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MoneyWireEconSurvey: India diversifying its energy sources, but challenges remain
EconSurvey

India diversifying its energy sources, but challenges remain

This story was originally published at 19:49 IST on 29 January 2026
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Informist, Thursday, Jan. 29, 2026

 

NEW DELHI – India is adopting a multifaceted approach to mitigate global warming by diversifying its energy sources and increasing the share of non-fossil fuels, but challenges such as want of investments remain, the Economic Survey for 2025-26 (Apr-Mar) has said.

 

The country has already surpassed the goal of 50% installed power capacity from non-fossil fuel sources, which stood at 51.93% at the end of December, supported by fast annual additions of renewable energy capacity, the Survey, released Thursday, said. During Apr-Dec, a total of 38.61 GW of renewable energy capacity has been installed, which includes 30.16 GW of solar power, 4.47 GW of wind power, 0.03 GW of bio-power and 3.24 GW of hydro power.

 

These strategies align with the nation's development and sustainability objectives. A comprehensive range of policies has been implemented to achieve the 2030 Nationally Determined Contributions targets.

 

According to the International Renewable Energy Agency's Renewable Energy Statistics 2025, India now ranks fourth globally in total installed renewable energy capacity, trailing behind China, the US, and Brazil.

 

"Despite the progress in expanding non-fossil fuel energy, challenges remain. The renewable energy systems of solar and wind are highly material-intensive and require capital-intensive energy storage technologies for integrating renewable energy into the energy grid," the Survey said.

 

"Material and storage requirements represent the two roadblocks to greater utilisation of these energy sources," it said. Material requirement extends beyond access to critical minerals to mining and energy needs for material processing, it added.

 

"With respect to energy technology, the challenge is not just the need for new technologies, but also the substantial investment requirements," the survey said. End

 

Reported by Asim Khan

Edited by Deepshikha Bhardwaj

 

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