Renewable Energy in India: Solar, Wind, and Green Hydrogen
July 19, 202613 min read
In 2015, India committed to 175 GW of renewable energy by 2022 at the Paris climate summit. The world was sceptical. By 2022, India had installed 150 GW - not 175, but a fivefold increase from 2015's 30 GW. By 2025, India crossed 200 GW of renewable capacity, making it the world's fourth-largest renewable energy market after China, the US, and Brazil.
But the transition is uneven. Solar has boomed (tariffs below ₹2/kWh - cheaper than coal in daytime). Wind has stalled (capacity additions falling year-on-year). Green hydrogen is a promise - exciting but expensive. And coal still accounts for 50% of installed capacity and 70% of electricity generation. India's energy transition is not a simple story of renewable triumph - it is a complex story of technology disruption, policy push, grid integration challenges, and the political economy of coal.
[TOPIC CLASSIFICATION]
Topic type: Environment / Energy - Renewable Energy
PYQ frequency: High - 2-3 questions in Prelims + 1-2 in Mains GS-3 every year
Trap: Confusing conservation categories (National Park vs Sanctuary vs Biosphere Reserve) or species protection schedules. Examiners test precise legal terminology.
Most confused: The distinction between in-situ and ex-situ conservation, and between different international conventions (CBD vs Ramsar vs CITES vs CMS).
Current affairs hook: COP outcomes, India's NDC updates, new amendments (Forest Conservation Amendment 2023, Wildlife Protection Amendment 2022), species reintroduction, plastic/E-waste rules, Green Credit Programme.
Mains hinge: Frame answers around the core tension - conservation vs development, central vs state jurisdiction, statutory vs participatory governance, intergenerational equity vs present needs.
Core Concept
India's Renewable Energy Landscape
Current Status (as of mid-2025):
Total installed electricity capacity: ~450 GW
Renewable capacity (including large hydro): ~200 GW (44%)
500 GW non-fossil fuel capacity by 2030 (includes large hydro, nuclear)
50% cumulative electric power from renewables by 2030
50% reduction in emission intensity of GDP by 2030 (vs. 2005)
Net-zero emissions by 2070
Renewable Purchase Obligation (RPO):
DISCOMs must purchase a minimum % of electricity from renewable sources
2024-25: 27% total RPO (solar: 11%, non-solar: 16%)
Increasing to 43% by 2029-30
Enforcement: State Electricity Regulatory Commissions - but compliance is weak (average: 60%)
Solar Energy
Growth Trajectory:
2014: 3 GW → 2020: 35 GW → 2025: 90 GW
Target: 280 GW by 2030 (the largest component of 500 GW target)
Solar tariffs: ₹1.99/kWh (2024 auction in Gujarat) - lowest in India, competitive with coal
Policy Framework:
National Solar Mission (2010): First phase target of 20 GW by 2022 - achieved 4 years early
PM-KUSUM (2019): Solar pumps for farmers - target 30.8 GW (off-grid + grid-connected solar pumps); ~5 GW achieved by 2025
Rooftop Solar Programme (Phase II, 2019): 40 GW rooftop target by 2026 - only 12 GW installed (largely because DISCOMs resist net metering - they lose high-paying industrial/commercial customers)
PLI for Solar Manufacturing (2021, 2024): Two rounds of PLI for domestic solar cell and module manufacturing - total outlay ₹24,000 crore; target: 65 GW domestic manufacturing capacity by 2026
Basic Customs Duty (2022): 40% on imported solar modules, 25% on solar cells - to promote domestic manufacturing but has slowed capacity addition
Key Solar Parks:
Bhadla (Rajasthan): 2,245 MW - world's largest solar park (by capacity)
