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Context:

India has achieved 50% of its power capacity from non-fossil sources, but actual clean energy generation remains below 30%.

Background:

As on 30 June 2025, non‑fossil sources account for 50.08 % of India’s 484.8 GW installed electricity capacity—five years ahead of the Paris‑pledged 2030 target.

These sources deliver only ≈28–30 % of the electricity actually generated, so coal still meets roughly 70 % of demand. 

Achieving headline capacity is a climate‑diplomacy win, but the utilisation gap threatens energy security, fiscal health of DISCOMs, and Net‑Zero credibility.

How India Reached 50 % Capacity So Early:

Driver	Illustrative Policy / Action	Impact
Clear political signal	Raised Nationally Determined Contribution (NDC) in 2021; 500 GW non‑fossil by 2030	Attracted global & domestic capital
Incentive architecture	Production‑Linked Incentive (PLI) for solar modules; Renewable Purchase Obligation; ISTS fee waiver	Cut project costs, ensured market
Private‑sector execution	IPPs such as Adani Green, ReNew, Greenko scaled solar‑wind‑hybrid parks	Added >15 GW in FY‑25 alone
International finance & tech	ISA, JET‑P, multilaterals	Concessional loans, know‑how

Why Generation Lags Behind:

Factor	Explanation	Evidence
Low Capacity Utilisation Factor (CUF)	Solar CUF ≈ 18‑21 %, wind ≈ 25 %, vs coal ≈ 60 %	-
Intermittency & seasonal skew	Solar peaks midday; wind peaks monsoon nights; mismatch with evening demand	Load curves show coal still supplies 75 % after sunset
Storage deficit	< 5 GWh grid‑scale BESS; pumped‑hydro pipeline slow	Limits round‑the‑clock renewable supply
Grid inflexibility	Legacy transmission, weak last‑mile; curtailment in RE‑rich states	3–5 % of RE generation curtailed in 2024‑25
Financially stressed DISCOMs	Prefer cheaper legacy coal PPAs to variable RE tariffs	Delays signing new PPAs

Implications

Energy Security: Diversifies primary mix, cuts import bill, but intermittency may force more LNG/coal spot purchases during peaks.
Economy & Jobs: Renewable manufacturing, EPC, and O&M already employ >300,000; potential >1 million by 2030.
Climate & Diplomacy: Enhances India’s voice in G‑20 and COP‑30 negotiations; credibility now hinges on increasing delivered clean kWh, not just MW.

Global Lessons & Domestic Case Studies

Germany’s storage push—4 GW batteries integrated with smart tariffs stabilise a 55 % RE grid.
Australia’s hybrid parks—Hornsdale (solar + wind + battery) supplies >50 % of South Australia’s load reliably.
Tamil Nadu’s wind‑solar coupling shows CUF gains of 6–8 % when sharing evacuation lines.

 Way Forward

Scale Storage Fast – Tender 50 GWh BESS and 10 GW pumped‑hydro by 2028; mandate storage in all new RE parks.
Flexible Thermal Fleet – Retrofit coal & gas plants for 55 % minimum load and faster ramp rates.
Demand‑Side Management – National time‑of‑day tariffs, smart meters, and industrial demand‑response to shift 15 GW evening peak.
Grid Modernisation – Green Energy Corridor‑II, region‑wise balancing markets, and HVDC lines from RE resource hubs.
Distributed & Rooftop Solar – 40 GW rooftop target with net‑billing to cut T&D losses and daytime urban peaks.
Manufacturing & Recycling – Enforce domestic content requirement only with parallel e‑waste and end‑of‑life recycling rules for panels and batteries.

Conclusion

Crossing the 50 % capacity threshold ahead of time confirms India’s capability to mobilise policy, finance, and technology at scale. The next frontier is converting installed megawatts into dependable megawatt‑hours through storage, smarter grids, and demand flexibility. Only then will the numbers on paper translate into cleaner air, lower emissions, and resilient economic growth.

ALSO READ- https://www.iasgyan.in/daily-current-affairs/indias-cooling-paradox

Source: NDTV

PRACTICE QUESTION

Q. “Installed capacity is a necessary but not a sufficient condition for energy transition in India.” Discuss the structural and technological reforms required to raise the share of clean energy in actual electricity generation to 50 % by 2030. (250 words)