India's Energy Landscape Transformation

India's energy sector has undergone significant transformation, with total installed power capacity reaching approximately 552 GW in July 2026, up from 249 GW in 2014. Non-fossil fuel capacity stands at 300.50 GW as of 31 July 2026, accounting for over 54% of total installed capacity, positioning India as the third-ranked country globally in renewable energy installed capacity.

Coal Sector Performance and Initiatives

Coal continues to play a major role in India's energy security, meeting nearly 55% of primary energy needs and supporting over 70% of electricity generation. India produced 1,047.52 MT of coal in FY2024-25 and 1,040.08 MT in FY2025-26, compared with 609.18 MT in FY2014-15. Production from captive and commercial mines reached 210.46 MT in FY2025-26, registering 10.22% growth year-over-year. Coal imports by thermal power plants declined significantly to 45.4 MT in FY2025-26 from 62.5 MT in FY2024-25, representing a 27.4% reduction in import dependence.

The government approved a ₹37,500 crore scheme in May 2026 to promote surface coal/lignite gasification, expected to utilize approximately 75 MTPA of coal and contribute to the national target of 100 MT of coal/lignite gasification by 2030. The scheme is projected to mobilize ₹2.5–3 lakh crore in investment and generate around 50,000 direct and indirect jobs across 25 projects.

Renewable Energy Expansion

Solar Power

India's installed solar capacity reached 164.59 GW as of 31 July 2026, rising dramatically from 2.8 GW in 2014. India became the world's second-largest solar growth market in 2025, adding more than 37 GW of solar capacity, surpassing the United States which added 34 GW.

The PM-Surya Ghar: Muft Bijli Yojana, launched with a total outlay of ₹75,021 crore for 1 crore households in February 2024, has seen 51.58 lakh households benefiting from rooftop solar installations as of 12 August 2026. Approximately ₹28,024 crore in subsidy has been transferred to beneficiaries, with nearly 19 lakh households receiving zero electricity bills. Cumulatively, 14.8 GW of rooftop solar capacity has been commissioned under the scheme.

The Pradhan Mantri Surya Sarovar Yojana (PM-SSY) was approved on 31 July 2026 with an outlay of ₹5,070 crore, targeting 5,000 MW of Floating Solar PV projects with co-located storage of minimum two-hour duration equivalent to 10,000 MWh. Projects will be sanctioned from FY 2026–27 to FY 2030–31.

Wind Energy

Wind energy capacity stands at 58.14 GW as of 31 July 2026, with India ranking fourth globally. The sector added 6.05 GW in FY 2025–26, its highest-ever annual addition and 46% higher than FY 2024–25. Around 28 GW of additional wind capacity is under implementation. Wind turbine manufacturing capacity reached about 24 GW in March 2026, up from 10 GW in 2014, achieving 70–80% indigenisation across key components. The Union Cabinet approved a ₹7,453 crore VGF scheme on 19 June 2024 for 1 GW of offshore wind projects.

Bio-Energy

Bio-power capacity stands at 11.75 GW as of 31 July 2026, comprising 9,821.32 MW of bagasse-based and 1,048.84 MW of non-bagasse biomass cogeneration capacity. Waste-to-Energy capacity includes 324.24 MW grid-connected and 554.16 MW off-grid plants. The CBG ecosystem has expanded with 1,929 CBG/Bio-CNG plants registered as of 13 August 2026, of which 217 have been commissioned and 357 are under construction.

The GOBARdhan – National Circular Bioenergy Scheme was approved on 6 August 2026 with an outlay of ₹23,731 crore for FY 2026–27 to FY 2035–36, aiming to nearly ten-fold domestic CBG production and create a national circular bioeconomy.

Hydro Power

Hydropower capacity totals 57.24 GW as of 31 July 2026. The government approved the Small Hydro Power Development Scheme in March 2026 with an outlay of ₹2,584.60 crore for FY 2026–27 to FY 2030–31, aiming to add approximately 1,500 MW of small hydro capacity through projects of 1–25 MW, particularly in hilly and North-Eastern regions.

Emerging Energy Technologies

Green Hydrogen

The National Green Hydrogen Mission was launched in 2023 with an outlay of ₹19,744 crore, targeting 5 MMT of green hydrogen production by 2030. By February 2026, around 8,000 tonnes per annum of green hydrogen production capacity had been commissioned. In July 2026, the government launched 12 pilot projects for 70 hydrogen-powered vehicles across 21 routes. India's first indigenous hydrogen fuel cell-powered train began operations on the Jind–Sonipat section in July 2026.

Nuclear Energy

Nuclear power capacity stands at 8.78 GW as of 31 July 2026, with plans to increase to 100 GW by 2047. Capacity is projected to rise to 22.38 GW by 2031–32 through indigenous 700 MW and 1000 MW reactors. The Nuclear Energy Mission provides ₹20,000 crore for Small Modular Reactors, targeting at least five indigenous SMRs by 2033. The 500 MWe Prototype Fast Breeder Reactor at Kalpakkam achieved first criticality on 6 April 2026.

The SHANTI Act, 2025 enables private-sector participation in nuclear energy with maximum liability of 300 million Special Drawing Rights per nuclear incident and grants statutory status to the Atomic Energy Regulatory Board.

Geothermal Energy

The National Policy on Geothermal Energy was notified on 15 September 2025, with estimated potential of 10,600 MW across 381 hot springs. Five projects were sanctioned during July–August 2025, including a pilot production plant and solar–geothermal hybrid plant.

Fuel Infrastructure and Exploration

National LPG coverage increased from 55.9% in 2014 to 107.2% in 2026, with consumers growing from 14.51 crore to 33.18 crore. Under Pradhan Mantri Ujjwala Yojana, refill delivery reached around 49.21 crore cylinders in FY2025–26, with 24.84 lakh of 25 lakh additional connections released as of 5 August 2026. India is the world's fourth largest crude refiner with 258.1 million tonnes per annum capacity across 22 refineries.

The 'Samudra Manthan' – National Offshore Exploration Scheme was approved on 31 July 2026 with an outlay of ₹84,084 crore to boost offshore oil and gas exploration through seismic surveys, deepwater exploratory drilling, and infrastructure development.