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India stands at the forefront of a global energy transition driven by a commitment to sustainable development and climate resilience. As one of the world's fastest-growing economies, India's energy needs are substantial, but so is its potential to lead the future of energy. With this context, we have developed the report India's Leadership in Energy Transition and Strategic Interventions for Leading the Future of Energy in India. This report explores India's net zero goals, clean energy transitions and the strategic interventions that are shaping the country’s energy landscape.
The need for an energy transition in India is underscored by several critical factors:
India's renewable energy expansion is a cornerstone of its climate and energy policy, underpinned by ambitious targets, innovative programmes, and robust policy frameworks. India aims to achieve 500 GW of non-fossil fuel-based capacity by 2030, including solar, wind, and hydroelectric power. As of October 2024, the country has installed over 203 GW of energy capacity based on non-fossil fuel, including 92 GW from solar, 47 GW from wind, and 51 GW from hydropower. To meet the 2030 target, India is focusing on large-scale renewable energy parks, offshore wind installations, and hybrid projects. Programmes like the National Solar Mission and state-specific renewable policies are driving capacity additions, with strong support from international investments and partnerships.
India's leadership in energy transition is underpinned by a series of strategic interventions that address policy, technology, finance, and infrastructure.
Solar and wind energy have become key drivers of India’s renewable energy expansion. Initiatives like hybrid systems, Firm and Dispatchable Renewable Energy (FDRE) projects, and Round-The-Clock (RTC) power tenders are enhancing the reliability of these sources. Peak power solutions, supported by battery energy storage systems (BESS) and pumped storage plants (PSP), address intermittency challenges and ensure grid stability. With declining technology costs and strong policy incentives, the share of solar and wind in India’s energy mix is expected to grow exponentially. To incentivise renewable energy generation, India provides a waiver on ISTS charges for renewable projects commissioned before June 2025. Additionally, the introduction of General Network Access (GNA) is expected to simplify grid access, improving transmission efficiency and accelerating RE deployment.
India’s National Hydrogen Mission underscores the nation's focus on green hydrogen as a cornerstone of its clean energy ecosystem. The mission targets the production of 5 million tons of green hydrogen annually by 2030, aiming to decarbonise industries such as steel, cement, and transportation. This transformative initiative complements the forthcoming Indian Carbon Market, which will create incentives for carbon reduction and stimulate investments in low-carbon technologies. Together, these efforts position India as a leader in renewable and hydrogen-based solutions.
India's Production-Linked Incentive (PLI) schemes are enhancing domestic manufacturing capabilities for Battery Energy Storage Systems (BESS), solar modules, and transformers (anticipated), reducing dependency on imports and driving innovation. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme is advancing the clean mobility agenda by subsidising electric vehicle (EV) adoption. These initiatives are instrumental in reducing emissions, especially in the transportation sector, which is a significant contributor to India’s overall carbon footprint.
India’s energy transition aligns with its commitment to achieving net zero emissions by 2070 and meeting 50% of its electricity requirements from renewable sources by 2030. The country also plans to reduce its emissions intensity by 45% by 2030, demonstrating a balanced approach to economic growth and environmental responsibility. Through strategic policies, international collaborations, and innovative technologies, India is establishing itself as a global leader in renewable energy while contributing meaningfully to climate change mitigation.
India's energy transition is not without challenges. The country needs to address issues such as grid stability, energy storage, and the integration of renewable energy into the existing infrastructure. However, these challenges also present opportunities for innovation and development. By leveraging advanced technologies and fostering international collaborations, India can overcome these hurdles and lead the way in the global energy transition.
India's leadership in energy transition is a testament to its commitment to sustainable development and climate resilience. Through strategic interventions in policy, technology, finance, and infrastructure, India is paving the way for a cleaner, greener, and more sustainable energy future. As the country continues to innovate and invest in renewable energy, it sets an example for the world, demonstrating that economic growth and environmental sustainability can go hand in hand.
By embracing renewable energy and energy efficiency, India is addressing its energy needs and contributing to global efforts to combat climate change. The journey towards a sustainable energy future is challenging, but with continued leadership and strategic interventions, India is well-positioned to lead the way.