BharatNotes
India's Renewable Energy Targets
India has committed to achieving 500 GW of installed non-fossil fuel energy capacity by 2030 and sourcing 50% of its electricity from renewable sources. These targets were announced at COP26 in Glasgow (November 2021) as part of India's Panchamrit pledge and are central to the country's updated Nationally Determined Contributions (NDCs) under the Paris Agreement.
Current Installed Capacity (as of November 2025)
| Source | Installed Capacity |
|---|---|
| Solar | ~136 GW |
| Wind | ~55 GW |
| Large Hydro | ~51 GW |
| Biomass & Others | ~12 GW |
| Total Renewable (incl. large hydro) | ~254 GW |
| Total National Capacity | ~510 GW |
Non-fossil share: Approximately 49.8% of India's total installed electricity capacity comes from non-fossil sources (as of November 2025), putting the 50% target within reach.
Record Additions in 2025
India added a record 44.5 GW of renewable energy capacity in calendar year 2025 -- nearly double the 24.7 GW added in 2024. Solar energy crossed the 100 GW milestone in January 2025, and wind energy crossed 50 GW in March 2025.
India is now the 4th-largest renewable energy producer globally and the 3rd-largest consumer of electricity worldwide.
Solar Energy
National Solar Mission (JNNSM)
The Jawaharlal Nehru National Solar Mission was launched in 2010 under the National Action Plan on Climate Change (NAPCC). It was implemented in three phases:
| Phase | Period | Target |
|---|---|---|
| Phase I | 2010--2013 | 1 GW grid-connected + 200 MW off-grid |
| Phase II | 2013--2017 | 10 GW grid-connected |
| Phase III | 2017--2022 | 100 GW (revised upward from 20 GW in 2015) |
India achieved 100 GW of installed solar capacity in January 2025, making it one of the few nations to cross this milestone.
PM Surya Ghar: Muft Bijli Yojana
Launched on 13 February 2024 with a total allocation of Rs 75,021 crore, this scheme aims to install rooftop solar panels on 1 crore households by 2026-27 to provide free electricity (up to 300 units/month).
| Parameter | Detail |
|---|---|
| Launch Date | 13 February 2024 |
| Outlay | Rs 75,021 crore (~US$ 9 billion) |
| Target | 1 crore rooftop solar households by March 2027 |
| Progress (March 2026) | 9.56 GW rooftop solar capacity installed; over 28 lakh household installations |
| Subsidy Disbursed | Over Rs 16,000 crore |
| Projected Impact | 1,000 billion units of renewable electricity over 25-year lifespan; 720 million tonnes CO2-equivalent emission reduction |
Solar Parks
India has established large-scale solar parks under the Solar Park Scheme. The Bhadla Solar Park in Rajasthan's Thar Desert is the largest solar park in India and among the world's biggest:
- Capacity: 2,245 MW
- Area: 56 sq. km (14,000 acres)
- Investment: Over US$ 2.1 billion
- CO2 reduction: ~4 million tonnes per year
PLI Scheme for Solar Manufacturing
The Production-Linked Incentive (PLI) scheme for high-efficiency solar PV modules was launched to reduce import dependence on Chinese solar cells and modules.
| Parameter | Detail |
|---|---|
| Total Capacity Allocated (Tranche I + II) | ~48.3 GW of module manufacturing |
| Operational Capacity (June 2025) | 18.5 GW modules, 9.7 GW cells, 2.2 GW ingot-wafer |
| Investment Attracted | ~Rs 48,120 crore (~US$ 5.5 billion) |
| Jobs Created | 38,500 direct jobs |
| Impact on Imports | Solar module imports fell from US$ 3,363 million (FY22) to US$ 2,152 million (FY25) |
Wind Energy
India ranks 4th globally in installed wind energy capacity.
Installed Capacity and Leading States
As of mid-2025, India's installed wind power capacity was approximately 55 GW. The leading states are:
| State | Approx. Capacity |
|---|---|
| Gujarat | ~13.8 GW |
| Tamil Nadu | ~11.8 GW |
| Maharashtra | ~5.3 GW |
| Karnataka | ~5.2 GW |
| Rajasthan | ~4.3 GW |
Onshore vs Offshore Wind
Onshore wind forms the bulk of India's current capacity. Most installations are in the western and southern coastal states where wind speeds are favourable.
