India Adds Record 22 GW Renewables in H1 2025, Storage Gains Momentum

India set a new record for renewable energy installations in the first half of 2025, adding 22 GW of clean energy capacity, its highest increase ever in a six-month period. This marks a 57 percent rise compared to the 14.2 GW added during the same period last year, as per data from Rystad Energy.

The latest additions include 18.4 GW of solar power, 3.5 GW of wind, and 250 MW of bioenergy generated from plant and animal waste. Much of the growth was propelled by developers accelerating project timelines to benefit from the government's Interstate Transmission System (ISTS) charge waiver, which offers phased cost reductions until 2028. The waiver has helped lower project costs and spurred aggressive bidding and installations across the country.

With the new capacity additions, India’s total installed renewable energy, including large hydropower,  now stands at 234 GW. This milestone moves the country closer to achieving its target of sourcing 50 percent of installed power capacity from non-fossil fuel sources. However, while renewable capacity is climbing, fossil fuels continue to dominate actual electricity generation. In the first half of 2025, nearly 75 percent of power generated still came from coal, oil, and gas-fired plants.

Nuclear energy, although a smaller player in the mix, is beginning to grow in significance. Unit 7 of the Rajasthan Atomic Power Project, a 700 MW unit, was recently connected to the northern grid. Additionally, the government has approved the development of India’s first Small Modular Reactor (SMR) in Bihar. Despite this, nuclear remains a contentious topic due to high costs, safety concerns, and challenges around waste disposal.

Despite the record renewable additions, India is also preparing to expand its coal fleet, with plans underway to install an additional 80 GW of coal-based thermal power. According to Sushma Jaganath, Vice President of Renewables and Power Research at Rystad Energy, the country is not undergoing a full energy transition yet. Instead, India is building up capacity on both conventional and renewable fronts to meet the rising electricity demand.

Meanwhile, battery energy storage is emerging as a vital part of India’s evolving energy ecosystem. In the first half of 2025, the country awarded 7.6 GW of Battery Energy Storage Systems (BESS), the highest allocation to date. This includes 5.4 GW of collocated solar and storage projects, and 2.2 GW of standalone storage. Auction prices averaged INR 4,000 per MWh for standalone BESS and INR 3,208/MWh for solar+BESS, reflecting a downward trend that could make integrated storage more commercially viable.

Among the major winners in the BESS auctions, Jindal Group secured 990 MW of collocated projects, while NTPC and ReNew each bagged 900 MW. In the standalone storage segment, JSW Energy won 625 MW, followed by Reliance Power with 525 MW. Adani Green Energy, which has traditionally focused on solar and wind, also ventured into storage with a 510 MW collocated project, signaling a broader shift in strategy among leading developers.

Regionally, western states continue to lead the renewable energy rollout. Rajasthan tops the list with 37.4 GW of installed capacity, including 32 GW from solar and 5.2 GW from wind. Gujarat follows closely with 35.5 GW, comprising 21.5 GW solar and 13.8 GW wind. Tamil Nadu ranks third with 22.4 GW, including 11.8 GW of wind and 10.6 GW of solar capacity. The state also leads in bioenergy contributions, accounting for 1 GW of the national total of 11.6 GW.

Other states making notable contributions to wind capacity include Karnataka (7.7 GW), Maharashtra (5.3 GW), Andhra Pradesh (4.4 GW), and Madhya Pradesh (3.2 GW).

While India continues to build momentum in renewable energy, experts caution that the road to net-zero emissions by 2070 will require deeper changes. Enhancing grid infrastructure, expanding storage solutions, and phasing down coal dependency remain critical if the country hopes to shift from energy expansion to true energy transition.