Pavagada (Karnataka): 2,050 MW
Kurnool (Andhra Pradesh): 1,000 MW
Rewa (Madhya Pradesh): 750 MW
Charanka (Gujarat): 690 MW
Wind Energy
Growth Trajectory:
2014: 21 GW → 2020: 38 GW → 2025: 48 GW
Target: 140 GW by 2030 (under 500 GW non-fossil target)
Wind tariffs: ₹2.50-3.00/kWh (higher than solar, lower than coal)
Stagnation Factors:
Land constraints: Good wind sites (Tamil Nadu, Gujarat, Maharashtra, Karnataka, Rajasthan) are largely occupied
Repowering: Old wind farms (1 MW turbines from 2000s) have low PLF (10-15%); replacement with 3-4 MW turbines could double output without new land - but policy is unclear
Offshore wind: India has 70 GW offshore wind potential (Gujarat coast: 50 GW, Tamil Nadu coast: 20 GW) - but no offshore wind farm operational yet
Auction uncertainty: Wind auctions have been irregular; offshore wind auctions (expected 2024) delayed to 2025
Offshore Wind Policy (2023):
Target: 37 GW offshore wind by 2030 (very ambitious - most experts consider it unrealistic)
First offshore wind park planned off Gujarat coast (near Jakhau port)
Viability Gap Funding of ₹7,000 crore allocated
Challenges: High cost (₹7-10/kWh), port infrastructure, seabed surveys incomplete, no local supply chain
Green Hydrogen
National Green Hydrogen Mission (2023):
Total outlay: ₹19,744 crore (until 2030)
Target: 5 million tonnes (MT) annual green hydrogen production by 2030
Target: 125 GW renewable energy dedicated to green hydrogen production
Target: ₹10-12 trillion investment by 2030
Target: 600,000 jobs
SIGHT (Strategic Interventions for Green Hydrogen Transition):
Production incentives: ₹13,000 crore for electrolyser manufacturing (incentive per kW)
Electrolyser manufacturing target: 15 GW capacity by 2030
Green hydrogen production incentive: ₹8,000 crore (₹50/kg in first year, declining)
Key Applications:
Refining: Replace grey hydrogen (from natural gas) in petroleum refineries - 5 MT/year current demand
Fertiliser: Replace grey hydrogen in urea production - 3 MT/year demand (India imports 30% of natural gas for fertiliser)
Steel: Green hydrogen-based DRI (Direct Reduced Iron) - India's steel sector emits 12% of national CO2
Transport: Hydrogen fuel cell vehicles (buses, trucks) - FAME II extended to hydrogen; 5,000 hydrogen buses approved
Power: Hydrogen blending in natural gas pipelines - pilot at 5% blending in 12 cities (2024)
Challenges:
Cost: Green hydrogen costs ₹350-400/kg currently; target ₹160/kg by 2030 (Grid connected scalable and cheaper solution needed)
Electrolyser dependency: 90% of electrolysers imported from China (PEM, Alkaline)
Storage: Hydrogen is difficult to store - requires high pressure (700 bar) or cryogenic temperature (-253°C)
Water: Green hydrogen requires 9 litres of water per kg of hydrogen - India's water-stressed regions may face constraints
Infrastructure: No dedicated hydrogen pipeline network; blending in existing gas pipelines limited to 5-10%
Key Facts
India's renewable capacity: ~200 GW (2025), 4th largest globally
500 GW non-fossil target by 2030 - CEA projects achievement by 2029-30
Solar: 90 GW installed; cheapest solar tariff ₹1.99/kWh (Gujarat, 2024)
Solar PLI: ₹24,000 crore for 65 GW domestic manufacturing capacity by 2026
Basic Customs Duty: 40% on imported solar modules
Green Energy Corridors: 10,000+ km of inter-state transmission lines for renewable integration
India's NDC target: 50% reduction in emission intensity by 2030 vs 2005 (on track)
UPSC Question Themes (Illustrative)
Treat these as original practice prompts unless a linked official UPSC paper is provided; they are not represented as verbatim PYQs.
