{
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 "slug": "energy-policy-of-india",
 "title": "Energy policy of India",
 "updated": "2026-10-15",
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 "excerpt": "India's energy policy governs how India's central and state governments manage energy production, pricing, and decarbonization, pursuing 500 GW of non-fossil capacity by 2030 and net zero by 2070.",
 "snippet": "India's energy policy governs how India's central and state governments manage energy production, pricing, and decarbonization, pursuing 500 GW of non-fossil capacity by 2030 and net zero by 2070.",
 "node": "technology.energy.energy.policy",
 "markdown": "# Energy policy of India\n\nEnergy policy of India is the set of laws, plans, institutions and programs by which the central and state governments govern the production, pricing, distribution and decarbonization of energy in India, a federal system in which electricity is a concurrent constitutional subject and coal remains the single largest energy source even as non-fossil sources have passed half of installed capacity. The policy pursues headline targets of 500 GW of non-fossil capacity by 2030 and net zero emissions by 2070.<sup>[4](https://www.mospi.gov.in/uploads/publications_reports/publications_reports1776236408576_e41fac2e-cde2-4002-9055-aa42a4140c25_Energy_Statistics_India_2026_Final.pdf)</sup>\n\n| Key fact | Detail |\n|---|---|\n| Installed capacity | 490,061 MW at 31 July 2025: coal 216,448 MW (44.2%), solar 119,017 MW (24.3%), wind 52,140 MW (10.6%), hydro 49,628 MW (10.1%), gas 20,132 MW (4.1%), nuclear 8,780 MW (1.8%)<sup>[1](https://powermin.gov.in/sites/default/files/uploads/power_sector_at_glance_July_2025.pdf)</sup> |\n| Non-fossil share | 246,271 MW, 50.3% of installed capacity at 31 July 2025; 283.46 GW by 31 March 2026<sup>[1](https://powermin.gov.in/sites/default/files/uploads/power_sector_at_glance_July_2025.pdf)</sup><sup> • </sup><sup>[2](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2250039&lang=2&reg=3)</sup> |\n| Generation | 1,805 TWh in 2023, a record, with coal at 71.3% of generation<sup>[3](https://www.eia.gov/international/content/analysis/countries_long/India/pdf/India.pdf)</sup> |\n| Headline targets | 500 GW non-fossil capacity by 2030; net zero by 2070; 100 GW nuclear by 2047<sup>[4](https://www.mospi.gov.in/uploads/publications_reports/publications_reports1776236408576_e41fac2e-cde2-4002-9055-aa42a4140c25_Energy_Statistics_India_2026_Final.pdf)</sup><sup> • </sup><sup>[5](https://www.powermin.gov.in/static/uploads/2026/06/0593dd0f9b721abdb5227d7ddf5ca439.pdf)</sup> |\n| Per-capita use | 1,153 kWh/person in FY 2024-25, up 48% from 780 kWh in FY 2015-16; roughly one-tenth of the US level<sup>[4](https://www.mospi.gov.in/uploads/publications_reports/publications_reports1776236408576_e41fac2e-cde2-4002-9055-aa42a4140c25_Energy_Statistics_India_2026_Final.pdf)</sup><sup> • </sup><sup>[6](https://niti.gov.in/sites/default/files/2026-02/Scenarios-Towards-Viksit-Bharat-and-Net-Zero-Sectoral-Insights-Power.pdf)</sup> |\n| Discom finances | AT&C losses fell from 21.91% (FY21) to 15.04% (FY25); first aggregate profit after tax of Rs 27.01 billion (Rs 2,701 crore) in FY25<sup>[7](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2293896&lang=2&reg=48)</sup> |\n| Coal's role | Coal India produces 81% of India's coal; coal supplied 59.21% of primary energy in FY 2024-25<sup>[8](https://niti.gov.in/sites/default/files/2025-07/Report-on-India-Renewable-Electricity-Roadmap-2030.pdf)</sup><sup> • </sup><sup>[4](https://www.mospi.gov.in/uploads/publications_reports/publications_reports1776236408576_e41fac2e-cde2-4002-9055-aa42a4140c25_Energy_Statistics_India_2026_Final.pdf)</sup> |\n\n## Institutional framework\n\nElectricity is a concurrent subject under Entry 38 of List III of the Constitution, so both state and central governments hold jurisdiction, and coordination between them remains a work in progress.