India’s Power Mix 2025: Coal Dominates, Renewables Rising Fast
Author
Nepsetrading

India’s electricity generation mix in 2025 reflects a complex and evolving structure where fossil fuels, particularly coal, continue to dominate, but renewable sources are gaining significant traction. According to data from NITI Aayog, India’s total installed electricity generation capacity has reached 470 gigawatts (GW). Coal alone accounts for 221,605 megawatts (MW), which is 47.2% of the total capacity. This heavy reliance on coal illustrates India’s ongoing dependency on a traditional energy source that, while affordable and locally abundant, poses environmental challenges. Coal remains the primary contributor to India's base-load power supply due to its reliability and the country’s vast coal reserves. However, it also stands as the largest contributor to the country's greenhouse gas emissions, presenting a substantial roadblock to India’s pledge to reach carbon neutrality by 2070.
Despite the dominance of coal, there has been a remarkable growth in renewable energy. Solar power now contributes 102,460 MW or 21.8% of the national capacity. This surge is a result of substantial government investment, policy incentives, and falling costs of solar technologies. From expansive solar parks to rooftop installations, solar energy is reshaping the Indian power sector, especially in high-irradiance states like Rajasthan, Gujarat, and Madhya Pradesh. Following closely is wind energy, which supplies 48,551 MW, making up 10.3% of the capacity. Wind power has seen steady adoption in coastal and western states like Tamil Nadu and Gujarat, with both onshore and offshore developments in progress. Together, solar and wind highlight India’s shift toward clean and sustainable energy.
Hydropower contributes another significant share to the grid with 46,483 MW, or 9.9% of the capacity, and small-hydro projects add 5,076 MW. Hydropower, being a mature and stable renewable source, plays a key role in grid balancing and peak demand support. However, further expansion is often limited by environmental regulations and displacement issues associated with large dam construction. Additionally, India harnesses 11,421 MW from biomass-based power generation, which offers a sustainable way to utilize agricultural waste and reduce dependence on fossil fuels in rural areas.
Nuclear energy accounts for 8,178 MW of capacity. While nuclear power provides low-carbon, base-load electricity, its growth has been modest due to high capital costs, safety concerns, and long construction timelines. Meanwhile, oil and gas-based plants contribute 25,756 MW or 5.5% of total capacity, often serving as backup during peak demand periods or when renewables underperform. Although gas is cleaner than coal, its future in India’s energy landscape remains uncertain due to high import dependence and price volatility.
India’s power generation mix clearly indicates a dual strategy—maintaining energy security through coal while aggressively expanding renewable sources. However, the transition is not without challenges. Solar and wind, while clean, are intermittent and require robust energy storage and grid integration infrastructure. Furthermore, regional disparities, land acquisition hurdles, and outdated transmission systems hinder faster renewable adoption. Policy frameworks and financial incentives need to evolve to facilitate a smoother transition.
In conclusion, India’s electricity generation scenario in 2025 is a tale of two paths: one that continues to rely on coal and another that aspires for a sustainable future through renewables. While coal still reigns as the largest energy source, solar and wind are catching up fast. With a growing population and rising electricity demand, India is navigating a delicate balancing act—ensuring reliable energy access while trying to meet its climate commitments. The next decade will be critical in determining whether India can decouple economic growth from environmental degradation and emerge as a global leader in green energy transformation.