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Knowledge Nugget: India’s ‘green’ power capacity overtakes thermal — What you must know for UPSC Exam

Non-fossil fuels now make up 50.1% of India’s installed power capacity—five years ahead of the target. Let’s understand this key UPSC current affairs topic by linking it with relevant static concepts in a simplified way. Also, go 'Beyond the Nugget' to know about India's Nationally Determined Contribution (NDC) and progress.

Take a look at the essential events, concepts, terms, quotes, or phenomena every day and brush up your knowledge. Here’s your UPSC current affairs environment knowledge nugget for today on India’s ‘green’ power capacity.

Knowledge Nugget: India’s ‘green’ power capacity overtakes thermal

Subject: Environment

Why in the news?

India has reached a key climate milestone five years ahead of schedule — as of June 30, non-fossil fuel sources account for 50.1 per cent of the country’s installed electricity capacity. When the Paris Agreement on climate change was signed in 2015, India had committed to reaching 40 per cent non-fossil fuel capacity by 2030. This target was raised to 50 per cent in 2022.

Key Takeaways :

1. The sources — which include nuclear, large hydro, and renewables — made up just 30 per cent of installed capacity in 2015 and 38 per cent in 2020, before rising sharply over the last five years, on the back of solar and wind power.

2. As of June, India’s total installed capacity stood at 485 gigawatts (GW). Of this, renewables — including solar, wind, small hydro, and biogas — accounted for 185 GW, according to a press release by the Ministry of New and Renewable Energy (MNRE).

3. Large hydro capacities contributed 49 GW, and nuclear energy added 9 GW, taking the total non-fossil fuel capacity just over the halfway mark. Thermal power, mostly coal- and gas-based, made up the remaining 242 GW, or 49.9 per cent. In 2015, thermal’s share was 70 per cent.

Installed Capacity

Thermal

Non-fossil fuel

Grand Total

Non-fossil fuel share (%)

Nuclear

Large hydro

Renewables*

June 2015

191.26

5.78

42

35.78

274.82

30.4

June 2020

230.9

6.78

45.7

87.67

371.05

37.8

June 2025

242.04

8.78

49.38

184.62

484.82

50.1

*Solar, wind, small hydro, biomass. (Source: Ministry of New and Renewable Energy, CEA)

(Note: To view the complete table please scroll or swipe to the right)

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4. Notably, in 2024, India ranked fourth globally in renewable installed capacity, including large hydro, behind only China, the US, and Brazil. 

5. The rise in contribution of renewables to India’s energy mix marks a significant shift, driven by the rapid addition of solar and wind power in recent years. However, installed thermal capacity falling below the halfway mark does not mean India’s reliance on thermal power has dipped below 50 per cent. On the contrary, since renewable sources such as solar and wind are intermittent and cannot generate power around the clock, thermal plants still produce over 70 per cent of the country’s electricity.

6. Bringing down thermal’s share in power generation — and hitting India’s 500 GW non-fossil fuel target by 2030 — will require much more, starting with the stabilisation and strengthening of the grid.

With renewables now contributing 185 GW to India’s total installed power capacity, let’s understand what the different types of renewable energy sources are.

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Types of Renewable Energy

1. Solar Energy: Solar energy is harnessed from the sun’s radiation. It can be transformed into electricity using solar panels (photovoltaic cells) or alternatively can be utilised to produce heat through solar thermal systems. Due to its abundance, solar power stands out as one of the most widely available renewable energy sources. China, the US, India and Japan are among the world’s leading producers of solar power.

2. Hydropower: It is created by harnessing the kinetic energy of flowing water in rivers, dams, waterfalls, etc. It is one of the oldest and most widely used forms of renewable energy.

3. Biomass Energy: Biomass is produced from organic materials such as plant residues, animal waste, and wood. It can be heated or converted to liquid or gaseous fuels for consumption. Its usage includes heating, electricity generation, or biofuels for transportation. It is considered renewable because the materials used can be regrown or replenished.

4. Wind Energy: It is generated by converting the kinetic energy of wind into electricity using wind turbines. Onshore and offshore wind farms have become a significant contributor to the renewable energy mix in many countries like China, India and the US.

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5. Geothermal Energy: This form of energy is derived from the Earth’s internal heat. These can be naturally occurring hot water reservoirs or can be man-made. Occurring at various depths and varying temperatures below the earth’s surface, these geothermal resources can be used for electricity generation and direct heating applications. Geothermal power plants which produce electricity, typically utilise steam or hot water from underground reservoirs.

6. Tidal and Wave Energy: It harnesses the movement of ocean water to generate electricity. Tidal energy relies on the gravitational pull of the moon and the sun, whereas wave energy captures the energy of surface waves.

  1. 01

    What are the top 10 countries leading energy transition?

    The Energy Transition Index (ETI) 2024, released by the World Economic Forum, ranked 120 countries based on their advancements towards a sustainable, affordable, and secure energy future. Here are the countries leading the way in energy transition, as reported by the World Economic Forum.