<sup>[8](https://niti.gov.in/sites/default/files/2025-07/Report-on-India-Renewable-Electricity-Roadmap-2030.pdf)</sup> Responsibility is split across ministries: the [Ministry](https://www.edgepedia.org/ministry-government-department) of Power sets national power policy; the [Ministry of New and Renewable Energy](https://www.edgepedia.org/ministry-of-new-and-renewable-energy) handles renewables; the Ministry of Coal, Ministry of Finance, and Ministry of Environment each hold parts of the portfolio, with [NITI Aayog](https://www.edgepedia.org/niti-aayog) providing scenario analysis.<sup>[3](https://www.eia.gov/international/content/analysis/countries_long/India/pdf/India.pdf)</sup><sup> • </sup><sup>[8](https://niti.gov.in/sites/default/files/2025-07/Report-on-India-Renewable-Electricity-Roadmap-2030.pdf)</sup>\n\n**Planning machinery.** Section 3(4) of the Electricity Act, 2003 requires the Central Electricity Authority (CEA) to prepare a National Electricity Plan in accordance with the National Electricity Policy and notify it once every five years.<sup>[9](https://cea.nic.in/wp-content/uploads/irp/2023/05/NEP_2022_32_FINAL_GAZETTE-1.pdf)</sup> The Ministry of Power drafts the policy in consultation with the CEA and state governments; the CEA translates it into the operational plan, and under the draft NEP 2026 would also consolidate state and utility Resource Adequacy plans into a national plan.<sup>[10](https://www.impriindia.com/centres/center-for-environment-climate-change-and-sustainable-development/national-electricity-policy-in-india-2026/)</sup> Each state's State Electricity Regulatory Commission sets rates and ensures reliability within its borders, while distribution companies and State Load Despatch Centres implement on the ground.<sup>[3](https://www.eia.gov/international/content/analysis/countries_long/India/pdf/India.pdf)</sup><sup> • </sup><sup>[10](https://www.impriindia.com/centres/center-for-environment-climate-change-and-sustainable-development/national-electricity-policy-in-india-2026/)</sup>\n\n**Public enterprises.** Under the Ministry of Power, PGCIL owns the interstate transmission grid, NTPC owns more than 40 GW of thermal capacity, and NHPC about 6 GW of hydro; [Coal India](https://www.edgepedia.org/coal-india) produces 81% of India's coal, and SECI and NTPC procure solar power while REC invests in distribution programs.<sup>[8](https://niti.gov.in/sites/default/files/2025-07/Report-on-India-Renewable-Electricity-Roadmap-2030.pdf)</sup><sup> • </sup><sup>[11](https://ncaer.org/wp-content/uploads/2024/07/IPF2023-Paper-2.pdf)</sup>\n\n## Energy mix and capacity\n\nThe capacity mix has shifted decisively since 2020. At 31 July 2025 total installed capacity was 490,061 MW, of which the private sector held 55.0%, the state sector 22.8%, and the central sector 22.2%; coal was 44.2% and solar alone 24.3%.<sup>[1](https://powermin.gov.in/sites/default/files/uploads/power_sector_at_glance_July_2025.pdf)</sup> By December 2025 total utility-scale capacity reached 514 GW, with fossil-based capacity at 48%, renewables at 50%, and nuclear at 2%.<sup>[6](https://niti.gov.in/sites/default/files/2026-02/Scenarios-Towards-Viksit-Bharat-and-Net-Zero-Sectoral-Insights-Power.pdf)</sup> Renewables' share of installed capacity rose from 29% in 2014-15 to 50% by December 2025, with solar capacity growing over 36 times in that period.<sup>[6](https://niti.gov.in/sites/default/files/2026-02/Scenarios-Towards-Viksit-Bharat-and-Net-Zero-Sectoral-Insights-Power.pdf)</sup>\n\nBy 31 March 2026 non-fossil capacity stood at 283.46 GW: 150.26 GW solar, 56.09 GW wind, 51.41 GW large hydro, 11.75 GW bioenergy, 5.17 GW small hydro, and 8.78 GW nuclear.<sup>[2](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2250039&lang=2&reg=3)</sup> 2023 generation was a record 1,805 TWh, more than three-quarters from fossil fuels, with coal at 71.3%, solar 6.6%, and wind 5.2%.