India’s clean energy moonshot runs into headwinds

India has set a bold target to generate clean power capable of supplying electricity to more than a billion homes by 2035, committing nearly $20 billion to upgrade power grids to accommodate this expansion. This goal, announced in late September, nearly doubles India's existing target of 500 gigawatts of clean power by 2030 and focuses on non-fossil fuel sources like solar, wind, hydropower, and nuclear energy.

Meeting this ambitious target could lead to lower electricity costs, reduced coal construction, and a faster transition to clean energy sources. However, India's current clean power capacity stands at just over 300 gigawatts, ranking third in the world behind China and the United States. The primary challenge lies in the inadequate transmission infrastructure, which prevents India from fully utilizing the renewable electricity it can generate.

Nikit Abhyankar from the India Energy and Climate Centre at the University of California, Berkeley, emphasizes that a robust transmission grid is crucial for India to meet its clean energy goals. The government's approval of nearly $20 billion for transmission infrastructure and battery storage under its Green Energy Corridor plan is a step in the right direction.

Economist Ajay Shah describes the shift towards cleaner power as the emergence of an "Indian electrostate," where electricity increasingly replaces coal and petroleum products.

The shift towards clean energy mirrors a global trend, with Brazil and the United States also embracing renewable sources. However, India's continued dependence on coal remains a significant challenge, as it generated about 71% of the country's electricity in 2025. While coal-generated power could become economically unfeasible under the new clean energy goals, existing coal plants pose operational challenges, as many cannot quickly adjust their output when renewable electricity becomes available.