By Team N
- ₹8,146 Crore Hydro Project in Arunachal to Power Clean Energy Push
The Union Cabinet has approved a ₹8,146.21 crore investment for the 700 MW Tato-II hydroelectric project in Arunachal Pradesh’s Shi-Yomi district, a move set to strengthen India’s clean-energy ambitions and regional infrastructure. Comprising four 175 MW units, the project will generate roughly 2,738 million units annually and is expected to be commissioned within 72 months.
The Centre will contribute ₹458.79 crore for roads, bridges and transmission lines, and ₹436.13 crore towards the state’s equity share. The venture, led by NEEPCO in partnership with the Arunachal Pradesh government, will supply 12% of its output free to the state and channel further royalties into local development.
Officials view the project as both an energy and geopolitical asset, deepening economic integration in a strategically sensitive border state. Hydropower is expected to play a critical role in meeting India’s target of 500 GW non-fossil fuel capacity by 2030, providing a stable baseload to complement solar and wind.
Challenges remain, from the logistical complexities of Himalayan construction to environmental clearances and potential hydrological volatility from climate change. Even so, Tato-II is a flagship in New Delhi’s “Northeast as Growth Engine” policy, signalling a firm commitment to sustainable generation and regional upliftment.
- India Targets 500 GW Non-Fossil Fuel Capacity by 2030
India is advancing rapidly towards its Paris Agreement goal of 500 GW non-fossil fuel capacity by 2030. As of November 2024, installed non-fossil capacity exceeded 205 GW—42% of total generation capacity—and by June 2025 had risen to 235.7 GW, nearly half the total.
This growth is being driven by solar dominance, rising wind installations, and steady nuclear capacity, underpinned by production-linked incentives, competitive bidding, and concessional finance. To meet the 2030 goal, India will need to add 40-50 GW annually, far above the historical rate.
Bottlenecks persist, including slow transmission expansion, land acquisition disputes, and a lack of large-scale storage. Analysts warn that execution speed, policy stability, and discom reforms will determine whether the target remains viable.
Global investors remain bullish, with billions flowing from domestic giants like Adani Green and ReNew to international developers. The milestone now looks within reach, provided implementation matches ambition.
- E20 Ethanol Rollout Gains Momentum Amid Consumer Concerns
India’s rollout of 20% ethanol-blended petrol (E20) has lifted blending levels from 12% in FY23 to nearly 20% in early 2025, ahead of schedule. Government studies show ethanol from sugarcane cuts greenhouse-gas emissions by up to two-thirds compared with petrol, boosting the case for mass adoption.
However, motorists—especially with older vehicles—have reported reduced mileage and engine issues, prompting calls for clearer labelling and compatibility standards. The Oil Ministry has dismissed fears as unfounded, while industry bodies argue the benefits to farmers, emissions, and fuel imports outweigh teething problems.
As part of a broader energy-transition strategy, E20 is positioned as a bridge fuel, supporting both environmental targets and rural incomes. The challenge will be balancing public trust with rapid scale-up.
- Rooftop Solar Installs Accelerate in Cities and Smart Projects
Rooftop solar capacity is growing at unprecedented speed, with schemes like the PM Surya Ghar Muft Bijli Yojana targeting 10 million homes by 2027. The pace has quickened to 100,000 new installations every 45 days, compared with five years for the first 100,000 systems in 2019.
States such as Haryana and Chandigarh are setting benchmarks with mass adoption across public buildings and residential areas, aided by subsidies and streamlined approvals. Chandigarh has achieved near-universal rooftop coverage, saving ₹60 crore annually and cutting 80,000 tonnes of CO₂ emissions.
Barriers remain in financing, discom engagement, and regulatory clarity. Yet distributed solar is becoming central to India’s urban energy mix, reducing grid pressure and enhancing energy resilience.
- Coal Washeries and Block Auctions Boost Coking Coal Supply
India is intensifying reforms in the coal sector, particularly in coking coal—critical for steelmaking. Plans aim to raise domestic production from 60.4 million tonnes in FY24 to 105 million tonnes by FY30.
Fourteen new coking coal blocks have been auctioned to private developers, with output targeted by FY29. At the same time, washeries are being built and modernised to improve coal quality, with three new units adding 11.6 MT/year capacity and more in the pipeline.
The strategy seeks to cut dependence on imports, strengthen industrial supply chains, and align with energy-security objectives, even as renewables gain share in electricity generation.
- Rare Diesel Shipment to China Highlights Trade Flexibility
India has sent a rare diesel shipment to China—the first since 2021—as global sanctions reshape energy trade flows. A 496,000-barrel cargo from Nayara Energy’s Vadinar refinery, initially bound for Malaysia, was diverted to Zhoushan, China, after EU sanctions complicated transactions.
The move reflects the agility of Indian refiners to capture margins in volatile markets while diversifying buyers. For China, it adds to a broader strategy of securing fuel supplies amid geopolitical uncertainty.
