Clean energy share rises to 12.1% in 9 years, but infrastructure gaps persist

By: Shantanu Bhattacharji

India must balance renewable expansion with energy security, as coal remains crucial for industry and agriculture. A near-term strategy includes cleaner coal, efficiency gains, and hybrid renewables to ensure stability while transitioning to a greener grid.

India’s clean energy ambitions are accelerating, but infrastructure gaps are limiting their impact. The Energy Statistics India 2025 report highlights a steady rise in the share of renewable energy (excluding large hydropower) to 12.1 per cent of total electricity generation in FY24, up from 5.96 per cent in FY15. Over the past nine years, gross renewable electricity generation has grown at a 6.76 per cent CAGR, reaching 3,70,320 GWh (gigawatt-hours) in FY24 from 2,05,608 GWh in FY15. Installed renewable capacity crossed 210 GW in early 2025, with clean energy comprising nearly 47 per cent of the total power mix.

Despite these gains, the energy transition is facing bottlenecks in transmission infrastructure and storage systems. A significant portion of renewable capacity remains underutilised due to the lack of high-voltage transmission corridors connecting remote solar and wind farms to industrial demand centres. Additionally, the country’s battery storage deployment remains minimal, making it heavily reliant on coal and gas plants for grid stability during peak demand.

Experts are of the view that to sustain renewables momentum, India must prioritise transmission upgrades and energy storage expansion. The government’s Green Energy Corridor project, aimed at integrating renewable power into the grid, needs faster execution. Private investments in battery storage, pumped hydro, and smart grid technology will be critical to improving efficiency and reducing curtailment risks. Without these measures, the clean energy progress risks stalling under the weight of its own infrastructure shortfalls.

The renewable energy sector is expanding, but fossil fuels remain dominant. According to the report, coal accounted for nearly 79 per cent of the country’s total domestic energy supply in FY24, highlighting its continued role as the backbone of the power system. Meanwhile, per capita energy consumption rose by 25.4 per cent over the past decade to 18,410 megajoules per person, reflecting the growing demand across sectors.

The industrial sector consumed 42 per cent of total electricity in FY24, reinforcing its status as India’s largest power consumer. The domestic sector accounted for 24 per cent, followed by agriculture (17 per cent) and commercial consumers (8 per cent). Despite a rising share of renewables in the energy mix, coal remains essential for meeting baseload demand and ensuring grid stability, particularly in the absence of large-scale energy storage solutions.

At present, India faces a delicate balancing act: scaling up renewables while maintaining energy security. However, industrial and agricultural reliance on cheap, consistent power means coal’s dominance is unlikely to fade soon. In the short term, a gradual shift to cleaner coal technologies, increased energy efficiency, and hybrid renewable projects could help bridge the gap.

Also, the report mentioned that a sharp increase in crude oil import dependency, rising from 83.5 per cent in FY15 to 88.9 per cent in FY24. Similarly, natural gas import reliance surged from 35.6 per cent to 46.6 per cent over the same period, exposing the economy to global price volatility and geopolitical risks. In contrast, coal import dependency fell to 25.9 per cent from 28.7 per cent, reflecting a push for domestic coal production.

Reducing energy import dependency requires scaling up domestic oil and gas exploration, accelerating the shift to electric mobility, and strengthening renewable energy integration. The recent policy push for green hydrogen and biofuels could help cut crude oil reliance in the long term.