India emerges as third-largest renewable energy market in 2025: IRENA

• India became the world’s third-largest renewable energy market in 2025.

• Added 45 GW in 2025; total capacity reached 250.5 GW.

• Solar led growth with 37 GW added; strong wind and hydro expansion.

• Asia’s solar capacity more than doubled since 2022.

• Renewables formed 85.6% of global capacity additions in 2025.

• Transition boosts energy security, resilience, and long-term economic stability.

  
  

India has cemented its position as the world’s third-largest renewable energy market in 2025, trailing only China and the United States, according to the International Renewable Energy Agency’s (IRENA) Renewable Capacity Statistics 2026 report. The milestone reflects the country’s accelerated push in expanding solar and wind power capacity, even as global energy markets grapple with uncertainty.

Despite turbulence in international fuel markets and concerns over supply chain disruptions intensified by the West Asia crisis, India maintained impressive growth in clean energy installations. In 2025 alone, the country added approximately 45 gigawatts (GW) of renewable energy capacity, underscoring its commitment to reducing dependence on fossil fuels.

India’s total installed renewable capacity climbed to 250.5 GW in 2025, a substantial rise from 175.9 GW in 2023. Solar power was the primary driver of this expansion, accounting for nearly 37 GW of new installations during the year. While China dominated global solar additions with more than 315 GW added in a single year, India ranked second in annual solar growth, followed by South Korea. Across Asia, solar deployment has accelerated dramatically, with installed capacity more than doubling since 2022. The region added 317 GW in 2024 and a further 371 GW in 2025.

Wind energy also recorded significant global gains. Worldwide additions reached a record-breaking 158 GW in 2025—an increase of 14 percent compared to the previous year. China contributed close to three-quarters of that total, but India also achieved its strongest annual performance in wind capacity, expanding by 6.3 GW.

Hydropower development continued steadily within India. Installed hydro capacity increased from 52 GW in 2024 to 56 GW in 2025. Pumped hydro storage, a key component in balancing renewable energy supply, saw particularly notable growth, rising from 4.7 GW to 7.2 GW over the same period.

Globally, renewable energy’s share of total installed power capacity rose from 46.3 percent in 2024 to 49.4 percent in 2025—an increase of more than three percentage points. Renewables accounted for 85.6 percent of total capacity additions during the year. However, this represented a slight dip from 92 percent in 2024, as non-renewable energy sources experienced a marked rebound, nearly doubling their additions compared to the previous year.

IRENA Director-General Francesco La Camera emphasized that the continued growth of renewables during volatile times demonstrates their structural strength. He noted that expanding renewable systems are not only meeting market demand but also proving their resilience in the face of geopolitical and economic instability.

La Camera further pointed out that energy systems built on decentralised renewable sources tend to be more robust. Countries that have consistently invested in transitioning away from fossil fuels are navigating current disruptions with comparatively lower economic strain, benefiting from improved energy security, stability, and competitiveness.

On a global scale, renewable power capacity reached 5,149 GW in 2025 following the addition of 692 GW over the year—a 15.5 percent annual increase. Although non-renewable energy sources saw renewed growth, renewables continued to dominate overall capacity expansion, reinforcing their central role in the evolving global energy landscape.

India’s rise in the rankings signals more than numerical progress. It reflects a broader transformation in the country’s energy strategy—one that prioritizes sustainability, resilience, and long-term economic stability amid an increasingly unpredictable global environment.