<sup>[3](https://www.eia.gov/international/content/analysis/countries_long/India/pdf/India.pdf)</sup> In primary energy, coal including lignite supplied 59.21% of the 932,816 Ktoe total in FY 2024-25, followed by crude oil at 29.79% and natural gas at 7.12%; a peer-reviewed assessment puts coal at 45% and oil at 24% of total energy supply on its accounting.<sup>[4](https://www.mospi.gov.in/uploads/publications_reports/publications_reports1776236408576_e41fac2e-cde2-4002-9055-aa42a4140c25_Energy_Statistics_India_2026_Final.pdf)</sup><sup> • </sup><sup>[12](https://beta.iopscience.iop.org/article/10.1088/1748-9326/ad7749)</sup>\n\n## Targets and national plans\n\nThe central target, announced by the Prime Minister at COP-26, is 500 GW of non-fossil-based electricity generation capacity by 2030.<sup>[4](https://www.mospi.gov.in/uploads/publications_reports/publications_reports1776236408576_e41fac2e-cde2-4002-9055-aa42a4140c25_Energy_Statistics_India_2026_Final.pdf)</sup> Progress is ahead of schedule on the capacity-share milestone: in June 2025 India sourced 50% of cumulative installed capacity from non-fossil sources, five years ahead of its 2030 NDC commitment, and crossed 250 GW of non-fossil capacity in August 2025.<sup>[13](https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2026/07/20260723515585394.pdf)</sup> The 500 GW absolute figure is further off: India had 212.7 GW of non-fossil capacity in 2024, and 283.46 GW by March 2026, so roughly 217 GW more is needed in under five years.<sup>[14](https://www.renewable-ei.org/pdfdownload/activities/REI_ChinaIndia_2025_EN.pdf)</sup><sup> • </sup><sup>[2](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2250039&lang=2&reg=3)</sup>\n\nThe second net-zero commitment, made at COP26 in Glasgow in 2021, is net zero by 2070; a peer-reviewed assessment notes the commitment is unachievable unless overall coal use is significantly reduced.<sup>[15](https://academic.oup.com/ooenergy/advance-article/doi/10.1093/ooenergy/oiag009/8691500)</sup> India's Cabinet has approved a Nationally Determined Contribution for 2031-2035 to be communicated to the UNFCCC, implemented through the NAPCC and its nine national missions with emphasis on renewables, battery storage, green hydrogen, CCUS, and nuclear energy.<sup>[16](https://pmindia.gov.in/en/news_updates/cabinet-approves-indias-nationally-determined-contribution-2031-2035-to-be-communicated-to-the-united-nations-framework-convention-on-climate-change/)</sup>\n\n**NEP 2026.** The draft revised National Electricity Policy proposes raising per-capita electricity consumption to 2,000 kWh by 2030 and over 4,000 kWh by 2047, and calls for state governments to target single-digit AT&C losses under a multi-year tariff framework.<sup>[5](https://www.powermin.gov.in/static/uploads/2026/06/0593dd0f9b721abdb5227d7ddf5ca439.pdf)</sup> It also records that India has achieved over 250 GW of renewable capacity including 50 GW of large hydro, more than 50% of installed capacity.<sup>[5](https://www.powermin.gov.in/static/uploads/2026/06/0593dd0f9b721abdb5227d7ddf5ca439.pdf)</sup> Planning for variability is built into the National Electricity Plan, which considers around 47 GW of battery energy storage for integration by 2031-32 and a roadmap for 100 GW of pumped storage from 2025-26 to 2035-36.<sup>[7](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2293896&lang=2&reg=48)</sup>\n\n## By the numbers\n\nPer-capita electricity consumption rose from 780 kWh/person in FY 2015-16 to 1,153 kWh/person in FY 2024-25, an increase of about 48% over ten years.<sup>[4](https://www.mospi.gov.in/uploads/publications_reports/publications_reports1776236408576_e41fac2e-cde2-4002-9055-aa42a4140c25_Energy_Statistics_India_2026_Final.pdf)</sup> NITI Aayog puts the figure at about 1,400 kWh, roughly one-tenth of the US level; the two official series differ by scope and year, so both are reported here.<sup>[6](https://niti.gov.in/sites/default/files/2026-02/Scenarios-Towards-Viksit-Bharat-and-Net-Zero-Sectoral-Insights-Power.pdf)</sup> Per-capita total energy consumption rose from 14,682 MJ/person in FY 2014-15 to 18,410 MJ/person in FY 2023-24, up over 25%.