India renewable power output grows at fastest pace in three years

India’s renewable energy output surged 24.4% YoY to 134.43 billion kilowatt hours (kWh) in H1 2025, marking the fastest growth since 2022, according to a Reuters analysis of federal grid data. The share of renewables, excluding hydropower, crossed a record 17% in June. This shift comes as coal-fired power generation fell by 3% due to a milder summer, early monsoons, and moderating economic activity, resulting in high domestic coal stockpiles and reduced imports.
India is expected to add 32 gigawatts (GW) of renewable capacity in 2025, up from 28 GW in 2024, according to Moody’s-owned Investment Information and Credit Rating Agency (ICRA). The country added 16.3 GW of solar and wind capacity between January and May 2025 alone. Following a slowdown that caused India to miss its 2022 renewable energy target of 175 GW, the focus has now shifted towards achieving 500 GW of non-fossil capacity including hydro and nuclear by 2030. However, Standard & Poor's (S&P) Global Commodity Insights noted that while the target is attainable, it may be postponed to 2032, with investments in grid modernisation and energy storage being key to meeting the goal.

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