| Type | Stage | What was tested |
|------|-------|-----------------|
| Practice | Prelims | National Green Hydrogen Mission - which ministry implements? (MNRE) |
| Practice | Mains GS-3 | "India's renewable energy targets are ambitious but face significant implementation challenges." Discuss with reference to solar and wind energy. |
| Practice | Prelims | Which of the following is NOT a component of India's NDC targets? Options included 500 GW non-fossil, net-zero 2070, 50% emission intensity reduction, 100% electric vehicles by 2030 |
| Practice | Mains GS-3 | "Green hydrogen is often called the 'fuel of the future.'" Analyse India's preparedness for the green hydrogen economy. |
| Practice | Prelims | Locations of ultra-mega solar parks - Bhadla, Pavagada, Kurnool |
| Practice | Mains GS-3 | "Offshore wind energy is the next frontier in India's renewable energy journey." Examine the opportunities and challenges. |
| Practice | Prelims | PM-KUSUM scheme - target beneficiaries (farmers) |
| Practice | Mains GS-3 | "India's energy transition is not just about adding renewable capacity but about transforming the entire energy system." Comment. |
| Practice | Prelims | RPO targets - which authority sets them? (State Electricity Regulatory Commission) |
| Practice | Mains GS-3 | "What is the significance of the International Solar Alliance (ISA) for India's solar diplomacy?"
Statement Elimination Guide
Correct: "India's 500 GW non-fossil fuel capacity target by 2030 includes large hydro (47 GW) and nuclear (8 GW) - not just solar and wind."
False: "India has achieved its 175 GW renewable energy target by 2022." (Partially true - achieved ~150 GW, missed the target by about 25 GW.)
Trap: "Solar energy is cheaper than coal in India across all conditions." (False - solar is cheaper in daytime (₹2/kWh vs. coal's ₹3-4/kWh) but cannot provide baseload power. Including storage costs (battery), solar is more expensive than coal for 24x7 supply.)
Correct: "The National Green Hydrogen Mission targets 5 million tonnes of green hydrogen production annually by 2030, with ₹19,744 crore outlay."
False: "Green hydrogen is completely emission-free." (False - green hydrogen production via electrolysis is zero-carbon IF the electricity used is from renewable sources. Storage, transport, and conversion back to electricity involve losses and some emissions.)
Trap: "India's wind energy sector is growing as fast as solar." (False - wind capacity additions have stagnated (2-3 GW/year vs. solar's 15-20 GW/year). Wind faces land constraints, repowering challenges, and policy uncertainty.)
Correct: "Renewable Purchase Obligations (RPOs) mandate DISCOMs to purchase a minimum percentage of electricity from renewable sources. Non-compliance can lead to penalties by State Electricity Regulatory Commissions."
False: "India can achieve net-zero emissions by 2070 without reducing its coal capacity." (False - coal accounts for 70% of electricity generation and is the largest source of CO2 emissions. Net-zero requires either a reduction in coal or large-scale carbon capture and storage - which is currently unviable.)
Trap: "The International Solar Alliance (ISA) is headquartered in India and focuses only on solar energy deployment." (Correct - ISA HQ in Gurugram (India), launched at COP21 by India and France. But ISA also works on storage, grid integration, and financing for solar projects in member countries.)
Current Affairs Hook
The 2024 National Electricity Plan (NEP) by the Central Electricity Authority (CEA) projected that India would achieve 500 GW non-fossil fuel capacity by 2029-30 - five years before the 2030 deadline. The plan also projected 364 GW solar, 143 GW wind, and 19 GW battery storage by 2031-32. But the NEP also noted that coal capacity would need to increase from 230 GW to 300 GW by 2030 to meet baseload demand - a stark reminder that 'non-fossil capacity addition' and 'coal phase-down' are not the same thing.
The 2024 Union Budget announced the 'Viability Gap Funding (VGF) for Offshore Wind' - ₹7,000 crore for the first 1 GW offshore wind project off the Gujarat coast. But tenders have been delayed multiple times. The offshore wind sector is watching this first project as a proof of concept - if it succeeds, it could unlock 70 GW of potential.
