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India's Power Sector

India's Solar and Wind Boom

How India rapidly expanded solar and wind capacity through auctions and falling costs, and the 500 GW non-fossil target for 2030.

India has become one of the world’s biggest markets for renewable energy.

Rapid growth

  • In 2014-15, India’s solar capacity was only a few gigawatts.
  • By 2025, solar capacity had grown to over 100 gigawatts.
  • India’s non-fossil capacity crossed 50 percent of total installed capacity in 2025.

The 2030 target

India aims for 500 GW of non-fossil capacity by 2030.

Why costs fell

  • Global solar panel prices fell dramatically.
  • Reverse auctions: developers bid the lowest tariff to win projects, with solar tariffs falling to around 2 to 2.5 rupees per unit.

Where it’s built

  • Rajasthan and Gujarat for solar.
  • Tamil Nadu, Gujarat and Karnataka for wind.
  • Huge parks like Bhadla in Rajasthan and the Khavda renewable park in Gujarat.

Challenges

  • Intermittency: sun and wind vary.
  • Transmission lines to carry power from deserts to cities.
  • Land acquisition.
  • Discom payments and delays in signing power purchase agreements.

Capacity vs generation

Installed capacity isn’t the same as electricity produced. Solar panels only produce during the day, so renewables’ share of generation is lower than their share of capacity.

The desert park

In Bhadla, rows of solar panels stretch across the desert, producing cheap power at midday. The challenge is sending it to cities and storing it for the evening.

Thinking half of India's electricity already comes from renewables

Non-fossil sources exceed half of capacity, but their share of generation is lower.

Key takeaways
  • India's solar and wind capacity grew rapidly.
  • Non-fossil capacity crossed half of installed capacity in 2025.
  • Reverse auctions and cheap panels pushed tariffs down.
  • Intermittency, transmission and land are challenges.
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