India is emerging as one of the world’s most significant clean energy growth engines, with rapid expansion in solar power strengthening the country’s position in the global energy transition, according to Ember’s Global Electricity Review 2026.

The report said India recorded one of the strongest increases in renewable electricity generation in 2025, underscoring its growing importance as one of the world’s largest and fastest-growing power markets. As electricity demand continues to rise, India’s energy choices are expected to play an increasingly important role in shaping global emissions trends.

Solar Power Drives Renewable Expansion

According to the report, solar energy was the standout performer in India’s electricity sector in 2025, supported by rapid capacity additions, favourable government policies, lower module prices and the expansion of utility-scale projects.

India has already crossed several renewable energy milestones and remains committed to achieving 500 GW of non-fossil fuel capacity by 2030. Solar energy is expected to account for the largest share of this target through utility-scale projects, rooftop installations, solar parks and hybrid renewable developments.

Industry experts cited in the report noted that solar power has evolved beyond an environmental initiative and is increasingly becoming an economic imperative, with solar electricity emerging as one of the most affordable sources of new power generation in the country.

Rising Electricity Demand Presents Opportunities and Challenges

The report noted that electricity consumption in India is growing faster than in most major economies, driven by expanding industrial activity, increasing use of air conditioning and cooling systems, growth in digital infrastructure and data centres, and rising agricultural power requirements.

Unlike many developed economies where power demand has stabilised, India’s electricity consumption is expected to rise significantly over the coming decade. This presents the dual challenge of expanding clean energy capacity while ensuring reliable and affordable electricity supply.

According to the report, renewable energy is increasingly meeting a larger portion of new demand growth, helping moderate the country’s dependence on fossil fuels.

Coal Continues to Support Grid Reliability

Despite the rapid growth of renewable energy, coal remains central to India’s electricity system, the report said.

Coal-fired power plants continue to provide grid stability, particularly during periods when solar output falls after sunset or when seasonal variations affect renewable generation. Policymakers continue to regard coal as an important component of the country’s energy security framework as renewable capacity expands.

Analysts said India’s energy transition is likely to be gradual, with renewable sources progressively reducing the share of fossil fuel generation rather than replacing it abruptly.

Energy Storage Emerges as a Critical Requirement

The report identified energy storage as one of the most important factors that will determine the future pace of renewable energy growth in India.

As solar capacity expands, storing electricity generated during the day for use during evening peak hours will become increasingly important. Battery Energy Storage Systems (BESS), pumped hydro projects and emerging long-duration storage technologies are expected to play a key role in this transition.

According to the report, integrating very high levels of renewable energy into the grid could become more difficult without significant investments in storage infrastructure.

The Government of India has already introduced several initiatives aimed at promoting battery storage projects, recognising their importance in achieving long-term renewable energy goals.

Transmission Networks Need Further Strengthening

The report also highlighted the need for substantial investments in transmission infrastructure.

Many of India’s key solar and wind resources are concentrated in states such as Rajasthan, Gujarat, Tamil Nadu and Karnataka, which are located far from major consumption centres. Strengthening interstate transmission networks will be essential for efficiently distributing electricity across the country.

While Green Energy Corridor projects are helping address these challenges, experts believe transmission expansion will need to accelerate as India moves closer to its 2030 renewable energy targets.

Grid modernisation, digital monitoring systems and improved forecasting capabilities are also expected to become increasingly important for maintaining system reliability.

Green Hydrogen Opens New Growth Opportunities

The report noted that India’s renewable energy expansion is creating opportunities for entirely new industries, particularly through the National Green Hydrogen Mission.

Green hydrogen is expected to play an important role in decarbonising hard-to-abate sectors and could significantly increase future demand for renewable electricity. India’s ambition to establish itself as a global green hydrogen hub is expected to create fresh investment opportunities throughout the clean energy value chain.

Domestic Manufacturing Gains Importance

The report underlined the growing significance of domestic manufacturing in supporting India’s energy transition.

The country has been promoting local production to reduce import dependence, strengthen supply chains and generate employment opportunities while accelerating renewable energy deployment.

Government initiatives, including the Production Linked Incentive (PLI) scheme, have helped boost investments in renewable energy manufacturing facilities across India.

India’s Role in the Global Energy Transition Expands

One of the key conclusions of Ember’s Global Electricity Review 2026 is that India’s energy transition now has implications far beyond its borders.

As one of the world’s largest electricity markets, India’s progress in expanding renewable energy capacity is expected to influence global climate outcomes, technology costs and investment patterns.

The report said international energy analysts increasingly view India as a critical example of how developing economies can pursue economic growth, improve energy access and advance decarbonisation simultaneously.

It concluded that while India has built strong momentum in renewable energy deployment, particularly in solar power, the next phase of the transition will require equal emphasis on storage, transmission infrastructure, grid flexibility and market reforms.

According to the report, strengthening these supporting systems alongside generation capacity could help India emerge as one of the world’s largest clean energy economies while enhancing energy security, reducing dependence on fossil fuel imports and supporting sustainable economic growth.

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