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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

India’s Renewable Energy Revolution

As India accelerates its transition towards a sustainable future, its renewable energy (RE) sector has
witnessed unprecedented growth. In 2024, the country made significant strides in solar and wind energy
installations, policy advancements, and infrastructural improvements, setting the stage for ambitious
targets in 2025. With a commitment to achieving 500 GW of non-fossil fuel-based energy capacity by
2030, India is emerging as a global leader in clean energy. As on 20th Jan 2025, India’s total non-fossil fuel-
based energy capacity has reached 217.62 GW.

The year 2024 saw a record-breaking 24.5 GW of solar capacity and 3.4 GW of wind capacity added,
reflecting a more than twofold increase in solar installations and a 21% rise in wind installations compared
to 2023. This surge was driven by government incentives, policy reforms, and increased investments in
domestic solar and wind turbine manufacturing. Solar energy remained the dominant contributor to
India’s renewable energy growth, accounting for 47% of the total installed renewable energy
capacity. Last year saw the installation of 18.5 GW of utility-scale solar capacity, a nearly 2.8x
increase compared to 2023. Rajasthan, Gujarat, and Tamil Nadu emerged as the top-performing states,
contributing 71% of India’s total utility-scale solar installations.

The rooftop solar sector also experienced significant growth in 2024, with 4.59 GW of new capacity
installed, marking a 53% increase from the year 2023. The PM Surya Ghar: Muft Bijli Yojana, launched
in 2024, played a crucial role in this expansion, facilitating 7 lakh rooftop solar installations within ten
months. Additionally, the off-grid solar segment recorded a 182% increase, adding 1.48 GW in 2024,
furthering India's energy access goals in rural areas.

India added 3.4 GW of new wind capacity in 2024, with Gujarat (1,250 MW), Karnataka (1,135 MW),
and Tamil Nadu (980 MW) leading the way. These states accounted for 98% of the new wind capacity
additions, highlighting their continued dominance in wind power generation.

The Ministry of New & Renewable Energy (MNRE) played a pivotal role in fostering RE growth through
policy interventions and financial support. Key highlights include:

? Green Hydrogen Push: The government actively pursued the development of green hydrogen
policies to reduce costs and attract investments in this emerging sector.

? Manufacturing Expansion: Domestic solar PV and wind turbine manufacturing were scaled up,
supporting India’s ambition to become a global RE manufacturing hub.

? Grid Infrastructure Development: The MNRE proposed significant investments in inter-state
transmission systems to evacuate power from renewable-rich states like Rajasthan, Gujarat, and
Madhya Pradesh.

India’s renewable energy sector is on a transformative journey, with 2024 marking a year of record
capacity additions and policy advancements. As the country moves into 2025, addressing regulatory,
financial, and infrastructural challenges will be crucial. With continued policy support, increased

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