<sup>[17](https://www.mospi.gov.in/sites/default/files/publication_reports/Energy_Statistics_2025/Executive%20Summary_27032025.pdf)</sup>\n\n**Subsidies and finance.** In FY25 tariff subsidies accounted for an average of 21% of discoms' revenues, up from 17% in FY21, with revenue from operations recovering around 70% of costs.<sup>[18](https://www.iisd.org/publications/digital-story/mapping-indias-energy-policy-2026)</sup> [Central government](https://www.edgepedia.org/central-government) renewable energy subsidies peaked at INR 264.1 billion (INR 26,406 crore; USD 3 billion) in FY25.<sup>[18](https://www.iisd.org/publications/digital-story/mapping-indias-energy-policy-2026)</sup> Credit flow to the renewable sector grew from ₹16.88 billion (₹1,688 crore) in 2021 to ₹103.2 billion (₹10,325 crore) in 2025, more than a sixfold increase.<sup>[4](https://www.mospi.gov.in/uploads/publications_reports/publications_reports1776236408576_e41fac2e-cde2-4002-9055-aa42a4140c25_Energy_Statistics_India_2026_Final.pdf)</sup> India ranks 4th globally in renewable installed capacity, 4th in wind, and 3rd in solar according to IRENA's 2025 statistics.<sup>[4](https://www.mospi.gov.in/uploads/publications_reports/publications_reports1776236408576_e41fac2e-cde2-4002-9055-aa42a4140c25_Energy_Statistics_India_2026_Final.pdf)</sup>\n\n## Coal and energy security\n\nCoal remains the backbone of the system. Coal India produces 81% of all coal produced in India, and the coal sector supports around 400,000 (4 lakh) formal workers in Coal India Limited and related enterprises, with indirect employment several times higher, concentrated in [Jharkhand](https://www.edgepedia.org/jharkhand), Chhattisgarh, Odisha, West Bengal, and [Madhya Pradesh](https://www.edgepedia.org/madhya-pradesh).<sup>[8](https://niti.gov.in/sites/default/files/2025-07/Report-on-India-Renewable-Electricity-Roadmap-2030.pdf)</sup><sup> • </sup><sup>[19](https://insaindia.res.in/pdf/Energy_Working_Draft.pdf)</sup>\n\n**Retirement versus construction.** The National Electricity Plan lists coal-based plants for likely retirement during 2022-23 to 2026-27 alongside under-construction thermal, hydro, nuclear, and pumped storage plants for benefits through 2032.<sup>[9](https://cea.nic.in/wp-content/uploads/irp/2023/05/NEP_2022_32_FINAL_GAZETTE-1.pdf)</sup> In practice the fleet is young: around 80% of existing coal capacity in India (and China) was less than 20 years old as of July 2025, and 28 GW of new coal capacity was under construction in India, against 227 GW in China.<sup>[14](https://www.renewable-ei.org/pdfdownload/activities/REI_ChinaIndia_2025_EN.pdf)</sup> Neither country has advanced coal power phase-out plans; India's COP26 framing is a \"phase down\" of coal, and the assessment cited above judges the 2070 net-zero commitment unachievable without significant coal reduction.<sup>[14](https://www.renewable-ei.org/pdfdownload/activities/REI_ChinaIndia_2025_EN.pdf)</sup><sup> • </sup><sup>[15](https://academic.oup.com/ooenergy/advance-article/doi/10.1093/ooenergy/oiag009/8691500)</sup> On generation share, the EIA reports coal at 71.3% of 2023 generation, while the Renewable Energy Institute reports 75% in 2024, up from 69% around 2010; the two figures reflect different years and accounting, and the trend direction differs between them.<sup>[3](https://www.eia.gov/international/content/analysis/countries_long/India/pdf/India.pdf)</sup><sup> • </sup><sup>[14](https://www.renewable-ei.org/pdfdownload/activities/REI_ChinaIndia_2025_EN.pdf)</sup>\n\n## Renewables, storage, and grid\n\nSolar and wind have driven the capacity shift, and distributed solar has become a policy instrument in its own right. FY 2025-26 saw the highest-ever distributed solar addition of 16.31 GW, including rooftop solar and KUSUM projects, about 36% of that year's total additions.