    Rank Country ETI Score’24 System Performance’24 Transition Readiness’24
    1 Sweden 78.4 79.4 76.8
    2 Denmark 75.2 72.0 80.1
    3 Finland 74.5 76.2 69.1
    4 Switzerland 73.4 71.1 62.2
    5 France 71.1 74.7 65.6
    6 Norway 69.9 75.2 62.0
    7 Iceland 68 71.8 62.2
    8 Austria 67.9 68.5 67.0
    9 Estonia 67.8 73.7 59.0
    10 Netherlands 66.7 62.7 72.7

    Source: ETI 2024, WEF

    India has ranked 63rd out of 120 countries in the 2024 Global Energy Transition Index, which is an improvement from its previous position of 67th in 2023.

  2. 02

    What are the bottom 10 countries in energy transition?

    The Bottom 10 Countries in WEF's energy transition index:

    Rank Country ETI score System Performance’24 Transition Readiness’24
    110 Jamaica 46.6 50.3 41.1
    111 Senegal 46.6 53.3 36.5
    112 Zimbabwe 46.3 50.7 39.7
    113 Pakistan 46.2 55.2 32.5
    114 Nicaragua 46.0 57.7 28.6
    115 Botswana 45.6 54.3 32.7
    116 Mongolia 45.4 55.3 30.5
    117 Mozambique 45.3 57.0 27.8
    118 Tanzania 44.3 49.7 36.1
    119 Yemen. 43.8 55.1 26.8
    120 Democratic Republic of Congo 42.0 53.7 24.4

    Source: ETI 2024, WEF

BEYOND THE NUGGET: India’s Nationally Determined Contribution (NDC) and Progress

1. On October 2, 2015, India submitted its first Nationally Determined Contribution (NDC) to the United Nations Framework Convention on Climate Change (UNFCCC). It became a signatory to the UNFCCC and its Paris Agreement – an international treaty adopted in 2015, which operates on a five-year cycle of increasingly ambitious climate action plans known as NDC.

2. India’s Nationally Determined Contribution (NDC) initially included two main goals: First, to reduce the emissions intensity of its GDP by 33-35 per cent by 2030 from 2005 level, and second, to achieve about 40 per cent of its total installed electric power capacity from non-fossil fuel energy resources by 2030.

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3. In August 2022, India updated these targets: The goal for reducing the emissions intensity of GDP was increased to 45 per cent by 2030 from 2005 level, and the target for non-fossil fuel-based energy capacity was raised to 50 per cent by 2030.

4. In addition, India has set itself a target of achieving 500 GW of renewable energy capacity by the year 2030 (as announced by Prime Minister Narendra Modi at the COP26 summit in Glasgow, UK). Furthermore, India is potentially aiming for 1 TW (form 500 GW) by 2035. India has also set a target of achieving net-zero carbon emissions by 2070.

Major Government schemes to achieve renewable energy targets

India has implemented various schemes to achieve its renewable energy targets. Some of the key schemes that have contributed to this include:

📌Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan scheme (PM-KUSUM): This scheme promotes the installation of small grid-connected solar power plants, standalone solar pumps, and solarisation of existing grid-connected pumps in rural areas.

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📌PM Surya Ghar: Muft Bijli Yojana: It is a government project aimed at providing free power to Indian families. Launched on February 15, 2024, the initiative would give homes with a rebate for installing solar panels on their roofs. The subsidy will pay for up to 40% of the cost of the solar panels. The plan is anticipated to benefit one crore households in India. The scheme will promote the use of renewable energy.

📌Grid Connected Rooftop Solar program (Pradhan Mantri Suryodaya Yojana): Under this scheme, solar PV panels are installed on the roof of a building to meet the electricity needs of the building. Surplus solar power units generated from the rooftop solar plant can also be exported to the grid.

📌Green Energy Corridor Scheme: The series of infrastructure projects under this scheme aimed at synchronising the power generated from renewable energy sources with the national grid of India.

📌National Green Hydrogen Mission (NGHM): The Ministry of New and Renewable Energy (MNRE) implemented the NGHM with a target to achieve a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030. This will support an addition of about 125 GW of renewable energy capacity in our country.

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Post Read Question

Consider the following statements about Solar Power (PM Surya Ghar Muft Bijli Yojana):

1. The scheme was launched in 2022.

2. Under the scheme, households will be provided with a subsidy cover of 40 per cent to install solar panels on their roofs.

3. The scheme will promote the use of renewable energy.

How many of the statements given above is/are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

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Roshni Yadav is a Deputy Copy Editor with The Indian Express. She is an alumna of the University of Delhi and Jawaharlal Nehru University, where she pursued her graduation and post-graduation in Political Science. She has over five years of work experience in ed-tech and media. At The Indian Express, she writes for the UPSC section. Her interests lie in national and international affairs, governance, economy, and social issues. You can contact her via email: roshni.yadav@indianexpress.com ... Read More

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