India’s Energy Journey: Expanding Capacity, Strengthening Security

Key Highlights:

• India's total installed power capacity reached 552 GW by July 2026, with non-fossil sources accounting for over 54% (300.50 GW).
• India ranks third globally in renewable energy installed capacity and second in solar growth market in 2025.
• A ₹37,500 crore scheme was approved in May 2026 to promote surface coal/lignite gasification, targeting 100 MT by 2030.
• PM-Surya Ghar: Muft Bijli Yojana was launched with a ₹75,021 crore outlay for 1 crore households, achieving 14.8 GW rooftop solar capacity.
• The National Green Hydrogen Mission (NGHM), with a ₹19,744 crore outlay, targets 5 MMT green hydrogen production by 2030.
• The SHANTI Act, 2025 enables private sector participation in nuclear energy and grants statutory status to the Atomic Energy Regulatory Board (AERB).
• Samudra Manthan – National Offshore Exploration Scheme was approved with an ₹84,084 crore outlay to boost offshore oil and gas exploration.

Detailed Insights:

• Coal remains crucial, meeting 55% of primary energy needs and over 70% of electricity generation, with India being the world's second-largest producer.
• Coal production increased significantly to 1,047.52 MT in FY2024-25 and 1,040.08 MT in FY2025-26, reducing import dependence for thermal power plants.
• Pradhan Mantri Surya Sarovar Yojana was approved with a ₹5,070 crore outlay to develop 5,000 MW of floating solar PV projects with co-located storage.
• India's installed wind capacity reached 58.14 GW by July 2026, with a record 6.05 GW added in FY 2025–26, and manufacturing capacity at 24 GW.
• A ₹7,453 crore Viability Gap Funding (VGF) scheme was approved for 1 GW of offshore wind projects.
• GOBARdhan – National Circular Bioenergy Scheme was approved with a ₹23,731 crore outlay to nearly ten-fold domestic Compressed Biogas (CBG) production.
• The Small Hydro Power (SHP) Development Scheme was approved with a ₹2,584.60 crore outlay to add 1,500 MW capacity, especially in hilly and North-Eastern regions.
• India's nuclear power capacity is 8.78 GW, with a target to reach 100 GW by 2047, including the development of Small Modular Reactors (SMRs).
• The Prototype Fast Breeder Reactor at Kalpakkam achieved first criticality in April 2026, marking a key milestone in India's nuclear program.
• The National Policy on Geothermal Energy (2025) provides a framework for exploration and utilization, estimating India's potential at 10,600 MW.
• National LPG coverage increased from 55.9% in 2014 to 107.2% in 2026, with 25 lakh additional connections approved under Pradhan Mantri Ujjwala Yojana (PMUY).

Key Concepts Involved:

• Coal Gasification: A process that converts coal into synthetic gas (syngas), which can be used as fuel or for producing chemicals.
• PM-Surya Ghar: Muft Bijli Yojana: A scheme providing financial assistance for rooftop solar installations to 1 crore households, aiming for zero electricity bills.
• National Green Hydrogen Mission (NGHM): A flagship initiative to establish a green hydrogen ecosystem, targeting significant production capacity by 2030.
• SHANTI Act, 2025: Legislation enabling private sector participation in India's nuclear energy sector and strengthening regulatory oversight.
• GOBARdhan Scheme: An initiative to convert organic waste into bio-agro resources like CBG, promoting a circular bioeconomy.