By Aditi Gupta

Abstract:

India has set ambitious climate goals, committing to net-zero emissions by 2070 and achieving 50% cumulative non-fossil energy capacity by 2030, as outlined in its Nationally Determined Contributions under the UN Framework Convention on Climate Change. With a current non-fossil fuel energy capacity of 217.62 GW, India must approximately add 50 GW annually to meet the 500 GW target by 2030. Major corporations such as Reliance Industries and Adani Green Energy are driving renewable energy investments, while India’s solar energy sector has seen a 36.5% CAGR over the past 11 years. Green transport initiatives, such as electric vehicles (EVs) and hydrogen-powered heavy-duty trucks, are gaining momentum. Indian Railways is committed to net-zero emissions by 2030, while sustainable aviation fuel (SAF) production is advancing through collaborations between private companies and the government. Policies such as Make in India and tax incentives for hybrid vehicles further accelerate the transition. Despite these efforts, India still relies heavily on fossil fuels, necessitating a shift toward digitisation, decarbonisation and decentralisation of the energy sector. Achieving grid parity remains a key challenge, but India’s progress thus far underscores its commitment to a sustainable and green economy driven by renewable energy sources.

India’s Commitment to Net-Zero and Renewable Energy Goals

India has committed to achieving net-zero emissions by 2070. It aims to reach 50% cumulative non-fossil energy capacity by 2030, as outlined in its Nationally Determined Contributions (NDCs) under the United Nations Framework Convention on Climate Change. This ambitious target underscores India’s dedication to sustainability, clean energy and climate action.

Former Power and New & Renewable Energy Minister R.K. Singh stated in 2023 that India was already nine years ahead of schedule in reaching its previous target of 40% installed power capacity from non-fossil fuel sources. This progress positions India strongly to achieve its 50% non-fossil capacity goal by 2030. To meet the target of 500 GW of renewable energy capacity by 2030, India must add approximately 50 GW of capacity each year for the next six years, building upon its existing 217.62 GW of non-fossil fuel energy capacity.

The Driving Forces Behind India’s Energy Transition

The transition to renewable energy is driven primarily by the urgent need to decarbonise the economy and reduce dependence on fossil fuels. However, the transformation is multi-dimensional, encompassing environmental, social and economic considerations. Access to clean energy is crucial for improving public health, creating new employment opportunities and alleviating poverty. This shift is also vital for India’s energy security, as reducing reliance on imported fossil fuels can shield the country from volatile global energy markets.

A collaborative approach involving both the government and private sector is propelling this transformation forward. Major Indian corporations such as Reliance Industries, Adani Group, Mahindra & Mahindra and Tata have taken significant steps to accelerate the country’s renewable energy transition. Massive investments and strategic action plans for green energy development are already reshaping India’s renewable energy landscape.

Major Renewable Energy Initiatives by Indian Companies

Reliance Industries: The Dhirubhai Ambani Green Energy Giga Complex

Reliance Industries has set an ambitious target of installing 100 GW of renewable energy generation capacity at its Jamnagar facility by 2030. This initiative, known as the Dhirubhai Ambani Green Energy Giga Manufacturing Complex, aims to integrate solar, wind and green hydrogen production, reinforcing India’s leadership in clean energy development.

Adani Green Energy’s Expansion

Adani Green Energy, another key player, has announced plans to invest USD 3 billion at the Mundra seaport to expand its renewable energy infrastructure. The company aims to boost its current capacity from 4 GW to 10 GW by 2027, contributing significantly to India’s renewable energy goals.

The Rise of Electric Vehicles (EVs) in India

The green fuel revolution in India began with the introduction of Maruti Suzuki CNG models in 2010, followed by hybrid vehicles in 2015. Since then, electric vehicles (EVs) have gained momentum, driven by their cost-effectiveness, environmental benefits and increasing adoption rates.

India’s vision of becoming a developed nation by 2047 necessitates tackling climate risks and global temperature rises. As part of this mission, the government has actively promoted EVs and sustainable transport. However, achieving widespread EV adoption requires overcoming several challenges, including access to technology, infrastructure development and funding. Estimates suggest that India will need annual investments of USD 150-200 billion to support its transition to sustainable energy sectors.

