Renewable Energy Share Grows While Oil and Gas Imports Rise: Report

Key Takeaways

India’s renewable energy share in electricity generation increased to 20.2% in FY25, up from 14.2% in FY16.
Over 70% of the country’s renewable potential is concentrated in six states, with Rajasthan leading at 23.7%.
Energy import dependency rose to 40.6% in FY25, reflecting higher domestic demand and increased reliance on external sources.

Renewable Energy Growth in India

According to a recent government report from the Ministry of Statistics and Programme Implementation (MoSPI), India has made significant strides in expanding its renewable energy portfolio. The report, titled ‘Energy Statistics India 2026,’ highlights that the share of renewable energy in the country’s total electricity generation climbed to 20.2% in FY25, a notable increase from 14.2% in FY16. This shift indicates a commitment to transitioning to cleaner energy sources, although coal still plays a prominent role in the energy mix.

Over the past decade, the reliance on non-renewable energy sources has decreased, falling from 85.8% to 79.8%. The report emphasizes that approximately 70% of India’s renewable energy potential is concentrated in just six states. Rajasthan leads the way with 23.7%, followed by Maharashtra (14.3%), Gujarat (9.1%), Andhra Pradesh (9.1%), Karnataka (8.6%), and Madhya Pradesh (8.1%).

To support the sustainable expansion of energy resources, the report underscores the importance of investing in necessary infrastructure. Reflecting this commitment, the outstanding credit extended to the renewable energy sector surged sixfold, reaching Rs 10,325 crore in FY25, a significant leap from Rs 1,688 crore in FY21.

Despite this growth in renewable energy, India’s energy demand has increased substantially. Per capita energy consumption rose by 18.3%, reaching 18,096 megajoules per person in FY25, up from 15,296 megajoules per person in FY16. This surge in demand has led to a greater dependency on imported energy sources.

The report indicates that while the renewable energy sector expands, coal remains dominant, providing the largest share of total energy supply. Additionally, higher domestic demand has resulted in increased import dependence. Crude oil imports rose to 89.4% in FY25 from 84.6% in FY16, and natural gas imports significantly increased to 49.7% from 39.9%. Coal import dependency, however, has shown a slight improvement, decreasing to 23.5% in FY25 from 27.3% in FY16.

Overall, India’s total energy import dependency increased to 40.6% in FY25 from 37.8% in FY16, highlighting the challenges posed by rising domestic energy demands and the nation’s ongoing reliance on external sources to meet its energy needs. As India continues to invest in renewable energy and develop the necessary infrastructure, balancing domestic energy production with import needs remains a critical focus for the country’s energy strategy moving forward.

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