Renewables Drive 36% Rise In India’s Installed Power Capacity Over 5 Years: RBI

New Delhi, Jan 23 (KNN) India has expanded its installed power generation capacity by nearly 36 per cent over the past five years, largely driven by rapid growth in renewable energy, according to a report released by the Reserve Bank of India (RBI). 

The report said 2025 marked a milestone in India’s clean energy transition, with the country recording its highest-ever annual addition to renewable power capacity.

The RBI noted that the sharp rise was mainly led by a surge in solar power installations, supported by favourable policies and increased participation from the private sector, reported ANI. 

Record Capacity Additions in 2025

Citing data from the Central Electricity Authority (CEA), the report showed a steady increase in annual renewable capacity additions over recent years. 

Renewable additions rose from 5.6 gigawatts (GW) in 2020 to 14.4 GW in 2021 and 16.4 GW in 2022. While additions eased to 13.0 GW in 2023, growth accelerated thereafter, with 28.6 GW added in 2024 and a record 48.6 GW in 2025.

Slower Growth in Fossil Fuel Capacity

In comparison, additions to fossil fuel-based power capacity remained modest during the same period, ranging between about 1 GW and 4 GW annually. Nuclear capacity additions were limited but stable, with small increases beginning in 2023, pointing to a gradual diversification of clean energy sources beyond renewables.

Policy Push for Nuclear Energy

The RBI report said India’s clean energy expansion is aligned with its long-term climate commitments and energy security objectives. 

Alongside renewables, recent policy measures are aimed at strengthening the nuclear energy sector. These include the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill 22, 2025, and the Nuclear Energy Mission, under which India plans to raise its nuclear power capacity to 100 GW by 2047.

Structural Shift in the Power Sector

Overall, the report highlighted a structural transformation in India’s power sector, with renewable energy emerging as the main driver of capacity growth. 

(KNN Bureau)