Such opportunistic trades are expected to grow as traditional supply routes fragment, sanctions regimes tighten, and Asia’s energy interdependence deepens.
- Oriana Power secures SECI green ammonia contract at competitive rate
Oriana Power has emerged as a notable player in India’s clean-energy-to-industry transition, winning Solar Energy Corporation of India’s (SECI) latest green ammonia auction. The company will supply 60,000 tonnes per annum (TPA) of green ammonia to Madhya Bharat Agro Products in Sagar, Madhya Pradesh, for a period of 10 years at ₹52.25/kg (~$0.59). This price point underlines the accelerating cost competitiveness of renewable-derived industrial feedstocks.
The deal reflects a maturing market in which renewable developers are increasingly targeting downstream industrial applications rather than solely grid power sales. Green ammonia—produced using renewable electricity to split water into hydrogen and nitrogen—is a critical feedstock for fertilisers and a potential zero-carbon maritime fuel.
Oriana’s contract sits within India’s wider strategy to embed renewables into industrial value chains, reducing import dependence and emissions from hard-to-abate sectors. The steady price commitment over a decade also suggests growing confidence in India’s renewable supply stability and cost curves.
- SECI issues 600 MW/1,200 MWh battery energy storage tender
The Solar Energy Corporation of India has floated a 600 MW/1,200 MWh battery energy storage system (DC package) tender as of August 2025, signalling the government’s intent to accelerate storage deployment alongside renewable expansion. With solar and wind penetration rising, India’s grid increasingly needs flexible, dispatchable capacity to smooth volatility and ensure reliability.
The move aligns with the National Electricity Plan’s emphasis on storage as a non-negotiable element of a 500 GW non-fossil fuel system by 2030. Global battery prices have been trending downward, though India’s storage market still faces supply chain dependencies and limited domestic manufacturing capacity.
The tender will likely attract bids from both domestic and international developers, with tariffs expected to set a new benchmark for long-duration storage costs in India.
- Tata Power champions solar adoption among businesses
Tata Power has intensified its outreach to corporate and SME clients, pitching solar as a hedge against volatile grid tariffs and a means to meet ESG commitments. The company has been showcasing case studies where on-site and open-access solar installations have delivered double-digit percentage savings on power costs.
This approach taps into a growing corporate appetite for direct renewable procurement—driven by cost, brand positioning, and pressure from global supply chain partners. Tata Power’s commercial solar push is part of a broader trend in which developers are diversifying from utility-scale tenders into the C&I segment, where margins are higher and customer relationships more strategic.
- India adds 7.8 GW of solar in Q1 2025, cumulative capacity nears 90 GW
India’s solar market posted one of its strongest quarters on record, installing 7.8 GW in Q1 2025 to reach 89.7 GW cumulative capacity. Utility-scale projects dominate with 70.3 GW, while rooftop solar climbed to 19.4 GW, signalling steady growth in the distributed segment.
Gujarat led with 1.6 GW of new capacity, leveraging streamlined land acquisition and strong DISCOM payment discipline. Rajasthan followed with 1.3 GW, while Maharashtra added 1 GW, aided by industrial off-take demand. Analysts say India’s 2025 pipeline is robust, though land and transmission constraints remain persistent risks.
- Solar generation rises 19.2% YoY in Q2 2025
India generated 43 billion units (BU) of solar power in Q2 2025, a 19.2% increase year-on-year. Rajasthan retained its top-producing position with 15.9 BU, driven by mega-park output and high solar irradiation. The data confirms solar’s rising contribution to the national grid, especially during daylight peak demand.
Grid operators continue to flag curtailment risks in states with high renewable penetration, reinforcing the need for storage build-out and interstate transmission upgrades.
- MNRE revises ALMM to boost quality and domestic supply
The Ministry of New and Renewable Energy updated its Approved List of Models and Manufacturers (ALMM) for solar PV modules effective 30 June 2025. The move is aimed at tightening quality standards while nudging developers toward domestic suppliers in line with the government’s Make in India push.
Industry players see the revision as a way to counter substandard imports and strengthen India’s manufacturing base, but warn that capacity ramp-up must match project timelines to avoid cost escalation.
- Leading wind firm posts 62% EBITDA jump despite weak share price
A top Indian wind developer reported a 62% year-on-year rise in EBITDA to ₹599 crore, supported by a 5,700 MW order book. However, shares remain below ₹70, reflecting investor caution over margin sustainability and sector-specific risks such as tariff caps and payment delays from state utilities.
The disconnect between operational growth and market valuation underscores broader equity market scepticism toward pure-play renewable developers without diversified generation portfolios.
- JIRE enters wind sector in strategic diversification
Jindal India Renewable Energy Limited (JIRE) has moved into wind power development, diversifying from its solar portfolio. The entry adds to the list of conglomerates expanding across multiple renewable verticals to hedge technology risk and capture cross-sector synergies in project execution and O&M.
