India Adds 31.2 GW Non-Fossil Capacity in FY 2025–26; REIAs Issue 67.5 GW of Renewable Energy LoAs with Zero Cancellations

India has added 31.2 GW of non-fossil fuel electricity capacity in the current financial year up to October 2025, taking the country’s total installed non-fossil capacity to about 259 GW. This milestone places India five years ahead of its Nationally Determined Contribution (NDC) target of achieving 50% installed power capacity from non-fossil sources, Union Minister for New and Renewable Energy Pralhad Joshi informed the Rajya Sabha on Tuesday.

According to data shared by the Ministry of New & Renewable Energy (MNRE), Renewable Energy Implementing Agencies (REIAs)—Solar Energy Corporation of India (SECI), NTPC, NHPC and SJVN—have collectively issued Letters of Award (LoAs) totalling 67,554 MW since April 2023. Notably, none of these awarded projects has been cancelled, signalling strong market confidence and stable policy execution.

The Ministry noted that renewable energy expansion is progressing through multiple channels, with several states issuing their own procurement tenders and industries adding capacity through Green Energy Open Access and captive routes. The growing affordability of solar-plus-storage systems and dispatchable renewable power is shifting preferences away from standalone solar and even wind-solar hybrid projects. Distribution companies are increasingly opting for configurations that ensure supply during peak hours and provide firm, dispatchable renewable energy.

In response to this evolving demand, the Government has directed REIAs to prioritize tenders for solar with energy storage, peak-hour supply, and firm and dispatchable renewable energy (FDRE).

To expedite the signing of power purchase agreements (PPAs), the Centre has urged states to meet Renewable Consumption Obligation (RCO) mandates and advised REIAs to aggregate demand from DISCOMs before issuing tenders. Regional workshops with major renewable energy-procuring states have been conducted to resolve implementation challenges.

On the transmission front, the Central Electricity Authority (CEA) has formulated a forward-looking plan aligned with MNRE’s estimated renewable potential, ensuring grid readiness for future capacity additions. The plan incorporates 47.2 GW of Battery Energy Storage System (BESS) capacity up to 2032, enabling peak load management, congestion relief and better utilisation of transmission infrastructure.

The recent CERC Connectivity and General Network Access (Third Amendment) Regulations, 2025, mandate separate connectivity for solar and non-solar hours, supporting more efficient grid use and enabling renewable-plus-storage projects to connect without requiring additional transmission lines.

The Minister affirmed that these coordinated measures—ranging from tendering reforms and demand aggregation to transmission planning and regulatory updates—are accelerating India’s renewable energy transition and strengthening the country’s long-term decarbonisation trajectory.