A Global Push for Clean Energy
In 2025, as countries around the world race to meet ambitious clean energy targets, India stands out with bold policies, strong investment momentum, and a clear roadmap toward becoming a global renewable energy leader. The world’s largest economies—including China, the European Union, the United States, and India—have set the stage for a transformative shift in energy generation and consumption. These efforts are not only geared toward reducing emissions and combating climate change but also toward enhancing energy security, creating jobs, and stimulating economic growth.
China: Championing Capacity Expansion
China remains the frontrunner in renewable energy capacity additions. Under its 14th Five-Year Plan, the country aims to achieve 33% of its electricity from renewable sources by 2025. Additionally, China is expanding the use of renewable heat, signaling a more holistic shift toward clean energy. These policies have bolstered domestic clean technology industries and attracted large-scale investments in solar, wind, and hydropower.
European Union: Accelerating Green Manufacturing
The European Union is advancing its climate goals through the REPowerEU Plan, which raises its renewable energy target to 45% by 2030. Complemented by the Green Deal Industrial Plan, the EU is not only expanding clean energy generation but also strengthening its manufacturing base for solar panels, batteries, and hydrogen technologies. This integrated policy approach enhances both supply security and economic resilience across member states.
United States: Long-Term Incentives through the IRA
In the United States, the Inflation Reduction Act (IRA) has dramatically altered the renewable energy landscape. With provisions for long-term tax credits, grants, and loan guarantees, the IRA supports solar, wind, energy storage, and clean hydrogen. These incentives have catalyzed private investment, contributing to an unprecedented surge in project announcements and factory construction across the country.
Global Investment Trends
Global clean energy investment is expected to exceed USD 2 trillion in 2025, with renewable energy attracting twice the capital compared to fossil fuels. Solar energy leads the pack, emerging as the largest investment segment globally. Nationally Determined Contributions (NDCs), due for updates in 2025, remain the backbone of international climate goals—aiming to cap global temperature rise and accelerate emissions reductions.
However, challenges remain—particularly in ensuring equitable investment across regions, especially in developing economies, and in modernizing grid infrastructure to keep pace with rapid renewable deployment.
While global momentum is strong, India’s approach in 2025 is particularly noteworthy—blending innovation, policy support, and investment to drive rapid transformation in the clean energy space.
India: A Renewable Revolution Underway
India has emerged as a major force in the global energy transition, driven by a mix of proactive policies and ambitious targets. The government is committed to installing 50 GW of non-fossil fuel power capacity annually from 2023 to 2030, aiming to reach 500 GW by the end of the decade. This includes routine tenders for solar, wind, hybrid, and energy storage projects, providing consistent visibility for developers.
Key Policy Initiatives
India has adopted a liberalized FDI policy allowing 100% foreign investment in renewable energy projects, significantly boosting global investor confidence. It has also implemented regulations such as inter-state transmission charge waivers and Renewable Purchase Obligations (RPOs), along with Production Linked Incentive (PLI) schemes for domestic solar PV manufacturing.
The recently launched Carbon Credit Trading Scheme incentivizes companies to reduce emissions while creating a formal market for trading credits. At the state level, Madhya Pradesh’s RE Policy 2025 offers a 50% waiver on wheeling charges for renewable projects for five years, further lowering project costs and stimulating adoption.
Major Incentive Programs
The PLI scheme, with an allocation of ₹14,007 crore, is expected to create over 100,000 jobs and strengthen India’s domestic solar module manufacturing capacity. Rooftop solar adoption is being promoted through the PM Surya Ghar Yojana and Phase-II of the Rooftop Solar Programme, which offer subsidies and financial support to households and commercial users.
In addition, the National Bioenergy Programme supports biogas and biomass projects, with a focus on compressed biogas for transportation. The Solar Park Scheme has also been extended to 2026, supporting utility-scale solar development through the provision of ready-to-use infrastructure across various states.
Budget and Fiscal Measures
India’s 2025 Union Budget includes proposals to extend tax holidays, reduce corporate tax rates for renewable energy firms, and offer green hydrogen tax credits. Stakeholders are also pushing for GST reductions and duty cuts to lower equipment costs. The government is exploring blended finance models to de-risk private investment and is setting up innovation hubs to nurture clean energy startups.
These combined efforts have led to record-breaking renewable energy investments and capacity additions, placing India on a firm path toward energy independence, emissions reduction, and economic leadership in the global clean energy race.
Looking Ahead: Energy Evolution Awards & Conference 2026
As the world continues to navigate the energy transition, the Energy Evolution Awards & Conference 2026 will serve as a pivotal platform for dialogue, recognition, and collaboration. Scheduled to gather policymakers, innovators, and investors from around the world, the conference will spotlight breakthrough technologies, sustainable financing models, and policy innovations that are shaping the future of energy. India’s progress in renewable energy is expected to take center stage, showcasing its role as a global leader in sustainability and innovation.
References
2. PIB – Renewable Energy Factsheet
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