India Needs 600 GW of Clean Energy by 2030 to Meet Growing Demand: CEEW

India must accelerate its clean energy transition and aim for 600 GW of non-fossil fuel capacity by 2030 to ensure a reliable and cost-effective power supply, according to a new study by the Council on Energy, Environment, and Water (CEEW).

The report, 'How Can India Meet Its Rising Power Demand? Pathways to 2030' was launched at the National Dialogue on Powering India’s Future in Delhi. It is the first study to model India’s power system dispatch in 2030 at 15-minute intervals, offering insights into future electricity demand and supply scenarios.

The study found that if India’s electricity demand grows as projected by the Central Electricity Authority (CEA), the country’s existing, under-construction, and planned clean energy capacities would be sufficient to meet its power needs. However, if demand increases at a faster rate due to economic growth or extreme weather patterns, a high renewable energy pathway, scaling up to 600 GW of non-fossil capacity, would be the most viable and cost-effective solution. The event was attended by key stakeholders, including Shripad Yesso Naik, Minister of State for Power and New and Renewable Energy; Ghanshyam Prasad, Chairperson of the Central Electricity Authority; and Suresh Prabhu, Former Union Cabinet Minister and Trustee of CEEW, along with officials from distribution companies and the private sector.

The report highlights that increasing renewable energy capacity to 600 GW by 2030, comprising 377 GW of solar, 148 GW of wind, 62 GW of hydro, and 20 GW of nuclear power, would help India meet its growing electricity demand while reducing costs. The urgency of this transition is underscored by the fact that India’s power demand hit a record 238 GW in February 2025, with peak demand expected to exceed 260 GW this summer due to rising temperatures.

Speaking at the launch, Shripad Yesso Naik emphasised the government’s commitment to clean energy expansion. He highlighted that India’s clean energy journey has been remarkable, growing from 76 GW in 2014 to 220 GW in 2025, and stressed that achieving net zero by 2070 is a crucial step for a Viksit Bharat (Developed India). He added that the CEEW report provides timely insights into the pathways for achieving India’s 2030 goals.

Suresh Prabhu called for proactive planning to ensure a high renewable share in India’s energy mix. He stated that scaling up to 600 GW requires a future-ready policy and regulatory framework. While the government is taking bold steps, stronger policies, industry collaboration, and research-driven solutions are critical to tackling grid management, deployment, and financing challenges.

The study underscores key challenges in India’s clean energy transition, including land procurement issues, transmission constraints, grid balancing, and untied capacity in central auctions. It warns that if India falls short of its clean energy targets and installs only 400 GW of non-fossil capacity by 2030, power shortages could emerge, necessitating the addition of 10-16 GW of new coal capacity and significant transmission infrastructure upgrades. Ghanshyam Prasad stressed the importance of affordability and centre-state coordination, noting that annual scientific studies must guide resource planning and power procurement decisions. He added that increasing electricity trade in power markets will help address offtake issues and optimise costs.

The report highlights the economic and environmental advantages of scaling up to 600 GW. It suggests that increasing clean energy capacity could reduce power generation costs by 6-18 paise per unit and lower procurement costs by INR 13,000 crore to INR 42,400 crore. Additionally, the expansion could create between 53,000 and 100,000 new jobs while reducing carbon emissions by 9-16 percent compared to FY24. Avoiding new coal plants would further enhance India’s energy security and environmental sustainability.

To ensure smooth integration of renewables, the study recommends investing in 70 GW of four-hour battery energy storage systems (BESS), 13 GW of pumped hydro storage, and retrofitting 140 GW of coal capacity for better grid flexibility. The declining cost of battery storage supports a high-RE pathway, with standalone battery storage tariffs dropping by 65 percent in the last two years without subsidies. The report also acknowledges recent policy progress, such as the government’s mandate for all future solar tenders to include energy storage with at least two hours of capacity to improve grid stability.

The study assumes that the Market-Based Economic Dispatch (MBED) mechanism will be fully operational by 2030. However, if delayed, India may require even higher storage capacities to absorb fluctuating renewable energy generation. Additionally, 60 percent of the coal-based fleet must become highly flexible, with a minimum 40 percent loading, to support grid stability.

India is at a critical juncture in its clean energy transition. Achieving 600 GW of non-fossil capacity by 2030 is essential not just for meeting rising power demand, but also for ensuring energy security, reducing emissions, and maintaining economic competitiveness. The CEEW study provides a comprehensive roadmap for policymakers, industry leaders, and investors to accelerate India’s clean energy journey.