<sup>[2](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2250039&lang=2&reg=3)</sup>\n\n**PM Surya Ghar.** The PM Surya Ghar: Muft Bijli Yojana, launched in February 2024 with a ₹750.2 billion (₹75,021 crore) outlay, is a demand-driven scheme open to all residential consumers with a grid-connected electricity connection from their [DISCOM](https://www.edgepedia.org/distribution-company-india); it targets 10 million (1 crore) rooftop solar households and 30 GW of rooftop solar by FY 2026-27.<sup>[13](https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2026/07/20260723515585394.pdf)</sup> A journal account describes the scheme's aim as 10 million rooftop installations by 2027 with capital subsidy up to 40%.<sup>[15](https://academic.oup.com/ooenergy/advance-article/doi/10.1093/ooenergy/oiag009/8691500)</sup> As of 31 December 2025, 5.562 million (55.62 lakh) applications had been submitted and 2.605 million (26.05 lakh) households had benefited, with ₹147.7 billion (₹14,771 crore) of central financial assistance disbursed; cumulative rooftop installations had benefited more than 4.2 million (42 lakh) households, with PM Surya Ghar at 3.43 million (34.3 lakh) including 2.27 million (22.7 lakh) in FY 2025-26.<sup>[13](https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2026/07/20260723515585394.pdf)</sup><sup> • </sup><sup>[2](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2250039&lang=2&reg=3)</sup> By end of FY25 the scheme had spent INR 78.18 billion (INR 7,818 crore; USD 924 million) and PM-KUSUM, which aims to solarise the farm sector and enhance water, energy, and income security for farmers, had spent INR 51.64 billion (INR 5,164 crore; USD 630 million); together they accounted for 49% of all renewable energy subsidies in FY25.<sup>[18](https://www.iisd.org/publications/digital-story/mapping-indias-energy-policy-2026)</sup><sup> • </sup><sup>[15](https://academic.oup.com/ooenergy/advance-article/doi/10.1093/ooenergy/oiag009/8691500)</sup> Both schemes shift policy from recurring subsidies toward one-time capital investment intended to lower future subsidy requirements.<sup>[18](https://www.iisd.org/publications/digital-story/mapping-indias-energy-policy-2026)</sup>\n\n**Storage and grid integration.** In February 2025 the CEA advised co-locating energy storage of at least 10% of installed solar capacity for a minimum of two hours, and viability gap funding schemes support batteries: 13.22 GWh with Rs 37.6 billion (Rs 3,760 crore) in September 2023, and 30 GWh with Rs 54 billion (Rs 5,400 crore) in June 2025.<sup>[7](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2293896&lang=2&reg=48)</sup> During FY2025-26, 2,668.54 MW / 7,785.6 MWh of battery storage was added.<sup>[7](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2293896&lang=2&reg=48)</sup> Grid integration difficulties for utility-scale renewables include intermittency, congestion leading to curtailment, lack of transmission capacity to evacuate power, and high landed costs.<sup>[15](https://academic.oup.com/ooenergy/advance-article/doi/10.1093/ooenergy/oiag009/8691500)</sup>\n\n**Pricing and cross-subsidy.** Tariffs are shaped by the National Tariff Policy, the Grid Code (with must-run status for renewables irrespective of merit order), cost-plus tariffs, and regulated rates of return for government generators and transmission utilities.<sup>[20](https://pmc.ncbi.nlm.nih.gov/articles/PMC7576317/)</sup> India's progressive tariff structure cross-subsidizes agricultural consumption by commercial and industrial consumers, which disincentivizes distribution utilities from facilitating rooftop and decentralized solar for fear of losing their most remunerative customers.<sup>[21](https://cprindia.org/wp-content/uploads/2023/07/1-s2.0-S221462962300244X-main.pdf)</sup>\n\n## Recent developments\n\nSeveral structural changes date from 2024-2026. The PM Surya Ghar scheme launched in February 2024.