India has significantly expanded its power generation capacity over the past five years, with installed capacity increasing by nearly 36 per cent, largely driven by rapid growth in renewable energy, according to a report released by the Reserve Bank of India (RBI).
The report noted that 2025 emerged as a landmark year for India’s clean energy transition, as the country achieved its highest-ever annual addition to renewable energy capacity.
This surge was led mainly by a sharp increase in solar power installations, supported by strong government policies and rising participation from the private sector in the renewable energy sector.
“Installed power capacity has increased by nearly 36 per cent over the past five years, largely driven by the expansion of renewable energy. In 2025, India recorded its highest-ever annual addition to renewable energy capacity, primarily led by a surge in solar installations,” the report said.
Data from the Central Electricity Authority (CEA), cited in the report, showed a steady rise in annual renewable energy capacity additions. Additions increased from 5.6 gigawatt (GW) in 2020 to 14.4 GW in 2021 and 16.4 GW in 2022. While capacity additions eased slightly to 13.0 GW in 2023, growth accelerated thereafter, with 28.6 GW added in 2024 and a record 48.6 GW in 2025.
In comparison, additions to fossil fuel-based power capacity remained relatively low during the same period, reflecting a gradual shift in India’s energy mix. Fossil fuel capacity additions ranged between about 1 GW and 4 GW annually, while nuclear capacity additions were limited but consistent.
The report noted that nuclear power capacity saw modest additions from 2023 onwards, signalling renewed efforts to diversify clean energy sources beyond renewables.
According to the RBI, India’s clean energy expansion is aligned with its long-term climate commitments and energy security objectives. The growth of renewable energy has helped meet rising electricity demand while reducing reliance on fossil fuels.
The report also highlighted recent policy measures aimed at strengthening the nuclear energy sector. Initiatives such as the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill 22, 2025, and the Nuclear Energy Mission are expected to provide a major boost to nuclear power capacity.
Under these initiatives, India has set a target of increasing its nuclear power capacity to 100 GW by 2047.
Overall, the RBI report underscored that India’s power sector is undergoing a structural shift, with renewable energy emerging as the primary driver of capacity expansion.
The record capacity additions in 2025 reflect strong momentum in India’s clean energy transition, positioning the country to meet its future energy requirements in a sustainable way.