Offshore wind is at a nascent stage. India has an estimated offshore wind potential of 70 GW along the coasts of Gujarat and Tamil Nadu.
| Policy/Initiative | Detail |
|---|---|
| National Offshore Wind Energy Policy | Approved by Cabinet in 2015 |
| Offshore Target | 30 GW by 2030 |
| VGF Scheme (2024) | Rs 7,453 crore approved for India's first 1 GW offshore projects (500 MW each off Gujarat and Tamil Nadu coasts) |
| Port Upgrades | Rs 600 crore allocated for port infrastructure |
India's first offshore wind tenders (covering 4.5 GW off Gujarat and Tamil Nadu) were cancelled in August 2025 due to low developer interest, highlighting challenges in financing and supply chain readiness for offshore projects.
National Green Hydrogen Mission
Launched in January 2023, the National Green Hydrogen Mission (NGHM) aims to make India a global hub for production, usage, and export of green hydrogen.
Key Targets (by 2030)
| Parameter | Target |
|---|---|
| Green Hydrogen Production | At least 5 MMT (million metric tonnes) per annum |
| Renewable Energy Addition | ~125 GW associated capacity |
| Electrolyser Manufacturing | 15 GW per annum domestic capacity |
| Export Potential | Position India as a net exporter of green hydrogen |
Financial Outlay
| Component | Allocation (Rs crore) |
|---|---|
| SIGHT Programme | 17,490 |
| Pilot Projects | 1,466 |
| R&D | 400 |
| Other Components | 388 |
| Total Initial Outlay | 19,744 |
SIGHT Programme
The Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, implemented by the Solar Energy Corporation of India (SECI), has two components:
- Electrolyser Manufacturing Incentive -- Rs 4,440 crore (FY 2025-26 to FY 2029-30) to build domestic electrolyser production capacity
- Green Hydrogen Production Incentive -- Rs 13,050 crore (FY 2025-26 to FY 2029-30) to support cost-competitive green hydrogen output
Implementation Phases
- Phase I (2022-23 to 2025-26): Pilot projects, demand creation, R&D, and initial SIGHT disbursements
- Phase II (2026-27 to 2029-30): Scale-up of production, export infrastructure, and full supply chain development
Electric Vehicles (EVs)
FAME to PM E-DRIVE Transition
India's EV incentive framework has evolved through three stages:
| Scheme | Period | Outlay |
|---|---|---|
| FAME-I | 2015--2019 | Rs 895 crore |
| FAME-II | 2019--2024 | Rs 11,500 crore |
| PM E-DRIVE | Oct 2024 -- Mar 2026 (extendable) | Rs 10,900 crore |
PM E-DRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement) replaced FAME-II with revised incentive structures:
| Feature | Detail |
|---|---|
| Demand Incentive (FY25) | Rs 5,000 per kWh for e-2Ws and e-3Ws |
| Demand Incentive (FY26) | Reduced to Rs 2,500 per kWh |
| Charging Infrastructure | Rs 2,000 crore for ~72,000 new public chargers |
| Extended Support | E-trucks, e-buses, and charging infra supported till March 2028 |
EV Adoption Data (2025)
- PM E-DRIVE surpassed 1.13 million EV deliveries in its first year -- 3.4x higher annual volumes than FAME-II
- Electric two-wheelers are the largest EV segment, with over 1.15 million units sold in FY25
- Commercial electric three-wheelers (L5 category) exceeded targets at 153% achievement in FY25
- FAME-II supported ~9,300 chargers over five years; PM E-DRIVE targets over 70,000 in two years
Battery Manufacturing
India is building domestic battery manufacturing capacity through the PLI scheme for Advanced Chemistry Cells (ACC), with 50 GWh allocated across manufacturers to reduce dependence on imports and support the EV ecosystem.
Nuclear Energy
India's Three-Stage Nuclear Power Programme
Conceived by Dr Homi J. Bhabha in the 1950s, India's three-stage programme is designed to exploit the country's limited uranium but abundant thorium reserves (India holds approximately 25% of global thorium reserves).
| Stage | Reactor Type | Fuel Cycle | Status |
|---|---|---|---|
| Stage I | Pressurised Heavy Water Reactors (PHWRs) | Natural uranium --> Plutonium-239 as byproduct | Operational (primary current stage) |
| Stage II | Fast Breeder Reactors (FBRs) | Plutonium-239 + Uranium-238 (MOX fuel); breeds more fuel than consumed | Prototype FBR at Kalpakkam nearing completion |
| Stage III | Advanced Heavy Water Reactors (AHWRs) | Thorium-232 --> Uranium-233 (thermal breeder) | R&D stage |
Current Nuclear Capacity
| Parameter | Detail |
|---|---|
| Operational Reactors | 24-25 reactors across 7 power plants in 6 states |
| Installed Capacity | ~8,780 MW (~8.8 GW) |
| Under Construction | 8-11 reactors with ~8,700 MW combined capacity |
| Target by 2031-32 | 22,480 MW |
| Long-term Target (by 2047) | 100 GW under the Nuclear Energy Mission |
Recent Developments
- Rajasthan-7 (700 MW PHWR) connected to the grid in March 2025
- SHANTI Bill (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) passed both houses of Parliament in December 2025, facilitating private sector participation in nuclear energy
- India's thorium-focused Stage III remains a long-term strategic priority given the country's limited uranium (1-2% of global reserves) but vast thorium deposits
Sustainable Development Goals (SDGs)
The 17 Sustainable Development Goals were adopted by all 193 UN member states in September 2015 as part of the 2030 Agenda for Sustainable Development. They replaced the Millennium Development Goals (MDGs, 2000-2015).
