A new study highlights that India needs to meet its increasing electricity demand reliably and affordably by relying on non-fossil fuel sources by 2030. The country is expected to face an additional demand of 600 gigawatts (GW) of electricity by that year. This transition could lead to a reduction in generation costs by 6-18 paise per unit, save up to Rs 42,000 crore, and create around one lakh additional jobs.
The study, titled How Can India Meet Its Rising Power Demand? Pathways to 2030, was conducted by the Council on Energy, Environment and Water (CEEW). It analysed India's power system dispatch every 15 minutes for the year 2030. This research follows the country's record power demand of 238 GW reached in February 2025, with peak demand expected to rise to 260 GW during the summer months. The increase in demand is surpassing earlier projections due to unusually warm weather.
According to the study, India must expand its non-fossil fuel capacity to 600 GW by 2030 to meet its growing electricity needs in an environmentally sustainable and affordable way. Renewable energy sources are identified as the cheapest and most viable option to meet this demand. If power consumption continues to grow beyond current projections due to climate change or strong economic growth, a high renewable energy pathway of 600 GW of non-fossil capacity by 2030 is the best solution.
The study calculated the contribution of different renewable energy sources to achieving this goal. Solar energy is expected to be the major contributor, accounting for around 377 GW, followed by wind energy at 148 GW, hydro power at 62 GW, and nuclear energy at 20 GW.
The report also identified several challenges in transitioning to clean energy, such as land procurement, timely grid connectivity and balancing, supply chain constraints, and untied capacity under central auctions.
“We have set ambitious targets to increase the capacity of non-fossil fuels and reach net zero by 2070,” said Shripad Yesso Naik, Minister of State for Power and New and Renewable Energy, during the release of the study. “Our clean energy journey has been remarkable — from 76 GW in 2014 to 220 GW in 2025 of non-fossil capacity. Every state must leverage its unique RE potential. A clean grid must serve consumers efficiently while ensuring financial viability for discoms.”
Ghanshyam Prasad, Chairperson of the Central Electricity Authority, also emphasized the importance of affordable energy generation and distribution. “Our policies must continually address the affordability of power, which drives industry and growth,” he said. He further highlighted the need for annual scientific studies to assess each state's resources and requirements to tackle offtake issues.
“Further, delivering RE targets must be a joint effort between the Centre and states. We need to consider the comfort of each state in buying power depending on demand patterns as well,” he added.