India's energy sector is rapidly evolving, driven by rising demand and a strong push for
renewables, yet still reliant on fossil fuels.
Key Points (as of early 2025 data):
● Growing Demand: Per capita electricity consumption hit 1,395 kWh in 2023-24,
reflecting increasing energy needs. Power shortages are significantly reduced to 0.1% in
FY 2024-25.
● Total Capacity: Installed power capacity reached 466.26 GW by March 2025.
● Energy Mix:
○ Renewables are booming: Total installed renewable capacity (including large
hydro) is 220.10 GW by March 2025, with non-fossil fuels contributing nearly 48%
of total capacity. Solar leads with 105.65 GW. India aims for 500 GW from
non-fossil fuels by 2030.
○ Coal remains dominant: Coal-based capacity is 220.49 GW (47.29%) by January
2025, with coal production reaching 1047.57 MT in FY 2024-25.
○ Import Dependency: India remains highly dependent on imported crude oil and
natural gas (89.1% import dependency for crude oil in March 2025), making it
vulnerable to global price swings.
● Challenges: Integrating intermittent renewables into the grid, developing energy storage,
securing financing, and land acquisition are key hurdles.
● Government Initiatives: Schemes like the National Green Hydrogen Mission, PM
Surya Ghar Muft Bijli Yojana, and Viability Gap Funding for Offshore Wind are
driving the transition. The government also plans to significantly increase nuclear power
capacity to 100 GW by 2047.
In essence, India is balancing its growing energy needs with ambitious clean energy goals,
navigating challenges while aggressively expanding its renewable footprint and diversifying its
energy sources.