By Team Newscript
August 12, 2025
- India hits 50% non-fossil capacity five years early
NEW DELHI, Aug 12 — India’s installed electricity generation capacity from non-fossil fuel sources has reached 50 per cent — five years ahead of its 2030 Paris Agreement commitment. The portfolio includes 234GW from clean energy (solar, wind, large hydro), 8.7GW nuclear, and 242GW thermal. This milestone reflects strong policy measures such as the Production-Linked Incentive scheme, accelerated auctions, and substantial private investment from players like Adani Green Energy. Analysts note the symbolism: coal remains dominant in absolute terms, but clean capacity is expanding at unprecedented speed. With demand forecast to grow over 6 per cent annually through 2030, peak load management will require grid modernisation and energy storage. The early achievement strengthens India’s negotiating leverage ahead of COP30 in Brazil.
- Solar capacity climbs to 119GW in record expansion
NEW DELHI, Aug 12 — India’s solar power capacity has surged to 119GW as of July 2025, after adding 3.3GW in FY25 alone. Government-backed schemes, competitive auctions, and falling module costs have accelerated deployment, with Rajasthan, Gujarat, and Karnataka hosting large-scale parks. Rooftop and distributed solar are also gaining traction in urban and industrial areas. Developers such as Adani, Tata Power Solar, and ACME Solar are scaling aggressively. The government’s 500GW non-fossil target by 2030 positions solar as the largest contributor. Export markets have tightened following US tariffs on Indian solar modules, redirecting output to domestic projects. Transmission and storage bottlenecks remain the key constraints to sustained growth.
- Wind power steady at 51.6GW amid grid challenges
NEW DELHI, Aug 12 — India’s wind capacity has reached 51.6GW, with modest growth compared to solar due to grid integration constraints and slower project approvals. Tamil Nadu, Gujarat, and Maharashtra remain the top producers. Hybrid wind-solar projects and offshore wind initiatives are being prioritised to improve output consistency. The government is pushing for repowering older, less efficient turbines and offering viability gap funding for offshore installations. Analysts see scope for accelerated growth if grid infrastructure improves, especially with rising evening peak demand that wind can help meet.
- Hydro and nuclear provide backbone for clean energy mix
NEW DELHI, Aug 12 — Large hydro and nuclear power together contribute over 60GW to India’s clean energy capacity, providing critical baseload and balancing support. Hydro output, concentrated in Himachal Pradesh, Uttarakhand, and the northeast, is benefitting from new pumped storage projects. Nuclear capacity stands at 8.7GW, with the Kudankulam and Kakrapar plants playing key roles. The Bharat SMR programme is advancing, with tenders open for small modular reactors. These sources are vital for stability as variable renewables expand.
- Energy storage emerges as fastest-growing power segment
NEW DELHI, Aug 12 — India’s renewable energy capacity reached 185GW by June 2025, with storage taking centre stage in new tenders. Battery projects and pumped hydro dominate recent auctions, aiming to improve grid flexibility. States such as Maharashtra and Andhra Pradesh are advancing multi-gigawatt storage facilities. Policy incentives include viability gap funding and time-of-day pricing reforms. Industry forecasts suggest over 50GW of storage by 2030, sharply reducing renewable curtailments and enabling deeper clean energy integration.
- Coal strategy focuses on efficiency amid demand surge
NEW DELHI, Aug 12 — India plans an additional 80GW of coal-fired capacity by 2032, relying on ultra-supercritical technology to cut emissions per unit. Coal remains indispensable for meeting peak and baseload demand, even as its share of new capacity declines. State utilities are leading new builds, while private players remain selective. Coal India Limited’s record output ensures supply security, but logistical bottlenecks and environmental costs persist. Analysts see coal as a core part of India’s energy mix well into the 2030s.
- Refiners diversify crude imports as global oil flows shift
NEW DELHI, Aug 12 — Indian refiners are rebalancing crude sourcing as US tariffs and EU sanctions on Russian oil reshape trade flows. Imports from the US, Middle East, and Latin America are rising, with private refiners like Reliance and Nayara adjusting procurement strategies. Russian barrels remain competitive but face financing and insurance hurdles. Upstream investments, such as ONGC’s drilling campaigns, are intended to reduce import dependency amid global market volatility.
- Mega projects underline dual-track energy strategy
NEW DELHI, Aug 12 — Larsen & Toubro has secured a ₹15,000 crore contract from Adani Power for eight 800MW ultra-supercritical coal units. In hydrocarbons, ONGC is investing ₹4,600 crore in new wells in the Krishna-Godavari basin. Large-scale solar and pumped hydro projects are advancing in multiple states. These projects reflect India’s strategy of expanding fossil and clean capacity in parallel.
- Policy shifts balance affordability with investment incentives
NEW DELHI, Aug 12 — The Union Cabinet has approved a ₹30,000 crore package to compensate oil marketing companies for LPG subsidy losses. Arunachal Pradesh has set a 43 per cent Renewable Purchase Obligation by FY2030. National guidelines for time-of-day tariffs are being finalised to improve renewable integration. Policies are aimed at protecting consumers while driving private sector participation in energy infrastructure.
- EU commits $750bn to LNG procurement strategy
LONDON, Aug 12 — The European Union has pledged $750bn for long-term LNG procurement, benefiting US exporters. Sempra Infrastructure has signed a 20-year deal with Japan’s JERA, underlining resilient Asian demand. While Europe’s gas storage is healthy, policymakers are locking in supplies to guard against winter shocks. Critics warn the strategy could slow the bloc’s green transition.
- Global clean energy investment outpaces fossil fuels
LONDON, Aug 12 — Clean energy investment has surpassed fossil fuel spending for a third year, with solar capacity expected to top 400GW in 2025. Heatwaves in France have boosted demand even as nuclear output suffers from high river temperatures. China leads renewable additions, while the US accelerates offshore wind, despite permitting delays.
- Policy fragmentation fuels oil and gas market volatility
LONDON, Aug 12 — Sanctions on Russian energy, stalled US offshore wind plans, and Mexico’s fracking push are reshaping global oil and gas flows. Asian refiners continue to buy Russian crude despite rising logistical hurdles. Gas markets remain unsettled, with Asia seeing subdued LNG demand and Europe’s prices steady amid strong storage.
- Asian LNG prices slide as European gas stays steady
LONDON, Aug 12 — Asian spot LNG prices have fallen to a 10-week low due to weak demand and high inventories. European gas prices are flat, balancing comfortable storage with winter supply risks. Brent crude is range-bound at $68–$72 per barrel, while Asian coal prices edge higher on restocking demand.
- Smart grids and green hydrogen reshape energy transition
LONDON, Aug 12 — Technological advances in smart grids, green hydrogen, and large-scale storage are accelerating the global energy transition. Community-owned renewable projects are expanding in developing markets, while hydrogen pilots in Europe, Australia, and the Middle East target industrial decarbonisation. AI is being deployed to optimise energy dispatch and consumption forecasts.