India has emerged as the third-largest renewable energy market globally in 2025, following China and the United States, according to the latest report by the International Renewable Energy Agency.
The achievement reflects India’s rapid expansion in solar and wind energy capacity, even as global energy markets faced uncertainty.
Strong Growth Despite Global Challenges
Amid geopolitical tensions and volatility in fossil fuel markets, India maintained strong momentum by adding approximately 45 gigawatts (GW) of renewable energy capacity in 2025.
This growth comes at a time when crises, particularly in West Asia, have exposed the risks associated with fossil fuel dependency, including price fluctuations and supply chain disruptions.
Installed Capacity Sees Major Jump
India’s total installed renewable energy capacity rose significantly:
- 2023: 175.9 GW
- 2025: 250.5 GW
A major driver of this growth was solar energy, which alone contributed around 37 GW of new capacity in 2025.
Globally, while China led solar capacity addition with over 315 GW, India ranked second, followed by South Korea. Asia as a whole has seen a massive surge, more than doubling its solar capacity since 2022.
Wind and Hydropower Also Gain Momentum
The year 2025 also witnessed strong growth in wind energy:
- Global wind additions crossed 158 GW, a record high
- India added 6.3 GW, its highest annual wind capacity increase
Hydropower and pumped storage capacity in India also expanded:
- Hydropower: Increased from 52 GW (2024) to 56 GW (2025)
- Pumped hydro: Rose from 4.7 GW to 7.2 GW
Global Renewable Energy TreGnds
Globally, renewable energy continued to dominate power capacity expansion:
- Total global renewable capacity reached 5,149 GW
- Increase of 692 GW in 2025 (15.5% annual growth)
The share of renewables in total installed power capacity rose from:
- 46.3% in 2024 → 49.4% in 2025
However, the share of renewables in total capacity additions declined slightly:
- 92.0% (2024) → 85.6% (2025)
This was due to a temporary rebound in non-renewable energy additions.
Renewable Energy Proves More Resilient
Francesco La Camera, Director-General of IRENA, highlighted that renewable energy continues to grow steadily even during uncertain times.
He emphasized that:
- Renewable energy systems are more resilient and decentralised
- Countries investing in clean energy are experiencing less economic disruption
- Energy transition improves security, competitiveness, and sustainability
Conclusion
India’s rise as the third-largest renewable energy market underscores its growing role in the global clean energy transition. With continued investments in solar, wind, and hydropower, the country is steadily moving toward a more sustainable and energy-secure future.