India’s non-fossil energy sources have reached 52.3% of the country’s total installed power capacity of 520.5 GW as of January 2026, while thermal power continues to account for around 70% of electricity generation, according to the Ministry of Power.

Of the total installed capacity, 271,96 GW comes from non-fossil sources, including renewables and nuclear, compared to 248.54 GW from fossil fuels, Minister of Power Manohar Lal told Parliament.

Renewables account for 263.18 GW, or 50.6% of the total, with solar alone contributing 140.60 GW, or 27%, making it the largest single source in the capacity mix.

Wind capacity stands at 54.65 GW, or 10.5%. Solar capacity is now approximately 2.5 times that of wind, highlighting its position as the primary driver of India’s energy transition.

The expansion of renewable capacity has been rapid, supported by a strong project pipeline. A total of 157.80 GW of renewable capacity is under construction, including 67.28 GW of solar and 60.04 GW of hybrid projects.

In comparison, only 38.74 GW of thermal capacity is under construction, with a longer-term pipeline of 97 GW planned. Nuclear capacity under development stands at 6.6 GW.

Generation still Thermal-Dominated

Despite the shift in installed capacity, electricity generation remains dominated by thermal sources. In FY 2024–25, total electricity generation reached 1.82 trillion units (TU), of which thermal power contributed 1.36 TU, or approximately 74.5%.

Renewable energy, including hydro, generated 403,643 MU, accounting for around 22%. In FY 2025–26, up to January, total generation stood at 1.54 TU, with thermal sources contributing 1.07 TU, or around 70%, and renewables generating 408,365 MU, or about 26%.

Solar generation has reached approximately 138 BU, surpassing wind generation at around 95 BU. Large hydro continues to contribute between 134 BU and 162 BU annually, indicating stable but limited growth. Biomass, bagasse, small hydro, and waste-to-energy together contribute approximately 27,500 MU, representing a marginal share of total generation.

Structural Constraints and Demand

Solar projects operate at capacity utilization levels of around 18% to 22%, while wind ranges between 25% to 35%. In contrast, coal-based plants operate at 60% to 80%, enabling higher output. Thermal power also provides dispatchable and firm supply, which is critical for meeting base load and balancing intermittent renewable generation.

Pumped hydro storage capacity under construction is at 11.62 GW and battery energy storage system capacity at 9.65 GW.

Demand patterns are constraining the utilization of renewables, as peak demand occurs in the evening when solar generation is unavailable. India’s peak demand reached 249.9 GW in FY 2024–25 and 245.4 GW in FY 2025–26 up to January, with projections rising to 345 GW by 2029–30 and 388 GW by 2031–32.

Renewable energy generation in states like Rajasthan and Gujarat has seen large-scale curtailment, despite new transmission projects coming online. According to developers, nearly 4 GW of commissioned renewable capacity continues to be curtailed during peak solar hours due to inadequate transmission margins. Despite rising power demand, supply availability has improved significantly, with energy shortfalls near zero and peak deficits negligible.

India’s renewable energy capacity, including large hydroelectric projects, reached 258.3 GW, with solar power accounting for 26.5% of India’s total installed power capacity and 52.7% of the total installed renewable energy capacity as of December 2025.