The Ministry of Power has reported a steady rise in electricity generation from non-conventional energy sources across the country over the past five financial years, highlighting India’s accelerating transition toward clean energy.
According to data presented in the Lok Sabha by Shripad Naik, total electricity generation from renewable sources—including wind, solar, biomass, bagasse, small hydro, and waste-to-energy—has increased significantly from 1,47,247 million units (MU) in FY2020-21 to 2,55,009 MU in FY2024-25. For the current financial year FY2025-26 (till February 2026), generation has already reached 2,83,621 MU, indicating strong year-on-year growth.
Solar and wind energy continue to dominate the renewable mix, with states such as Rajasthan, Gujarat, Tamil Nadu, and Karnataka emerging as key contributors. Maharashtra also remains a major contributor, recording consistent growth in renewable generation across the period.
The government further highlighted that, as per the Central Electricity Authority, India’s installed power generation capacity is projected to reach approximately 8,73,736 MW by 2031-32. Of this, around 5,07,411 MW is expected to come from non-conventional energy sources, including 3,64,566 MW from solar and 1,21,895 MW from wind.
At present, India’s total installed generation capacity stands at about 524 GW, of which nearly 215.5 GW is derived from non-conventional sources, reflecting the country’s growing reliance on clean energy.
The government reiterated that under the provisions of the Electricity Act 2003, setting up power plants remains a de-licensed activity, allowing companies to establish and operate generation facilities without requiring a license, subject to compliance with technical standards.
To further accelerate renewable energy deployment, the government has implemented several policy measures and flagship schemes. These include initiatives such as PM-KUSUM, PM Surya Ghar Muft Bijli Yojana, the National Green Hydrogen Mission, and viability gap funding (VGF) schemes for offshore wind and battery energy storage systems (BESS).
Additional policy support includes the waiver of inter-state transmission system (ISTS) charges for renewable energy projects, issuance of standard bidding guidelines for tariff-based procurement, and a bidding trajectory of 50 GW annually for renewable energy projects through implementing agencies from FY2023-24 to FY2027-28.
The government has also enabled 100% foreign direct investment (FDI) under the automatic route and strengthened transmission infrastructure through the Green Energy Corridor scheme to support the evacuation of renewable power.
Further, to boost energy storage capacity, the government has approved VGF schemes for the development of battery energy storage systems, with a combined target exceeding 40 GWh and significant financial support allocations.
Renewable Purchase Obligations (RPO) and Renewable Consumption Obligations (RCO) have also been notified to drive demand for clean energy, with penalties for non-compliance and provisions for decentralised renewable energy consumption.
As of January 2026, around 1,54,830 MW of renewable capacity is under construction, while an additional 47,920 MW is in the planning stage and targeted for completion by 2029-30.
The government emphasised that these initiatives are aimed at strengthening India’s renewable energy ecosystem, ensuring energy security, and supporting the country’s long-term transition to a low-carbon economy.
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