Renewable energy trends in 2025

The rise of green energy wave in India

Renewable energy trends in 2025

The rise of green energy wave in India

Introduction


In recent years, renewable energy has gained significant momentum, driven by the rising consciousness to reduce carbon emissions. By 2025, the renewable energy landscape is expected to evolve further, with new trends emerging in renewable energy sources, technologies, and market dynamics. India alone, is projected to see robust growth in renewable energy, smart grids, and electric vehicles by 2025.  

India's energy demand is expected to increase more than that of any other country in the coming decades due to its size and enormous potential for development. The GoI aims to achieve net zero carbon emissions by 2070. To that effect, we must meet our bubbling energy demands by low-carbon resources. 

As of 2023, India ranked fourth in both wind and solar power capacity, and in total renewable energy capacity. The country’s renewable energy capacity has been growing quickly, with an annual growth rate of 15.4% from 2016 to 2023. By the end of FY23, India had 125.15 GW of renewable energy capacity. It is the fastest-growing market for renewable electricity, and by 2026, it's expected that the country will add even more capacity, possibly doubling its current figures.  

With strong government support and improved economics, the renewable energy sector has become an appealing area for investors. As India’s energy demand is projected to reach 15,820 TWh by 2040, renewable energy will be key to meeting this growing need.

Renewable energy and its global impetus


The renewable energy sector has undergone significant transformations in recent years, primarily influenced by technological innovations, government incentives, and a growing global commitment to combat climate change. One of the most notable clean energy trends is the increasing efficiency of renewable energy technologies. Solar and wind energy have witnessed remarkable improvements in energy generation efficiency, making them more competitive with traditional fossil fuels.

Another significant trend is the rise of decentralized energy systems, where energy generation and storage are localized. This shift allows for greater energy resilience and autonomy, especially in remote or off-grid areas. Solar panels, small-scale wind turbines, and home batteries are becoming more accessible to residences and offices, thus reducing dependence on centralized power grids.

The renewable energy industry is also embracing digital transformation, with advanced data analytics and artificial intelligence (AI) playing crucial roles in optimizing energy production and distribution. Smart grids, which enable real-time energy monitoring and dynamic adjustments, are being integrated into energy systems, resulting in better load management and enhanced grid stability. 

In addition, energy storage technologies have made considerable advancements. Batteries, particularly lithium-ion batteries, are now more affordable and efficient, enabling the storage of excess energy generated during peak production times for later use. This addresses one of the key challenges of renewable energy: intermittency.

 

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The tide of renewable energy trends in India 


India is poised to play a central role in the global transition to renewable energy. The country’s vast geographical diversity and abundant natural resources offer immense potential for renewable energy generation. In recent years, India has made significant strides in expanding its renewable energy capacity, particularly in solar and wind energy. 

One of the most notable recent trends in renewable energy in India is the country’s ambitious commitment to achieve 500 GW of non-fossil fuel capacity by 2030. To meet this target, India is focusing on scaling up solar power installations, wind energy projects, and green hydrogen production. The government’s incentives, such as tax rebates and subsidies for renewable energy projects, are helping to drive investments in the sector. 

India's total electricity generation capacity has reached 452.69 GW, with renewable energy making up a significant part of the mix. By October 2024, renewable energy capacity stood at 203.18 GW, which is over 46.3% of the country's total capacity. This shows a major shift in India’s energy use, as the country increasingly depends on cleaner, non-fossil fuel sources. 

Several renewable resources contribute to this growth. Solar power leads with 92.12 GW, making the most of India’s abundant sunlight. Wind power follows with 47.72 GW, thanks to the country’s large wind corridors. Hydroelectric power is another important source, with large hydro projects contributing 46.93 GW and small hydro adding 5.07 GW, harnessing energy from India’s rivers. 

 Additionally, India has seen a surge in rooftop solar installations, particularly in urban areas. With the decreasing cost of solar panels and the availability of financing options, residential and comercial buildings are increasingly adopting solar energy as a sustainable solution to meet their electricity needs. 

Biopower, which includes biomass and biogas, adds another 11.32 GW, using agricultural waste and other organic materials for power generation. These renewable energy sources are helping India reduce its reliance on fossil fuels, moving toward a more sustainable energy future. 

The country’s growing renewable energy market has attracted international investors, and India’s renewable energy sector is now one of the most attractive in the world. As of 2023, India has become the world’s third-largest solar market and continues to be a leader in the deployment of large-scale solar and wind projects.
 

Renewable energy and its global impetus 


The renewable energy sector has undergone significant transformations in recent years, primarily influenced by technological innovations, government incentives, and a growing global commitment to combat climate change. One of the most notable clean energy trends is the increasing efficiency of renewable energy technologies. Solar and wind energy have witnessed remarkable improvements in energy generation efficiency, making them more competitive with traditional fossil fuels.

