India Insights: Clean Energy Progress Faces Coal’s Stark Reality

India is celebrating a genuine energy milestone: as of June 2025, it has achieved 50% of its installed electricity capacity from non-fossil fuel sources, five years ahead of its 2030 Paris Agreement target. Driven by a remarkable surge in solar, wind, hydro, and nuclear development, this achievement has been regarded as a “historic green leap” by the government and signals a notable acceleration in its clean-energy transition.

That being said, the numbers tell a more complex story. Despite half the capacity now being “clean,” coal-fired power still dominates actual electricity production, delivering over 1,517.9 Terawatt-hour (TWh) of the total 2,030 TWh generated in 2024, compared with just 240.5 TWh from renewables. In many ways, coal still carries the load, while the clean-energy shift remains largely symbolic in generation terms.

This stark contrast raises a core question: Is India's clean-energy milestone a genuine sign of transformative progress or strategic spin that hides the enduring might of coal?

The Achievement: Numbers & Symbolism

India has made huge progress in clean energy. By the end of June 2025, the country had a total of about 484.8 gigawatts (GW) of electricity capacity, and just over 50% of it came from solar, wind, hydropower, and nuclear sources. This means India reached its clean-energy target five years earlier than planned under the Paris climate goals.

This achievement carries big symbolic weight. At home, the government calls it proof that India can grow quickly while also fighting climate change. Abroad, it boosts India’s climate credibility at events like COP meetings, showing that a developing country can still hit ambitious renewable targets. It has also given India more soft power, as global partners highlight its clean-energy surge as a rare success story among major economies.

The Coal Reality

Even with big gains in solar and wind, coal is still the backbone of India’s power system. It still makes up 47% of total electricity capacity and generates more than 70% of actual power used.

India is also expanding coal, not cutting it. The government has approved new coal plants to avoid power shortages, and coal production is expected to reach 1.5 billion tones a year by 2030. Officials say this is needed to support economic growth and ensure energy security for a fast-developing country.

This creates a contradiction: India is celebrated globally for hitting renewable targets early, but at the same time it is building up coal, the world’s dirtiest fuel. It highlights the difficult balance India faces, between cutting emissions and keeping the lights on for 1.4 billion people.

The Government’s Balancing Act

India's government frames its energy strategy as a pragmatic approach to balancing rapid economic growth with climate goals. While celebrating the achievement of 50% non-fossil electricity capacity, the government acknowledges the necessity of coal in meeting the country's energy demands. This stance reflects the challenges of transitioning to a low-carbon economy while ensuring energy security for the world’s most populous country.

The government's commitment to clean energy is evident in its updated target of installing 500 GW of non-fossil fuel capacity by 2031-32, a slight extension from the original 2030 goal. This ambitious plan includes significant investments in solar, wind, hydro, and nuclear energy, aligning with India's broader climate objectives.

However, the government's continued support for coal is evident in plans to add approximately 90 GW of new coal-fired capacity by 2032. This expansion aims to meet the growing electricity needs of a rapidly developing economy; despite the paradox it presents in the context of climate commitments.

Critics argue that this dual approach undermines India's climate credibility. They point out that while the country is making strides in renewable energy, the ongoing investment in coal could hinder progress toward net-zero emissions by 2070.

India is increasingly seen as a climate leader among emerging economies. However, at international climate summits like COP26 and COP29, India has faced scrutiny for its continued investment in coal. At COP26, India played a pivotal role in modifying the Glasgow Climate Pact's language from a commitment to "phase out" coal to a more ambiguous "phase down," a change that drew criticism from climate advocates and leaders.

Deep Analysis: What This Means

India’s energy milestone highlights a key paradox: while renewable capacity has surged, actual electricity generation is still dominated by coal. Several structural challenges explain this gap. Renewable energy output depends on weather conditions, and India’s transmission and storage infrastructure is still developing. Many industrial and urban centers rely on stable baseload power, which coal provides more reliably than solar or wind sources.

The political economy also plays a role. Coal supports millions of jobs and generates revenue in key states. This makes phasing it out politically sensitive, even as the government invests heavily in renewable projects.

From a climate perspective, this dual approach raises concerns. India aims for net-zero emissions by 2070, but continued coal expansion risks overshooting the carbon budget. Analysts argue that without faster coal phase-down and improved grid management, the country may face a “coal lock-in” scenario, where old and new coal plants continue to dominate generation despite high renewable capacity.

Future Pathways & What to Watch

India has several opportunities to accelerate its clean energy transition. Green hydrogen is a major focus, with the National Green Hydrogen Mission aiming to produce five million metric tons annually by 2030. Investments in electrolyzers, storage, and transport infrastructure could position India as a leader in this emerging sector. Battery storage is also advancing rapidly, with falling costs allowing renewable energy to be stored and used more reliably, helping reduce dependence on coal.

Offshore wind is another promising area: India’s first offshore wind project along the Gujarat coast is set to produce 500 megawatts and marks a significant step in diversifying renewable sources. In addition, grid modernization, including smart meters and improved infrastructure is expected to support the integration of renewables and improve overall system efficiency.

At the same time, there are risks. Existing and planned coal infrastructure could become stranded assets as global decarbonization progresses, potentially causing financial losses. Regions heavily reliant on coal also face worsening air pollution, which harms public health and the environment.

India’s achievement of reaching 50% non-fossil fuel electricity capacity ahead of its 2030 target is a major milestone. Yet the continued reliance on coal highlights the complex challenge of balancing economic growth with environmental responsibility. The country has shown it can sprint on renewables, but coal continues to jog alongside, supporting baseload power for a rapidly growing population.

The path forward will require careful planning, strategic investment in new clean technologies, policy reforms, and international collaboration. Whether this milestone signals a genuine green transformation or is largely a carefully staged achievement that masks coal’s enduring dominance remains the key question. How India manages this dual track will shape both its domestic energy future and its credibility on the global climate stage.