Page 54 - Policy Economic Report - July 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Expanding the deployment of Battery Energy Storage Systems (BESS) and pumped hydro storage will be
critical to ensure grid reliability and round-the-clock power availability. Simultaneously, promoting
circularity in the lifecycle of solar panels, wind turbine blades, and batteries will support sustainable and
responsible material use. Accelerated investments in green hydrogen as a future-ready industrial fuel will
also play a vital role in deepening decarbonisation across sectors.Technology as the Force Multiplier

AI and Digitisation in Renewable Energy

Artificial Intelligence (AI) is set to emerge as the backbone of India’s future energy infrastructure. AI will
play a central role in demand forecasting, predictive maintenance, automated grid management, and
system efficiency enhancement. With AI-driven platforms, rooftop solar, electric vehicles, and smart
meters will function within intelligent energy marketplaces, enabling consumers to become active energy
producers—so-called ‘prosumers’.

At the same time, increased digitalisation brings new challenges. As the power sector becomes
increasingly reliant on data and digital infrastructure, cybersecurity must be prioritised. Protecting critical
infrastructure from cyber threats, data breaches, and algorithmic manipulation is integral to ensuring a
secure and resilient energy system.

Road Ahead

India’s achievement of 50% non-fossil fuel installed capacity ahead of the target year is a testament to its
ambition, innovation, and commitment to sustainable development. It affirms that development and
decarbonisation are not contradictory goals, but can in fact reinforce each other.

As the country moves toward the goal of 500 GW of non-fossil capacity by 2030 and net-zero emissions
by 2070, the path forward must be bold, inclusive, and technology-driven. India has already lit the lamp.
The time has now come to let it shine brighter—for the nation and for the world.

A. Installed Electricity Capacity by Source as on 30.06.2025 (RE + Large Hydro Combined)

Sector Capacity (in GW) Percentage
Thermal 242.04 GW (49.92%)
Nuclear 8.78 GW (1.81%)
RE (including Large Hydro) 234.00 GW (48.27%)
Total 484.82 GW (100%)

B. Installed Electricity Capacity by Source as on 30.06.2025 (Large Hydro and RE Shown Separately)

Sector Capacity (in GW) Percentage
Thermal 242.04 GW (49.92%)
Nuclear 8.78 GW (1.81%)
Large Hydro 49.38 GW (10.19%)
RE 184.62 GW (38.08%)
Total 484.82 GW (100%)

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