Renewable Energy Surpasses Coal in 2025

Summary of Key Facts and Data on Renewable Energy Developments (2025)

1. Global Energy Trends:

   • Renewable energy surpassed coal as the world’s leading source of electricity for the first time in the first half of 2025.
   • Global electricity demand grew by 2.6% but was entirely met by renewed investments in solar (31% increase) and wind (7.7% increase) energy.

2. India's Energy Landscape:

   • Non-fossil fuel sources accounted for 50.1% of India's installed electricity capacity as of June 30, 2025.
   • Installed capacity of renewables in India reached 185 GW, alongside large hydro (49 GW) and nuclear (9 GW), comprising over 50% of total capacity for the first time—up from 30% in 2015.
   • Thermal power (coal and gas) contributed the remaining 49.9% at 242 GW.

3. Constitutional Reference:

   • Under the Paris Agreement (2015), India committed to achieving 40% of its electricity capacity from non-fossil fuel sources by 2030, which was increased to 50% in 2022.

4. Emissions Data:

   • India’s carbon dioxide emissions from the power sector showed a slight decline, marking a crucial first. The electricity sector remains the largest contributor to the country's CO2 emissions.
   • More than 50% of India’s total carbon emissions arise from coal-based electricity generation.

5. Government Schemes and Policies:

   • Proactive government initiatives include:
     • An advisory by the Central Electricity Authority (CEA) to align energy storage systems with solar projects for enhanced grid stability.
     • Expanded viability gap funding for battery storage: from 13 GWh to a total of 43 GWh with an investment of Rs 5,400 crore.
     • Anticipation of 51 GW of pumped hydro capacity by 2032.
     • Extension of inter-state transmission system (ISTS) waiver for storage projects until June 2028.

6. Economic Indicators and Future Projections:

   • The International Energy Agency (IEA) forecasts that global renewable energy capacity could double by the end of the decade, with projections that 80% of this will come from solar power.
   • China is set to remain the largest market for renewable energy, with India projected to be the second-largest growth market.

7. Global Coal Market Dynamics:

   • Coal's share in global electricity generation fell to 33.1%, while renewable energy's share increased to 34.3% in 2025.
   • Temporary coal demand dips were noted in India, while more structural declines were observed in China.

8. Challenges in India's Energy Transition:

   • Despite increasing renewable capacity, stability issues in the electricity grid have arisen due to the lack of energy storage solutions, particularly during high demand periods when solar generation decreases.
   • The financial mismanagement in distribution companies (discoms) continues to be a significant concern.

This summary highlights India's efforts and challenges in the transition towards a more sustainable energy future, indicating both significant progress and critical hurdles that must be overcome.