<sup>[13](https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2026/07/20260723515585394.pdf)</sup> India has put in place a domestic carbon market for trading carbon-denominated energy units under the carbon credit trading scheme.<sup>[12](https://beta.iopscience.iop.org/article/10.1088/1748-9326/ad7749)</sup> The 2025-26 Union Budget set a target of 100 GW nuclear capacity by 2047, and the SHANTI Act, 2025 completed the legislative process on 20 December 2025, opening India's nuclear sector to private companies in plant operations, power generation, equipment manufacturing, and [nuclear fuel fabrication](https://www.edgepedia.org/nuclear-fuel-fabrication); NEP 2026 encourages advanced nuclear technologies, modular and small reactors, and nuclear use by commercial and industrial consumers.<sup>[5](https://www.powermin.gov.in/static/uploads/2026/06/0593dd0f9b721abdb5227d7ddf5ca439.pdf)</sup><sup> • </sup><sup>[22](https://world-nuclear-news.org/articles/indian-government-releases-draft-energy-policy)</sup> The draft National Electricity Policy (2026) is only the second such policy since 2005 and marks a substantive shift in the philosophical underpinnings of the planning framework.<sup>[23](https://ember-energy.org/app/uploads/2026/02/Embers-response-to-Indias-draft-National-Electricity-Policy-2026.pdf)</sup>\n\n**Record additions and a discom milestone.** In 2025 total renewable capacity reached 258 GW, 50.2% of the 513.7 GW total, up over 23% from 209.4 GW in December 2024, with 48.6 GW added in the year.<sup>[13](https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2026/07/20260723515585394.pdf)</sup> During FY2025-26, 9,470 MW of fossil-fuel capacity and 55,225 MW of non-fossil capacity were added.<sup>[7](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2293896&lang=2&reg=48)</sup> Distribution utilities achieved an aggregate profit after tax of Rs 27.01 billion (Rs 2,701 crore) in FY25, the first since the Electricity Act 2003 came into force, with AT&C losses down from 21.91% in FY21 to 15.04% in FY25; rural supply availability rose from 12.5 hours in FY2015 to 22.6 hours in FY2025.<sup>[7](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2293896&lang=2&reg=48)</sup> The Revamped Distribution Sector Scheme, launched July 2021, has Rs 1.53 trillion (Rs 1.53 lakh crore) of loss-reduction works and Rs 1.31 trillion (Rs 1.31 lakh crore) of smart metering sanctioned, covering 203.3 million (20.33 crore) smart meters of which 72.4 million (7.24 crore) are installed.<sup>[7](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2293896&lang=2&reg=48)</sup>\n\n## How it compares with China and peers\n\nThe two Asian giants have moved in opposite directions on coal's generation share: from roughly 2010 to 2024 it fell from 77% to 58% in China but rose from 69% to 75% in [India](https://www.edgepedia.org/india).<sup>[14](https://www.renewable-ei.org/pdfdownload/activities/REI_ChinaIndia_2025_EN.pdf)</sup> China targets net zero by 2060 and India by 2070, and neither has advanced coal phase-out plans; the upcoming Indian emissions trading system does not cover the power sector.<sup>[14](https://www.renewable-ei.org/pdfdownload/activities/REI_ChinaIndia_2025_EN.pdf)</sup> Between 2010 and 2024, renewable electricity generation grew eight times faster than nuclear power in India, and India has no offshore wind capacity while China leads the world in cumulative installed offshore wind.<sup>[14](https://www.renewable-ei.org/pdfdownload/activities/REI_ChinaIndia_2025_EN.pdf)</sup> On cost, new solar PV and onshore wind are cheaper than new coal power in both countries, and often outcompete existing coal in generation cost, particularly in China.<sup>[14](https://www.renewable-ei.org/pdfdownload/activities/REI_ChinaIndia_2025_EN.pdf)</sup> India's demand trajectory also dwarfs most peers: NITI Aayog scenarios project total electricity consumption of 6,544 TWh by 2070 under current policy and 12,997 TWh under a net-zero scenario, against 1,541 TWh at the scenario base.