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Green Energy in India: How the Energy Transition Is Reshaping the Power Sector

India’s energy story is changing – and fast. What used to be a power sector run mostly on coal is now shifting gears. The move to clean power, or what’s now called the energy transition, isn’t just a theory anymore. It’s real, it’s happening on the ground, and it’s turning into one of the biggest economic shifts the country’s seen in decades.

And right at the heart of it? Green energy in India. With massive solar parks, huge wind projects, and a rising number of green energy companies pushing the change, India’s energy future looks a whole lot cleaner.

Let’s dive into how the energy transition is reshaping things, who’s leading it, and why it’s something every business, policymaker, and citizen should be paying attention to.

India’s Power Sector: The Need for a Shift

For years, India’s power needs were met mostly by coal. Cheap, accessible, and reliable – coal helped fuel economic growth and keep the lights on across cities and villages. But it came with a cost. Air pollution, rising carbon emissions, and growing international pressure made it clear – something had to give.

So now, India’s doing what a lot of countries are trying to do – switching to cleaner energy sources. The energy transition is no longer a nice-to-have – it’s a must. And with India targeting net-zero emissions by 2070 and aiming to hit 500 GW of non-fossil fuel capacity by 2030, things are moving fast.

What’s Actually Driving This Energy Transition?

Plenty of things, really. But here are a few of the big ones:

1. Climate Goals

India’s climate promises under the Paris Agreement mean serious action is needed. Moving away from coal and switching to renewables like solar and wind is key to hitting those goals.

2. Costs Are Falling

Renewable energy, especially solar, has become cheaper than coal in many cases. So naturally, everyone from the government to private players is taking it more seriously.

3. Tech Is Getting Better

We’ve got smarter grids, better battery storage, AI for demand prediction – all of its making clean power more efficient, round-the-clock and reliable.

4. Private Sector Is All In

A wave of green energy companies is stepping up, investing big money into solar parks, wind farms, green hydrogen and more. It’s no longer just a government-driven push – business is leading too.

Green Energy in India: Current Status and Growth

To put it simply – way ahead of where most people thought it would be five years ago.

India has already crossed 180 GW of installed renewable energy capacity, making it the fourth-largest in the world. That includes solar, wind, small hydro, and bio-power. And that number’s only going to go up.

Here’s a quick look:

Energy TypeInstalled CapacityShare in RE
Solar75+ GW42%
Wind45+ GW25%
Hydropower50+ GW28%
Biomass & Others10+ GW5%


The share of green energy in India is rising every year – and with the kind of investments coming in, we might hit those 2030 goals ahead of time.

Key Green Energy Companies Leading the Shift

There’s no shortage of green energy companies in India right now, but a few are really setting the pace:

Adani Green Energy

They’ve already got 9 GW up and running, and they’re aiming for a whopping 45 GW by 2030. Massive solar projects, wind farms, even hybrid parks – they’re doing it all.

Tata Power Renewable

Tata’s going full steam ahead on solar and wind. They’ve got one of the largest solar rooftop portfolios in the country and are pushing for 100% clean energy by 2040.

Renew Power

This one’s interesting – they’re big into wind and solar, but also leading the charge on battery storage. And they’ve got global backers, which helps with funding and tech.

JSW Energy

JSW is slowly moving away from coal and putting money into solar and wind projects. It’s a transition for them – but they’re doing it the right way.

Essar

And then there’s Essar, which is turning heads with its low-carbon focus. They’ve set up the Essar Energy Transition (EET) platform and are investing in green & low-carbon hydrogen, clean fuels, renewables and even green mobility through LNG & EV trucks. It’s all part of their strategy to shift from fossil-heavy operations to cleaner energy sources.

Also Read: LNG trucks in India leads the way in Eco-friendly transport solutions

Government Policies Supporting Green Energy in India

Quite a bit, actually. This energy transition isn’t just happening on its own – government policy is a big part of the push. Some of the key moves include:

  • PLI Scheme for domestic solar panel manufacturing
  • Green Energy Corridors to upgrade the grid for renewable supply
  • National Green Hydrogen Mission to make India a global green hydrogen hub
  • Renewable Purchase Obligations (RPOs) that force discoms and big businesses to buy green power

All of this sends a clear message – clean energy isn’t optional anymore. It’s the future.

The Role of Green Hydrogen

If solar and wind are the backbone of green energy in India, then green hydrogen is the shiny new opportunity everyone’s watching.

Made by using renewable electricity to split water, green hydrogen has huge potential in sectors like steel, shipping and heavy industry – areas where regular electricity won’t cut it.

Reliance, Adani, NTPC, and yes, even Essar – they’re all setting up green hydrogen projects. The government wants India to be a global hub, and if things go well, we might even be exporting it in the next few years. In fact, Essar comes with global experience, working closely with the UK Government to develop a key low-carbon hydrogen hub at Essar’s Stanlow facility.

Challenges on the Road Ahead

Let’s be honest – the energy transition comes with its fair share of problems:

  • Grid Integration: Renewables are great, but they’re variable. Managing power when there’s no sun or wind is tricky.
  • Land Issues: Big solar or wind farms need a lot of land, and acquiring it isn’t always easy or fair.
  • Financing: While money is coming in, big projects need billions. Smaller developers often struggle to get funding.
  • Storage: Until battery tech gets cheaper and better, balancing supply and demand will be a challenge.

These aren’t deal-breakers – but they’re definitely things India will need to sort out if it wants a truly smooth energy shift.

So, What’s Next?

The next decade is going to be huge for green energy in India. Here’s what we’ll likely see:

  • More rooftop solar in homes and businesses
  • EVs powered by clean electricity and event LNG trucks in India
  • Big focus on energy storage – batteries, pumped hydro, even low-carbon/green hydrogen
  • Growth in decentralised energy (think micro grids for villages)
  • Green hydrogen becoming a major export product

India’s energy story is being rewritten, and clean power is the headline.

Final Thoughts

The energy transition in India isn’t just about switching fuels – it’s about reimagining the entire power system. From how we generate electricity to how we store and use it, the shift is happening at every level.

And it’s not being driven just by policy. It’s being powered by people – entrepreneurs, engineers, start-ups, and some of the biggest green energy companies around. It’s being backed by investment, innovation, and a growing awareness that climate change can’t be ignored anymore.

Green energy in India is no longer an add-on – it’s central to the country’s growth story. And if this momentum keeps up, India could very well lead the way in the global clean energy race.