Renewable Energy Outlook 2025: India and Global Jayesh Patil August 18, 2025

Every country is in the race to reduce the carbon footprint in response to climate change emergency. This has led to advancements of the renewable energy sector. These developments are flourishing in 2025, and promise to shape the future of the renewable energy both in India and in world.

India’s Ambitious Renewable Energy Targets

The Indian government is setting ambitious targets and best policies to enforce the use of renewable energy in India. Due to this, India has emerged as a global powerhouse in the renewable energy sector. There is an ambitious goal set to develop 500 GW of renewable energy capacity by 2030, primarily based on solar and wind power.

As per the statistics in 2024, 203.18 GW of renewable energy capacity has been installed. This accounts for more than 46.3% of the total installed generation capacity of the country. This rapid expansion is a result of different factors. It includes considerable promotion through policies, reduction in technology costs and higher investments from the private sector. This growth will be further driven by the following key trends:

Solar Power

Solar power has truly been the backbone of India’s renewable energy revolution. It is now ranked the third-largest solar market in the world. The solar capacity in India has reached one of the highest about 92.12 GW at the end of 2024.

The various initiatives of the Indian government have contributed to this explosion in capacity. Some of schemes include Jawaharlal Nehru National Solar Mission and the Production Linked Incentive (PLI) for solar manufacturing.

Wind Power

The wind energy sector has also greatly contributed to the growth of the Indian economy and stands fourth in the world in installed wind capacity. As of 2024, the wind power capacity in the country is about 47.72 GW.

The compact and efficient wind turbines have led to different opportunities to set up wind power plants in India. Wind energy-rich zones are coming into development which has increased the growth of India’s wind power sector. The government has been working on wind energy-specific policies. It includes the National Wind-Solar Hybrid Policy and Offshore Wind Energy Policy, which has increased the pace of this sector.

Bioenergy and Hydropower

The scope of renewable energy in India extends beyond solar and wind energies, with bio-energy and hydro power contribution.

Bioenergy, consisting of biomass and biogas, has augmented 11.32 GW to India’s renewable energy capacity. It is generated by agricultural wastes and other organic materials.

Hydropower has kept an important position in the renewable energy market, contributing to 46.93 GW (large hydropower plants) and 5.07 GW (small hydropower plants).

Energy Storage and Grid Integration

The Government of India has emphasized the importance of energy storage technologies for the reliable integration of renewable energy into the grid.

One of the concepts is of the prosumers. Prosumers simply mean that people produce and consume the energy by setting up solar panels. When this energy is in excess this can be sent back to the grid too.

The development of a and large-scale battery storage projects has accelerated the deployment of energy storage solutions as a means to mitigate the intermittent nature of renewables.

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A Global Perspective of The Renewable Energy Revolution

On a global scale renewable energy has undergone a spectacular transformation of its own with an unprecedented surge in growth. To understand better, here are the major trends constituting the global renewable energy outlook for 2025:

Green Hydrogen

One of the most common topics being discussed in the world is the advent of green hydrogen as a clean fuel. Green hydrogen is generated by hydrolysis using electrical power from solar and wind sources. It is expected to decarbonize many sectors, including heavy industry, long-haul transportation, and power generation.

Governments and industries around the world have poured money into the green hydrogen production, storage, and distribution infrastructure. The IEA anticipates that global hydrogen demand may increase by 7 times in 2050, with a share belonging to green hydrogen.

Renewable Energy and Electric Vehicles

Another important trend that has gained attention in recent times is the intersection between renewable energy and electric vehicles (EVs). Faster adoption of electric vehicles is strongly accompanied by higher demand for clean, renewable energy to charge these vehicles.

Also, renewable sources such as solar and wind are being integrated into the charging infrastructure for EVs. This reduces transportation emissions while potentially increasing means for the renewable energy provider to generate revenue.

Renewable Energy and Carbon Management

With increasing emphasis on environmental, social, and governance (ESG) aligned practices, there is a growing demand for high-integrity carbon offsets. The renewable energy sector is therefore one of the most important aspects of it. The renewable powered carbon capture, utilization, and storage (CCUS) technologies is also being utilized to lower carbon emissions.

Renewably powered direct air capture (DAC) plants are also rising as a method of removing carbon dioxide from the atmosphere.

Overall, such practices reduce the carbon footprint in the atmosphere. Along, with that it also generates a revenue stream for renewable energy industries.

Conclusion

The renewable energy industry can further benefit by strengthening policy and regulatory frameworks. These lead to better technological innovation, grid integration, and developing human resources for shaping a cleaner, resilient, and equitable energy environment. Looking forward to 2025 and beyond, the renewable energy transformation will remain one of the most important things in the global search for a sustainable tomorrow. Contact us to learn how our IoT expertise drives your renewable energy innovation.