The EU's Carbon Border Adjustment Mechanism (CBAM) will apply to Indian steel, aluminium, and fertiliser exports from 2026. India's steel sector (12% of national CO2 emissions) is heavily coal-dependent. Green hydrogen-based steel production is the only technological pathway to decarbonise steel - but it is 3-4x more expensive than coal-based steel. This creates a direct economic imperative for green hydrogen adoption, beyond climate commitments.
India's rooftop solar sector received a boost in the 2024 Budget: ₹10,000 crore for the 'PM-Surya Ghar: Muft Bijli Yojana' (free electricity for 1 crore households through rooftop solar). The scheme provides 60% subsidy for up to 3 kW systems. But DISCOMs continue to resist net metering - the biggest implementation bottleneck.
Interlinkages
Economy (GS 3): Renewable energy as a driver of investment, job creation, and manufacturing. The PLI schemes for solar and green hydrogen are industrial policy tools.
International Relations (GS 2): International Solar Alliance (ISA), India's NDC commitments under UNFCCC, CBAM and trade implications, energy cooperation with Saudi Arabia/UAE (green hydrogen), IEA membership for India.
Governance (GS 2): Policy design and implementation - RPO enforcement, DISCOM financial health, centre-state coordination on electricity.
Agriculture (GS 3): PM-KUSUM (solar pumps), agri-voltaic systems (solar panels + crops on same land), biomass energy from agricultural waste.
Ethics (GS 4): Energy justice (equitable access, no community displacement for solar parks), intergenerational ethics (decarbonisation for future generations).
Geography (GS 1): Spatial distribution of renewable resources (solar in Rajasthan/Gujarat, wind in Tamil Nadu/Gujarat, hydro in Himalayas/Northeast).
Common Mistakes
Confusing installed capacity with actual generation. Solar's PLF (15-20%) is much lower than coal's (55-65%). Never compare capacity numbers without mentioning PLF.
Treating all renewable targets as the same. 175 GW (by 2022 - missed), 500 GW non-fossil (by 2030 - on track), 50% emission intensity reduction (by 2030 - on track), net-zero (2070 - aspirational). Know each separately.
Ignoring the coal reality. Despite renewables, coal still generates 70% of India's electricity. Any answer on energy transition must acknowledge coal's continued dominance and the political economy of coal-dependent states.
Overstating green hydrogen's readiness. Green hydrogen is at the 'nascent' stage in India - 5 MT target by 2030 but less than 0.1 MT production capacity today. It faces cost, technology, storage, and infrastructure challenges.
Missing the grid integration challenge. Renewables are intermittent (sun doesn't shine at night, wind doesn't blow steadily). Grid balancing requires battery storage, pumped hydro, or flexible coal/gas - all of which add cost and complexity.
Forgetting the DISCOM angle. DISCOMs are the weak link in the renewable energy chain - poor financial health, weak RPO compliance, resistance to rooftop solar and net metering. Any answer on renewable energy challenges must mention DISCOMs.
Revision Snapshot
India's RE capacity: ~200 GW (2025). Targets: 500 GW non-fossil (2030), net-zero (2070). Solar: 90 GW, PLF 15-20%, cheapest tariff ₹1.99/kWh, PLI for 65 GW domestic manufacturing, 40% BCD on imports. Wind: 48 GW, stagnant, 70 GW offshore potential untapped. Green Hydrogen Mission: ₹19,744 cr, 5 MT target by 2030, SIGHT incentives. RPO: 27% (2025) rising to 43% (2030). Key challenge: Coal still 50% capacity, 70% generation. Energy Trilemma: Security (107th in Global Energy Index), Equity (1,255 kWh/capita), Sustainability (reducing coal dependence). DISCOM financial health is the binding constraint. Green hydrogen cost: ₹350-400/kg, target ₹160/kg by 2030. Solar PLF vs coal PLF: know the difference for every generation question.