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Why clean energy capacity isn’t matching India’s real power output India’s clean energy rise hides a power generation gap
Tuesday, 22 Jul 2025 00:00 am
News Headlines, English News, Today Headlines, Top Stories | Arth Parkash

News Headlines, English News, Today Headlines, Top Stories | Arth Parkash

India is proudly moving towards a clean energy future, with renewable, hydro, and nuclear energy now making up 50% of the country’s total installed power capacity. This is a significant improvement compared to 2020, when thermal power plants dominated with 63% of the capacity. However, the real challenge lies in the electricity generation figures, which tell a different story.

Despite the sharp rise in renewable capacity, thermal power continues to generate 85% of the electricity produced in India. Renewables, which now hold 38% of the installed capacity, contributed barely 1% of actual power generation between April 1 and July 14 this year. Nuclear energy, despite forming just 2% of total capacity, supplied 4% of the electricity — proving to be far more reliable than renewables at this stage.

This discrepancy between capacity and actual generation raises serious questions about the efficiency, storage, and dependability of clean energy in India’s power grid.

Clean energy is rising, but thermal dominates power generation

Over the past five years, India’s renewable capacity has grown by 111%, jumping from 87.7 GW in July 2020 to 184.6 GW in July 2025, according to the Central Electricity Authority. Nuclear power capacity also saw impressive growth of 30%, increasing from 6.8 GW to 8.8 GW in the same period. Hydro power capacity rose slightly by 8.1%, while thermal power, once the mainstay, expanded by just 5%.

Yet, thermal power remains the backbone of electricity supply. Why? The answer lies in the intermittent nature of renewable sources like solar and wind, which are heavily dependent on weather and time of day. Without a robust energy storage system, the full potential of renewables remains untapped.

Hydro power has largely maintained its share over the years, but it too faces challenges due to fluctuating rainfall patterns and environmental concerns over large dams. Meanwhile, nuclear energy — though smaller in scale — has proven its ability to deliver steady power and is now emerging as a crucial part of India’s energy mix.

Nuclear power is India’s next big focus

Recognizing the limitations of renewables, the Indian government is betting big on nuclear energy. The recently announced Nuclear Energy Mission, supported by the Union Budget 2025-26, has earmarked ₹20,000 crore for research and development of small modular reactors (SMRs). The plan is to develop at least five indigenous SMRs by 2033, paving the way for a cleaner and more stable energy supply.

India’s nuclear capacity is currently around 8.2 GW but is set to grow rapidly. By 2032, the government aims to reach 22.48 GW, and by 2047, the target is an ambitious 100 GW. This would make nuclear energy one of the major pillars of India’s power generation system.

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New nuclear projects are being planned across the country. The Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP) is one such project that has seen recent review and progress. States like Bihar, which currently lack nuclear facilities, are likely to be part of this expansion in the coming years.

Union Minister Jitendra Singh has called this shift “transformative,” stating that nuclear power will bridge the gap between India’s growing energy needs and the limitations of renewables.

The road ahead

While India’s clean energy numbers look impressive on paper, the reality of electricity generation paints a different picture. Solar and wind plants require advancements in battery storage and grid management to deliver consistent power. Without this, thermal plants will continue to shoulder the bulk of energy generation, defeating the purpose of building a large clean energy capacity.

Experts argue that India needs to focus equally on technology upgrades and energy storage solutions if it wants to truly reduce its dependence on coal. Nuclear energy, with its steady output and relatively low carbon footprint, appears to be the most reliable clean energy source for the foreseeable future.

India’s energy future depends not just on installing clean energy capacity but on ensuring that the power generated meets the country’s growing demand in a sustainable and reliable way. The government’s nuclear push, combined with efforts to improve renewable energy storage, could help achieve this balance.