<sup>[6](https://niti.gov.in/sites/default/files/2026-02/Scenarios-Towards-Viksit-Bharat-and-Net-Zero-Sectoral-Insights-Power.pdf)</sup>\n\n## Unresolved tensions\n\n**Discom finances.** Despite the FY25 profit milestone, the structural problems persist. In 2020-21 the all-India aggregate AT&C loss stood at 21%, around three times the world average, driven by high power purchase costs, non-cost-reflective tariffs, and billing and collection inefficiencies.<sup>[12](https://beta.iopscience.iop.org/article/10.1088/1748-9326/ad7749)</sup> In FY24, about 44% to 86% of total borrowings by discoms in eight states was for non-capital end-use, with interest expenses contributing 5% of annual expenses.<sup>[18](https://www.iisd.org/publications/digital-story/mapping-indias-energy-policy-2026)</sup> Scholarship describes the sector's political economy as locked into a low-level equilibrium of incomplete liberalization, widespread tariff subsidies, clientelism, and weak regulatory autonomy, with legacy problems of theft, high losses, and crippling debt.<sup>[21](https://cprindia.org/wp-content/uploads/2023/07/1-s2.0-S221462962300244X-main.pdf)</sup>\n\n**Coal dependence and transition risk.** Coal's dominance of primary energy and generation, the young fleet, and the employment concentration described above make rapid retirement costly, even though new renewables outcompete new coal on cost.<sup>[14](https://www.renewable-ei.org/pdfdownload/activities/REI_ChinaIndia_2025_EN.pdf)</sup><sup> • </sup><sup>[19](https://insaindia.res.in/pdf/Energy_Working_Draft.pdf)</sup> Peer-reviewed work finds energy-transition risks create uneven financial impacts across India's power sector, with dynamics distinct from developed-market perspectives because India is a rapidly growing developing economy.<sup>[24](https://www.nature.com/articles/s43247-026-03595-9)</sup> An econometric study of 1971-2024 data finds that higher domestic petrol prices, the coal tax, and the period after the [Paris Agreement](https://www.edgepedia.org/paris-agreement) contribute toward lower long-run fossil shares, but that fiscal and pricing policies have some, not very significant, effects on the long-run energy structure, implying stronger fiscal signals are needed.<sup>[25](https://link.springer.com/article/10.1007/s41775-026-00260-y)</sup>\n\n**Storage and grid.** The gap between 50% non-fossil capacity and roughly three-quarters fossil generation reflects the integration constraint: storage targets of about 47 GW of BESS by 2031-32 and 100 GW of pumped storage by 2035-36 are plans, not installed assets, and curtailment and transmission gaps persist.<sup>[7](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2293896&lang=2&reg=48)</sup><sup> • </sup><sup>[15](https://academic.oup.com/ooenergy/advance-article/doi/10.1093/ooenergy/oiag009/8691500)</sup> Policy mandates push in the same direction, with RE purchase obligations for DISCOMs, a 40% RE generation obligation for generation companies, and Energy Conservation Act amendments mandating minimum RE use in designated industries.<sup>[12](https://beta.iopscience.iop.org/article/10.1088/1748-9326/ad7749)</sup>\n\n## References\n\n1. [Power Sector at a Glance, July 2025, Ministry of Power](https://powermin.gov.in/sites/default/files/uploads/power_sector_at_glance_July_2025.pdf)\n2. [PIB press release on renewable capacity, 31 March 2026](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2250039&lang=2&reg=3)\n3. [Country Analysis Brief: India, U.S. Energy Information Administration](https://www.eia.gov/international/content/analysis/countries_long/India/pdf/India.pdf)\n4. [Energy Statistics India 2026, MoSPI](https://www.mospi.gov.in/uploads/publications_reports/publications_reports1776236408576_e41fac2e-cde2-4002-9055-aa42a4140c25_Energy_Statistics_India_2026_Final.pdf)\n5. [National Electricity Policy (2026 revision), Ministry of Power](https://www.powermin.gov.in/static/uploads/2026/06/0593dd0f9b721abdb5227d7ddf5ca439.pdf)\n6. [Scenarios