Renewable Energy Surpasses Coal Globally

Summary of Key Developments in Renewable Energy and Electricity Sector

1. Global Energy Trends:

• For the first time, renewable energy has surpassed coal as the world’s leading source of electricity.
• In early 2025, renewables accounted for 34.3% of global electricity generation, while coal dipped to 33.1%.
• Electricity demand globally grew by 2.6% in the first half of 2025, driven fully by increases in solar (31%) and wind (7.7%) generation.

2. India’s Renewable Energy Landscape:

• As of June 2025, India’s non-fossil fuel sources constituted 50.1% of its installed electricity capacity.
• Installed capacity data:
  • Total installed capacity: 485 GW.
  • Renewables (solar, wind, small hydro, biogas): 185 GW.
  • Large hydro: 49 GW; Nuclear: 9 GW.
  • Thermal power (coal & gas): 49.9% at 242 GW, down from 70% in 2015.
• India's commitment under the Paris Agreement (2015) was to achieve 40% non-fossil fuel capacity by 2030, later raised to 50% in 2022.

3. Emission Trends:

• India's CO2 emissions from the power sector showed a marginal decline for the first half of 2025.
• The decline was attributed partly to improved weather conditions and the increasing share of renewables.

4. Challenges in the Transition:

• The rapid growth in renewables has led to grid instability due to the lack of adequate energy storage systems and thermal power support.
• Distribution companies face losses, leading to challenges with electricity supply management.

5. Government Policy Responses:

• The Indian government has initiated policy reforms to enhance energy storage and stabilize the grid.
• Recent measures include:
  • Advisory by Central Electricity Authority to co-locate energy storage with solar projects.
  • Expansion of the viability gap funding (VGF) for battery storage to 43 GWh, with an outlay of Rs 5,400 crore.
  • New pumped hydro projects expected to reach 51 GW by 2032.
  • Extension of inter-state transmission system (ISTS) waivers for storage projects until June 2028.

6. International Energy Agency (IEA) Insights:

• IEA predicts global renewables could more than double by the decade's end, with solar power expected to contribute approximately 80% of new clean energy capacity.
• China is expected to remain the largest market for renewables, with India emerging as the second-largest.

7. Judicial and Constitutional Context:

• India’s push towards renewable energy aligns with constitutional principles and rights to a clean environment and sustainable development as enshrined in Article 21 and the Directive Principles of State Policy (DPSPs), reflecting the government's commitment to environmentally responsible energy generation.

Conclusion:

The transition to renewable energy is a crucial development for India and globally, underscored by significant government initiatives and challenges in energy management. The increase in renewable capacity and corresponding decline in coal use mark a pivotal shift in the global energy landscape, driven by policy adaptations, technological advancements, and international commitments.