So far, India has raised USD 550 million for EVs, USD 2 billion for solar rooftops and USD 9-10 billion annually for battery energy storage systems (BESS), demonstrating its commitment to green technologies.

Heavy-Duty Trucks and Sustainable Transport

In a significant development for sustainable transport, Tata Motors launched India’s first hydrogen-powered heavy-duty trucks in collaboration with the Ministry of Road Transport and Highways and the Ministry of New and Renewable Energy. The initiative is part of the National Green Hydrogen Mission, aimed at developing sustainable long-haul transportation solutions.

Indian Railways is also contributing to the green transition by rapidly electrifying its network and phasing out diesel locomotives. The national carrier has committed to achieving net-zero emissions by 2030, a crucial step in decarbonising the transport sector. 

Sustainable Aviation Fuel (SAF) Initiatives

India recently launched a sustainable aviation fuel (SAF) production initiative during India Energy Week 2025. Honeywell and AM Green Ammonia signed a memorandum of understanding (MoU) to explore ethanol, green methanol and green hydrogen as alternatives to traditional aviation fuels. These efforts align with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and aim to reduce the aviation industry’s dependence on crude oil imports.

The President of Honeywell India emphasised that their collaboration with AM Green would combine advanced carbon capture technologies and ethanol-to-jet solutions to drive sustainability in aviation. This initiative cements India’s position as a global leader in alternative fuel innovation and clean energy adoption.

Government Policies and Regulatory Support

India’s renewable energy push is supported by policies such as Make in India, Assemble in India and Skill India, which have facilitated large-scale employment generation, particularly benefiting marginalised populations.

Union Minister Nitin Gadkari has advocated for the complete elimination of petrol and diesel vehicles, which currently number over 360 million in India. Measures include reducing taxes on hybrid vehicles to 5% and flex-fuel engines to 12%, alongside promoting biofuels.

The International Council on Clean Transportation (ICCT) found that 22 Indian states and union territories have implemented non-fiscal incentives for EV adoption. These include the development of green zones, reserved parking spaces with integrated charging stations and infrastructure expansion for electric mobility. States such as Andhra Pradesh, Haryana, Kerala, Ladakh, Maharashtra, Madhya Pradesh, Meghalaya, Odisha, Punjab, Telangana and West Bengal have taken notable steps in this regard. Additionally, the Delhi government has mandated that commercial establishments allocate dedicated EV charging infrastructure in their parking spaces.

Challenges and the Road Ahead

Despite substantial progress, India remains heavily dependent on fossil fuels, including coal, oil and gas, which constitute more than half of its energy mix. Achieving 500 GW of installed renewable energy capacity by 2030 requires continued efforts to overcome key challenges such as:

• Grid Parity: Achieving cost-competitiveness of renewable electricity with traditional energy sources. 
• Energy Storage: Developing large-scale battery solutions to address the intermittency of renewables.
• Infrastructure Development: Expanding transmission networks to accommodate growing renewable energy capacity.
• Decentralisation & Digitisation: Integrating smart grid solutions and localised energy production to improve energy security.

Conclusion: India’s Path to a Green Economy

India’s progress in renewable energy is a testament to its commitment to a sustainable energy future. With a diverse mix of solar, wind, hydro and bioenergy sources, the country is making significant strides toward decarbonisation. While challenges remain, sustained investments, policy support and innovation in green technologies will be crucial in ensuring a smooth and successful energy transition.

By sustaining this momentum, India is well-positioned to lead the global clean energy revolution,  creating a greener and more resilient economy for future generations.

Author’s bio: Aditi Gupta is a graduate of B.A. (Hons.) Liberal Arts and Humanities with a major in Political Science and International Relations. She is interested in pursuing further studies in international relations, environmental studies and economics. 

Image Source: Why Europe’s ‘climate moon-shot’ needs the private sector as co-pilot – Business & Industry