The 17 SDGs
| No. | Goal | No. | Goal |
|---|---|---|---|
| 1 | No Poverty | 10 | Reduced Inequalities |
| 2 | Zero Hunger | 11 | Sustainable Cities & Communities |
| 3 | Good Health & Well-being | 12 | Responsible Consumption & Production |
| 4 | Quality Education | 13 | Climate Action |
| 5 | Gender Equality | 14 | Life Below Water |
| 6 | Clean Water & Sanitation | 15 | Life on Land |
| 7 | Affordable & Clean Energy | 16 | Peace, Justice & Strong Institutions |
| 8 | Decent Work & Economic Growth | 17 | Partnerships for the Goals |
| 9 | Industry, Innovation & Infrastructure |
NITI Aayog SDG India Index 2023-24
The SDG India Index, released on 12 July 2024, is the fourth edition of the composite index that tracks progress of all States and UTs on 113 indicators.
| Parameter | Detail |
|---|---|
| India's Overall Score | 71 (up from 66 in 2020-21 and 57 in 2018) |
| Score Range (States) | 57 to 79 (improved from 42-69 in 2018) |
| Front Runner States/UTs | 32 (up from 22 in 2020-21) |
| Top Performers | Uttarakhand, Kerala, Tamil Nadu, Goa, Himachal Pradesh |
| Lagging States | Bihar, Jharkhand, Nagaland, Meghalaya, Arunachal Pradesh |
Significant Progress Areas
- Goal 13 (Climate Action): Score rose from 54 (2020-21) to 67 (2023-24) -- largest increase
- Goal 1 (No Poverty): Score increased from 60 to 72
- Goal 8 (Decent Work): Notable improvement
Key Gaps
- Goal 5 (Gender Equality): Only goal where India's score is below 50 -- most critical gap
- Goal 2 (Zero Hunger): Score between 50-64, indicating persistent nutrition challenges
- Goal 4 (Quality Education): Improvement needed in learning outcomes
- Goal 9 (Industry & Innovation): Infrastructure and innovation gaps persist
Circular Economy
A circular economy aims to eliminate waste and maximise resource use by designing products for reuse, repair, remanufacturing, and recycling -- as opposed to the traditional "take-make-dispose" linear model.
NITI Aayog's 11 Focus Sectors
NITI Aayog constituted 11 committees (led by relevant line ministries) to develop action plans for transitioning to a circular economy in the following sectors:
- Municipal Solid Waste & Liquid Waste
- Scrap Metal (Ferrous)
- Scrap Metal (Non-Ferrous)
- Lithium-Ion Batteries
- Tyre & Rubber Recycling
- Gypsum Waste
- End-of-Life Vehicles (ELVs)
- Electronic Waste
- Toxic & Hazardous Industrial Waste
- Used Oil Waste
- Agricultural Waste & Solar Panels
10 sectoral action plans have been finalised for implementation by stakeholder ministries.
Extended Producer Responsibility (EPR)
EPR is the cornerstone policy tool for enforcing circularity. India has notified EPR frameworks under waste management rules for multiple waste streams:
| Waste Category | Annual Generation | Key Targets |
|---|---|---|
| Plastic Packaging | 3.4+ million tonnes | Recycled content mandates from April 2025; 100% target by FY 2028-29 |
| E-Waste | 1.6+ million tonnes | Mandatory collection via authorised PROs/recyclers |
| Battery Waste | 125,000+ tonnes | 70% (FY25), 80% (FY26), 90% (FY27+) collection targets |
| Tyre Waste | 275,000 tonnes | Year-wise collection and recovery targets |
| End-of-Life Vehicles | 5-6 million vehicles by 2030 | Material recovery targets under Vehicle Scrappage Policy |
Recent EPR Rule Notifications (2025)
- Environment Protection (End-of-Life Vehicles) Rules -- 6 January 2025
- Environment (Construction & Demolition) Waste Management Rules -- 2 April 2025
- EPR for Scrap of Non-Ferrous Metals -- 1 July 2025
Resource Efficiency
India's Resource Efficiency Policy and the Indian Resource Efficiency Programme (IREP) by MoEFCC and NITI Aayog aim to decouple economic growth from resource consumption by promoting secondary raw material markets, eco-design, and green public procurement.
