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Power Sector in India

India's renewable energy capacity has nearly tripled from 76.37 GW in March 2014 to 225.61 GW in May 2026, accounting for 41.6% of the country's total installed power capacity of 542.36 GW, reflecting the rapid expansion of clean energy infrastructure.

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Growing
Demand

*India emerged as the world’s third-largest producer of wind and solar energy electricity in 2025, behind US and China, according to the sixth edition of Ember’s Global Electricity Review. The report highlighted that wind and solar accounted for 17% of global electricity generation in 2025, with India’s share at 14%.

*India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 542.36 GW as of December 2025.

*In December 2025, India’s electricity demand reached a record 2,41,213 Megawatt (MW), with 2,41,201 Megawatt (MW) supplied, up from earlier peaks in October and November, reflecting rising consumption amid economic growth, per the National Load Despatch Centre (NLDC).

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Attractive
Opportunities

*Launched in 2023 under the National Green Hydrogen Mission, this scheme focuses on promoting the domestic production of green hydrogen and electrolyzers. With a budget allocation of INR 174.9 billion (US$2 billion) as part of the larger INR 197.44 billion (US$2.25 billion) mission, this scheme aims to produce 5 million metric tonnes (MMT) of green hydrogen annually by 2030.

*According to a report by Motilal Oswal, the Indian power sector presents an investment opportunity worth Rs. 40,00,000 crore (US$ 461.95 billion) over the next decade, driven by rising demand, infrastructure upgrades, and the transition to clean energy. 

*India's wind energy sector is making significant strides towards achieving the ambitious target of 100 GW of production by 2030, according to the Indian Wind Turbine Manufacturers Association (IWTMA).

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Policy
Support

*India has unveiled a comprehensive plan worth Rs. 9.15 lakh crore (US$ 109.50 billion) to enhance its power infrastructure and meet a projected demand of 458 GW by 2032. This initiative, led by the Ministry of Power under Prime Minister Narendra Modi, aims to strengthen the national power grid and boost energy security.

*100% FDI allowed in the power sector has boosted FDI inflow in this sector.

*Under the New Solar Power Scheme, works valued at Rs. 50 crore (US$ 5.66 million) have been sanctioned for the off-grid solar-based electrification of 9,961 households, as of 30 June 2025.

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Higher
Investments

*India’s power sector is expected to attract investment worth Rs. 17 lakh crore (US$ 205.31 billion) in next five to seven years.

*Over the next decade, India plans to invest Rs. 42,00,000 crore (US$ 488.37 billion) to upgrade its power sector, modernizing renewable energy, battery storage, and transmission networks to meet rising demand.

*Following the enactment of the landmark Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act in December 2025, India has unlocked the world's largest untapped nuclear market, targeting over US$ 214 billion in investments to achieve a 100 GW capacity by 2047.

*India’s thermal power sector is set to attract Rs. 2,30,000 crore (US$ 26.71 billion) in investments by 2027-28, with private players contributing around one-third, supporting the addition of 80 GW capacity by 2031-32.

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Last updated: Nov, 2026

Top Power Producing States in India

  • Gujarat
  • Maharashtra
  • Tamil Nadu
  • Rajasthan
  • Karnataka
  • Uttar Pradesh
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