Another significant trend is the rise of decentralized energy systems, where energy generation and storage are localized. This shift allows for greater energy resilience and autonomy, especially in remote or off-grid areas. Solar panels, small-scale wind turbines, and home batteries are becoming more accessible to residences and offices, thus reducing dependence on centralized power grids.

The renewable energy industry is also embracing digital transformation, with advanced data analytics and artificial intelligence (AI) playing crucial roles in optimizing energy production and distribution. Smart grids, which enable real-time energy monitoring and dynamic adjustments, are being integrated into energy systems, resulting in better load management and enhanced grid stability. 

In addition, energy storage technologies have made considerable advancements. Batteries, particularly lithium-ion batteries, are now more affordable and efficient, enabling the storage of excess energy generated during peak production times for later use. This addresses one of the key challenges of renewable energy: intermittency.

 

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Clean energy trends in 2025: Painting the town green  


As we look ahead to 2025, several clean energy trends are expected to shape the future of the renewable energy industry. One of the most significant trends is the continued decrease in the cost of renewable energy production.

 1. Solar and wind energy, which have already become more affordable in recent years, are expected to become even cheaper, making them more accessible to both developed and developing nations.

2. Another clean energy trend that is likely to dominate in 2025 is the widespread adoption of hydrogen as a clean fuel. Hydrogen, produced through renewable energy sources like wind or solar power, is seen as a promising solution for decarbonizing industries that are hard to electrify, such as heavy transportation, steel manufacturing, and chemical production. The development of hydrogen infrastructure and technologies will be crucial to realizing its potential as a mainstream energy source.

3. Electric vehicles (EVs) will continue to grow in popularity, driving demand for renewable energy to charge the increasing number of EVs on the road. The integration of renewable energy sources with EV charging infrastructure will be a key component of reducing emissions from the transportation sector

4. As renewable energy production, such as solar and wind, relies on intermittent sources, energy storage technologies will continue to evolve. By 2025, we will see more efficient and affordable energy storage solutions, particularly large-scale batteries, which will be critical to balancing supply and demand and ensuring grid stability in renewable-powered systems

5. The interplay of solar power and electric vehicles (EVs) is expected to grow significantly in the next few years. By 2025, we’ll see a surge in solar-powered EV charging stations, allowing drivers to charge their vehicles using clean, renewable energy


In addition, as nations ramp up their commitment to achieving net-zero emissions by mid-century, the role of renewable energy will become even more prominent in national energy mixes. The integration of renewable energy into industries like agriculture, manufacturing, and construction will further contribute to the global transition to clean energy.
 

Ahead and beyond: Future trends in renewable energy
in India 


Looking towards 2025 and beyond, renewable energy trends in India are expected to continue on a positive trajectory. One key trend is the increased integration of renewable energy with electric mobility. With the government’s push for electric vehicles, India is investing in the development of renewable-powered EV charging infrastructure. This will not only reduce emissions from transportation but also provide a clean, sustainable energy source for the country’s growing fleet of electric vehicles.

Another future trend is the development of energy storage systems to complement India’s renewable energy initiatives. As the country’s reliance on solar and wind power increases, efficient energy storage solutions will be crucial to balancing supply and demand, especially during periods of low generation. By 2025, India is expected to have made significant progress in large-scale battery storage projects, helping to stabilize the grid and reduce energy waste.

India is also exploring the potential of green hydrogen as a key energy source. As part of its broader commitment to decarbonize its economy, India is investing in the production of green hydrogen using renewable energy, which could revolutionize sectors like heavy industry and transportation. 
 

Bottom line


Transforming the power distribution sector is not just an industry necessity but a collective responsibility that impacts every aspect of our lives. The urgent need for reform is highlighted by the challenges we've explored; from aging infrastructure and financial constraints to regulatory hurdles and technological gaps. By rethinking our strategies and embracing innovative solutions, we can overcome these obstacles. Tata Power's progressive initiatives showcase how the integration of advanced technologies, a commitment to sustainability, and a focus on customer empowerment can redefine the energy landscape. Their efforts exemplify the remarkable progress possible when visionary ideas are put into action. 

However, the journey toward a sustainable and efficient power distribution system cannot be undertaken by one organization alone. It requires the unified efforts of governments crafting supportive policies, private enterprises driving innovation and efficiency, consumers engaging in responsible energy use, and regulatory bodies ensuring transparency and fairness. As we stand on the brink of a new era, the collaborations and decisions we make today will shape the energy future for generations to come. By joining forces and committing to common goals, we can build a resilient, inclusive, and sustainable energy ecosystem. Let us seize this opportunity to power positive change and illuminate a brighter future for all. 
 

Sources

1. Top 7 largest solar floating plants in India

2. India’s renewable energy growth Solar power and more