Green Finance
Sovereign Green Bonds
India issued its first sovereign green bonds in January 2023, becoming one of the few developing countries to do so. Key details:
| Parameter | Detail |
|---|---|
| Total Issuance (Jan 2023 -- 2025) | 8 tranches totalling Rs 477 billion (~US$ 5.7 billion) |
| Purpose | Fund renewable energy, clean transport, climate adaptation, pollution prevention |
| Framework | Aligned with ICMA Green Bond Principles |
| Impact | Created a domestic green yield curve for institutional investors |
SEBI ESG Framework
The Securities and Exchange Board of India (SEBI) has progressively strengthened ESG disclosure and debt frameworks:
| Year | Development |
|---|---|
| 2017 | SEBI introduced the Green Debt Securities framework |
| 2023 | Updated framework with stricter disclosure norms |
| June 2025 | New Framework for ESG Debt Securities covering social bonds, sustainability bonds, and sustainability-linked bonds (SLBs) for the first time |
The June 2025 framework mandates third-party reviews, post-issuance reporting, and alignment with ICMA Principles or Climate Bonds Standards.
Carbon Credit Trading Scheme (CCTS)
India's national carbon market is being operationalised in phases:
| Parameter | Detail |
|---|---|
| Legal Basis | Energy Conservation (Amendment) Act, 2022 |
| Administrator | Bureau of Energy Efficiency (BEE) under Ministry of Power |
| Sectors Covered (Phase 1) | 9 energy-intensive sectors: Aluminium, Cement, Chlor-Alkali, Iron & Steel, Fertiliser, Paper & Pulp, Refinery, Petrochemicals, Textiles |
| Entities Covered | ~740 entities with legally binding emission intensity targets |
| Compliance Period | FY 2025-26 and FY 2026-27 (baseline: FY 2023-24) |
| Emission Intensity Reduction | Sector-specific targets ranging from ~2.8% to 15% |
| Coverage | Over 700 million tonnes CO2e -- placing India among the world's largest emissions trading systems |
| Market Launch | Expected by mid-2026 (compliance + voluntary offset mechanism) |
India's Sustainable Debt Market
India's total sustainable debt market has crossed US$ 55.9 billion, driven by corporate green bonds, sovereign issuances, and growing ESG-aligned lending.
Important for UPSC
Key Topics for Prelims
- India's renewable energy targets (500 GW by 2030, 50% non-fossil share)
- Current installed capacity milestones (solar 136 GW, wind 55 GW)
- PM Surya Ghar Yojana -- outlay, target, subsidy structure
- National Green Hydrogen Mission -- 5 MMT target, SIGHT programme
- FAME to PM E-DRIVE transition and incentive structure
- Three-stage nuclear programme -- fuel cycle for each stage
- 17 SDGs -- numbered list (frequently asked in Prelims)
- NITI Aayog SDG India Index -- latest score (71) and top/bottom states
- CCTS coverage -- 9 sectors, BEE as administrator
- Bhadla Solar Park -- capacity and location
Key Topics for Mains (GS-III)
- Critically evaluate India's progress toward the 500 GW renewable energy target by 2030. What are the key challenges?
- Discuss the significance of the National Green Hydrogen Mission for India's energy security and decarbonisation goals.
- How does the Carbon Credit Trading Scheme align India's industrial policy with its climate commitments?
- Examine the role of circular economy in addressing India's waste management crisis.
- Analyse the challenges in achieving SDG 5 (Gender Equality) in India despite overall improvement in SDG scores.
Mains Answer Framework: Renewable Energy Challenges
Achievements: Record 44.5 GW added in 2025; solar crossed 100 GW; 49.8% non-fossil share achieved.
Challenges:
- Grid integration -- intermittency of solar/wind requires massive battery storage and smart grid investment
- Land acquisition -- large solar/wind parks face competition with agriculture; rooftop adoption remains slow
- Manufacturing dependency -- despite PLI, India still imports significant solar cells and modules from China
- Offshore wind -- tender cancellations (August 2025) expose financing and supply chain gaps
- Distribution bottleneck -- DISCOMs' financial health remains weak, delaying power purchase agreements
- Green hydrogen cost -- currently 2-3x costlier than grey hydrogen; needs scale to achieve cost parity
Way Forward: Strengthen domestic manufacturing through PLI; invest in grid-scale battery storage; reform DISCOM finances; accelerate rooftop solar adoption via PM Surya Ghar; develop offshore wind supply chain; expand green hydrogen pilot projects.