Analysts say JIRE’s move could help accelerate hybrid project growth, especially in states with high wind-solar complementarity.
- India adds 1.8 GW wind in Q1 2025, up 63% YoY
India installed 1.8 GW of wind capacity in Q1 2025 versus 1.15 GW in the same period last year. Karnataka led with 620 MW, followed by Madhya Pradesh with 351 MW. The performance brings cumulative wind capacity close to 50 GW, maintaining India’s position as the world’s fourth-largest market.
While the pace is encouraging, sector executives point to integration issues, grid congestion, and delays in hybrid policy frameworks as growth constraints.
- Minister flags tariff, integration, and manufacturing challenges
At the Global Wind Day 2025 Conference in Bengaluru, Union Minister Pralhad Joshi reiterated wind’s central role in India’s energy transition but flagged three challenges: integrating wind with solar and battery storage; cutting tariffs from ₹3.90/unit to enhance competitiveness; and boosting domestic turbine manufacturing efficiency.
India currently manufactures 33 wind turbine models from 14 companies, covering capacities from 225 kW to 5.2 MW. A 53% increase in the renewable energy budget to ₹26,549 crore in FY26 signals policy support for scaling both manufacturing and deployment.
- India commissions 1,650 MW of large hydro in Q1 FY26
India added 1,650 MW of large hydropower capacity by June 2025, signalling a revival in the sector’s build-out. Key projects include NHPC’s Parbati-II Unit 4 (200 MW), THDC’s Tehri Pumped Storage Plant Unit 1 (250 MW), and Greenko’s Pinnapuram Hybrid Pumped Storage Project (5×240 MW), which integrates renewable generation with storage.
The Pinnapuram facility, in particular, represents a next-generation model, coupling large-scale renewables with long-duration storage to provide round-the-clock power supply — a template for other states targeting 24×7 renewable power.
- Hydro generation rises 13.41% YoY in April–June 2025
India’s large hydro plants generated 39,658.25 million units in April–June 2025, up 13.41% from the same period last year, supported by favourable hydrology and better reservoir management. The rise comes as pumped storage gains traction in India’s renewable integration plans, helping smooth seasonal and daily fluctuations in power generation.
- NPCIL invites private firms to build Bharat Small Reactors
The Nuclear Power Corporation of India Ltd (NPCIL) has issued Requests for Proposals (RFPs) to private firms to finance and construct Bharat Small Reactors (BSRs) — 220 MW Pressurised Heavy Water Reactors designed for deployment near energy-intensive industries such as steel, aluminium, and metals.
This marks a significant shift toward private-sector participation in India’s nuclear programme, traditionally dominated by state-owned operators. The move is aimed at accelerating capacity additions while reducing dependence on long-gestation large reactor projects.
- Budget outlines 100 GW nuclear target by 2047, interim 22,480 MW by 2032
The Union Budget 2025–26 unveiled a Nuclear Energy Mission for Viksit Bharat, amending the Atomic Energy Act and Civil Liability for Nuclear Damage Act to encourage private investment. The plan targets nuclear capacity expansion from 8,180 MW today to 22,480 MW by 2031–32, with a long-term goal of 100 GW by 2047.
BSRs will be deployed close to industrial users, offering baseload power with reduced land requirements and potentially shorter construction timelines.
- ACME Group wins 75,000 TPA green ammonia supply contract under SIGHT
ACME Group has secured a contract to supply 75,000 tonnes per annum of green ammonia under India’s SIGHT scheme. This adds to the growing list of commercial-scale agreements linking India’s renewable capacity to global industrial decarbonisation efforts.
- SECI awards green hydrogen and electrolyser capacity under SIGHT
SECI has awarded contracts for 8.58 lakh MTPA of green hydrogen production and 2.3 GW of electrolyser manufacturing capacity under the SIGHT Programme. The awards span 19 companies for hydrogen production and 15 for electrolyser manufacturing, positioning India to scale domestic supply and export capacity.
- India’s green hydrogen economy eyes ₹10 lakh crore investment by 2030
India is targeting 5 MTPA of green hydrogen production and 20 GW of electrolyser manufacturing capacity by 2030, with investments estimated at ₹10 lakh crore. Ports at Kandla, Paradip, and Tuticorin have been designated as hydrogen hubs to facilitate export-oriented projects.
- India launches Green Hydrogen Certification Scheme and expands mission footprint
India’s Green Hydrogen Certification Scheme has been launched to standardise and verify green hydrogen production. The National Green Hydrogen Mission, launched in 2023 with ₹19,744 crore funding, remains the flagship policy framework, integrating the SIGHT Programme’s ₹17,000 crore budget through FY2030.
Secretary MNRE Santosh Kumar Sarangi told the World Hydrogen Summit 2025 in Rotterdam that India’s strategy combines domestic decarbonisation with export competitiveness, aiming to position the country among the world’s leading low-cost producers.