Why in the News?

Recently, India has achieved 50% of its installed power capacity from non-fossil sources, five years ahead of its Paris Agreement target. However, clean energy contributes under 30% of actual electricity supply due to low capacity utilisation rates.

Why is clean energy generation lower than installed capacity?

• Low Capacity Utilisation Factor (CUF): Clean energy sources operate at lower efficiency. For example, solar power has a CUF of ~20% and wind ~25–30%, while coal operates at ~60% CUF and nuclear at ~80%. Eg: As of June 2025, India’s installed non-fossil fuel capacity was 50% of 484 GW, but the actual electricity supplied from clean sources was only 28% of the total.
• Intermittent Generation and Time Dependence: Renewable energy depends on natural conditions — solar is only available during daylight hours, and wind is seasonal. Eg: In 2014-15, clean energy contributed 17% to total generation; despite reaching 50% installed capacity by 2025, generation rose only to 28%, reflecting the limitations of time-bound output.
• Lack of Energy Storage and Grid Flexibility: India lacks sufficient battery storage and smart grid infrastructure to store and distribute excess renewable energy. Eg: During daytime in summer, solar plants reduce coal dependence, but in the evening, coal still supplies 75% of the energy mix, due to the absence of stored solar power.

How does coal still dominate India’s energy mix?

• High Reliability and Base Load Supply: Coal provides consistent, round-the-clock electricity, making it ideal for base load demand that must be met continuously. Eg: Thermal power plants in Chhattisgarh and Jharkhand run 24/7 to supply power to industrial zones in eastern India.
• Established Infrastructure: India has a vast network of coal-based plants, railways for coal transport, and supply chains, making coal a readily usable resource. Eg: The Singrauli region in Madhya Pradesh has integrated coal mines and thermal plants that supply electricity to multiple states.
• Lower Initial Costs for Generation: Coal-based plants are already built and operational, allowing them to generate electricity at a lower short-term marginal cost than new renewable setups. Eg: NTPC’s older thermal plants continue operating profitably with sunk capital costs.
• Policy and Economic Dependence: Coal is a major contributor to government revenue and employment, especially in coal-rich states like Odisha and Jharkhand. Eg: The Mahanadi Coalfields Limited (MCL) contributes significantly to Odisha’s economy and supports thousands of livelihoods.

What can improve renewable energy reliability?

• Expansion of Renewable Energy Targets: India set a target of achieving 500 GW of non-fossil fuel capacity by 2030, in line with its Nationally Determined Contributions (NDCs) under the Paris Agreement.
• Promotion of Solar Energy (PM-KUSUM & Rooftop Solar): Schemes like PM-KUSUM promote solar pumps for agriculture, while the Rooftop Solar Programme aims to increase solar adoption in residential and commercial sectors.
• Green Energy Corridor Development: The government is investing in Green Energy Corridors to enable the smooth transmission of renewable power from generation points to demand centres. Eg Under Green Energy Corridor Phase-I, over 9700 circuit km of transmission lines and 220 substations were planned.
• Production-Linked Incentive (PLI) Scheme for Solar Manufacturing: Under the PLI scheme, the government provides financial incentives to boost domestic manufacturing of solar PV modules, reducing import dependence.
• Push for Energy Storage and Hybrid Projects: Promotion of battery storage, pumped hydro projects, and hybrid renewable energy parks (solar + wind + storage) to ensure round-the-clock clean energy supply.

What can improve renewable energy reliability?

• Energy Storage Systems: Deploying large-scale battery storage and pumped hydro storage can store surplus energy from solar and wind sources and release it during periods of high demand or low generation.
• Smart Grid Infrastructure: Implementing smart grids enables real-time demand-supply balancing, better integration of variable renewables, and supports differential pricing to shift demand to renewable-rich hours.
• Hybrid Renewable Projects: Promoting hybrid systems that combine solar, wind, and storage ensures more consistent power output by compensating for the variability of individual sources.

Mains PYQ:

[UPSC 2022] How much of India’s energy requirements are met by renewable energy by 2030 ? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain.

Linkage: The article talks about the India has achieved a significant milestone with 50% of its total electric power capacity sourced from non-fossil fuels (solar, wind, biomass, hydro, and nuclear power), the actual share of clean energy in the electricity supplied is below 30%. This question directly related to the India’s energy requirements are met by renewable energy.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now