Energy & Climate
Renewable capacity, solar, green hydrogen, net-zero commitments, and electrification.
Topics in this section
Renewables Capacity
1Solar
2Green Hydrogen
1Net-Zero Commitments
1Electrification
3Headline figures
Context & shortfalls
EV registrations include 2-wheelers (~60%), 3-wheelers (~30%), and cars/buses (~10%) by volume. 2W and 3W EVs dominate due to FAME-II subsidies and lower purchase price. India's EV penetration in new sales: 2W ~5%, 3W ~55%, cars ~2.4% (FY2024). Tata Motors leads the EV car segment. PLI scheme for Advanced Chemistry Cell batteries and EV components is building the supply chain. Charging infrastructure expansion is critical for 4W adoption. Source ↗
Context & shortfalls
GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) was launched in 2018 as a small pilot. The Cabinet approved a dedicated Unified CBG scheme in August 2026 with ₹23,731 crore outlay for 2026-37, targeting a ten-fold scale-up in domestic Compressed Biogas production. As of July 2026: 217 plants operational with ~1,773 tonnes/day capacity. CBG is produced from agricultural residue, cattle dung, municipal solid waste, and sewage — converting waste to clean fuel while reducing stubble burning and open defecation. Each plant generates both energy and bio-slurry organic fertiliser. Source ↗
Context & shortfalls
National Green Hydrogen Mission approved January 2023 — target: 5 MMTPA green hydrogen production capacity by 2030 with ₹19,744 crore outlay. India aims to become a global green hydrogen hub for export. As of 2024, production is in pilot/nascent stage (a few hundred MT); electrolyser manufacturing capacity is being set up. Green hydrogen requires renewable electricity + water electrolysis; cost parity with grey hydrogen requires electrolyser costs to fall ~60% from 2023 levels. Source ↗
Context & shortfalls
India committed to net-zero by 2070 at COP26 (November 2021) — 10 years after China (2060) and 20 years after the US/EU (2050). NDC interim targets (2030): 500 GW non-fossil fuel capacity, 50% cumulative electricity from non-fossil sources, 45% reduction in emissions intensity of GDP vs 2005. India updates NDC every 5 years. Carbon credit market (CCTS framework) launched 2023. Finance for adaptation (loss & damage) remains contested at UNFCCC. India's per-capita emissions remain among the lowest of major economies at ~1.9 t CO2e. Source ↗
Context & shortfalls
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) was approved on 11 September 2024 with ₹10,900 crore outlay over two years (FY2024-26), replacing the FAME-II scheme that ended March 2024. Covers: e-2Ws (24.79 lakh units), e-3Ws (3.16 lakh), e-buses (14,028), e-ambulances, and e-trucks. Subsidy is demand-incentive: ₹5,000/kWh for 2Ws, ₹10,000/kWh for 3Ws and buses. ₹2,000 crore earmarked for 22,100 public EV charging stations across highways and cities. Unlike FAME-II, PM E-DRIVE is linked to a 'battery-as-a-service' model and requires minimum 50% domestic value addition (DVA) — pushing localisation of cells and motors. Source ↗
Context & shortfalls
Launched 29 February 2024 with ₹75,021 crore budget targeting 1 crore households by 31 March 2027. Provides up to 300 units of free electricity per month via rooftop solar and a one-time subsidy of ₹30,000–₹78,000 per household. As of 20 August 2026: 21.05 lakh applications received, 12 lakh RTS installations completed, 14.3 lakh households benefited. Progress (14%) relative to the 1 crore target is behind pace — scheme has ~19 months remaining. Source ↗
Context & shortfalls
Includes solar, wind, small hydro, and bioenergy. Large hydro (>25 MW) tracked separately. In 2004, capacity was almost entirely wind and small hydro (~3 GW + 2.5 GW). Solar accelerated sharply after JNNSM (2010) and now dominates additions. India's 2030 NDC target is 500 GW non-fossil fuel capacity. Grid balancing and storage investment will be critical as intermittent share rises above 30%. Source ↗
Context & shortfalls
Samudra Manthan is a national deepwater oil and gas exploration programme approved by the Cabinet in 2025-26 with a ₹84,084 crore ($8.8 billion) outlay. It provides up to 50% cost subsidy for drilling deepwater and ultra-deepwater wells — dramatically de-risking exploration in India's 3.1 million sq km of exclusive economic zone (EEZ), less than 10% of which has been explored. Target: accretion of 600 MMTOE in new hydrocarbon reserves. India imports ~85% of its crude oil needs (spending $160+ billion/year in FY2025-26) — domestic offshore finds could meaningfully reduce import dependence. Named after the mythological churning of the ocean, the scheme was designed alongside the OALP rounds to attract international majors. Source ↗
Context & shortfalls
Baseline is 2010 — the year the Jawaharlal Nehru National Solar Mission (JNNSM) launched, when installed solar capacity was negligible (<10 MW). India's 100 GW solar target (originally 2022) was achieved by late 2024. The 2030 NDC target is 500 GW non-fossil fuel capacity. Utility-scale solar dominates new additions; distributed rooftop solar (~35 GW) and the PM Surya Ghar scheme form a growing segment. Land acquisition and grid integration remain challenges at scale. Source ↗
Context & shortfalls
India's wind sector was growing steadily from 2004. Addition pace slowed after 2018 due to land acquisition, grid connectivity, and competitive tariff challenges. Tamil Nadu, Gujarat, Rajasthan, Maharashtra are top states. Offshore wind (potential: 70+ GW on Gujarat/Tamil Nadu coasts) remains nascent. Re-powering older turbines with higher-capacity units is a growing policy priority. Source ↗