Towards Viksit Bharat and Net Zero: Power, NITI Aayog](https://niti.gov.in/sites/default/files/2026-02/Scenarios-Towards-Viksit-Bharat-and-Net-Zero-Sectoral-Insights-Power.pdf)\n7. [PIB release on power sector reforms, storage and distribution](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2293896&lang=2&reg=48)\n8. [Report on India's Renewable Electricity Roadmap 2030, NITI Aayog](https://niti.gov.in/sites/default/files/2025-07/Report-on-India-Renewable-Electricity-Roadmap-2030.pdf)\n9. [National Electricity Plan (Volume I) Generation 2022-32, CEA Gazette](https://cea.nic.in/wp-content/uploads/irp/2023/05/NEP_2022_32_FINAL_GAZETTE-1.pdf)\n10. [National Electricity Policy in India (2026), IMPRI](https://www.impriindia.com/centres/center-for-environment-climate-change-and-sustainable-development/national-electricity-policy-in-india-2026/)\n11. [Is Electrification in India Fiscally Sustainable?, NCAER](https://ncaer.org/wp-content/uploads/2024/07/IPF2023-Paper-2.pdf)\n12. [India's pathway to net zero by 2070, Environmental Research Letters](https://beta.iopscience.iop.org/article/10.1088/1748-9326/ad7749)\n13. [MNRE Annual Report 2025-26 chapter](https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2026/07/20260723515585394.pdf)\n14. [Progress of China and India in Switching from Coal to Renewables, Renewable Energy Institute (2025)](https://www.renewable-ei.org/pdfdownload/activities/REI_ChinaIndia_2025_EN.pdf)\n15. [India's role in energy transition, Oxford Open Energy](https://academic.oup.com/ooenergy/advance-article/doi/10.1093/ooenergy/oiag009/8691500)\n16. [Cabinet approves India's NDC (2031-2035), PM India](https://pmindia.gov.in/en/news_updates/cabinet-approves-indias-nationally-determined-contribution-2031-2035-to-be-communicated-to-the-united-nations-framework-convention-on-climate-change/)\n17. [Energy Statistics 2025 Executive Summary, MoSPI](https://www.mospi.gov.in/sites/default/files/publication_reports/Energy_Statistics_2025/Executive%20Summary_27032025.pdf)\n18. [Mapping India's Energy Policy 2026, IISD](https://www.iisd.org/publications/digital-story/mapping-indias-energy-policy-2026)\n19. [A Unified National Energy Policy Framework for India, INSA working draft](https://insaindia.res.in/pdf/Energy_Working_Draft.pdf)\n20. [Viability of power distribution in India, PMC](https://pmc.ncbi.nlm.nih.gov/articles/PMC7576317/)\n21. [India's state-led electricity transition, Energy Research & Social Science (via CPR)](https://cprindia.org/wp-content/uploads/2023/07/1-s2.0-S221462962300244X-main.pdf)\n22. [Indian government releases draft energy policy, World Nuclear News](https://world-nuclear-news.org/articles/indian-government-releases-draft-energy-policy)\n23. [Ember response to India's draft National Electricity Policy 2026](https://ember-energy.org/app/uploads/2026/02/Embers-response-to-Indias-draft-National-Electricity-Policy-2026.pdf)\n24. [Energy-transition risks create uneven financial impacts across India's power sector, Communications Earth & Environment](https://www.nature.com/articles/s43247-026-03595-9)\n25. [Beyond the Paris agreement: How domestic fiscal policy is shaping India's energy mix, Indian Economic Review](https://link.springer.com/article/10.1007/s41775-026-00260-y)\n\n---\n*Topic: Encyclopedia › Technology and the built world › Energy technology › Energy policy and governance*\n\n*Initially written Sep 17, 2026 · Reviewed: Sep 30, 2026; Oct 15, 2026 · Edited: Sep 30, 2026; Oct 15, 2026 · Last review: Oct 15, 2026*\n\n*Copyright 2026 EdgeChat AI, a subsidiary of Biostate AI.*\n\nLicense: Edgepedia Community License 1.0, https://www.edgepedia.org/edgepedia/license\n",
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 "speakable": "India's energy policy governs how India's central and state governments manage energy production, pricing, and decarbonization, pursuing 500 GW of non-fossil capacity by 2030 and net zero by 2070."
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