UPSC CURRENT AFFAIRS – 12th July 2025

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India’s Energy Transition: 4,000% Solar Growth and Renewable Energy Milestones at IESW 2025

current affairs document india energy storage week 2025

Why in News?

  • India showcased its clean energy progress at India Energy Storage Week (IESW) 2025, highlighting a 4,000% rise in solar capacity and its near-achievement of the 50% renewable energy target.
india energy storage week 2025

Key Developments in Renewable Energy

  • Over the past ten years, India has recorded a 4,000 percent growth in installed solar capacity.
  • The country’s solar photovoltaic (PV) module manufacturing capacity has increased by 38 times, and PV cell manufacturing capacity has expanded 21-fold.
  • As of June 2025, India’s total installed power capacity stands at 476 gigawatts (GW), out of which 235.7 GW, or 49 percent, is from non-fossil fuel sources.
    • Renewable energy: 226.9 GW
    • Nuclear energy: 8.8 GW
  • India aims to achieve 500 GW of non-fossil fuel-based capacity by 2030 as part of its Nationally Determined Contributions (NDCs) under the Paris Agreement.

Energy Storage and Pumped Hydro Initiatives

Battery Energy Storage Systems (BESS)

  • Presently, India has only 205 megawatts (MW), or approximately 506 megawatt-hours (MWh), of installed battery energy storage capacity.
  • The Central Electricity Authority has set a target of scaling this up to 74 GW by 2031-32.
  • In the current year (2025), the government plans to add approximately 3,000 MW through hydro pumped storage projects.

Hydro Pumped Storage Projects (PSPs)

  • The current hydro pumped storage capacity stands at 5 GW.
  • The government aims to increase this to 50 GW within the next 5 to 6 years, which would provide critical support for grid balancing and ensure reliable renewable power delivery.
pumped hydropower storage

Green Hydrogen Mission

  • India has announced ambitious targets for green hydrogen as part of its clean energy transition.
  • Key goals include:
    • Producing 10 million tonnes of green hydrogen
    • Developing electrolyser capacity between 60 GW and 100 GW
  • These efforts are supported by the Rs 19,744 crore National Green Hydrogen Mission, which aims to reduce dependence on fossil fuels and support industrial decarbonization.
green hydrogen

Alignment with Climate Goals

India’s current trajectory is closely aligned with its international climate obligations. Under the Paris Agreement, India’s NDCs include:

  • Achieving 500 GW of non-fossil fuel capacity by 2030
  • Reducing emissions intensity of GDP
  • Promoting climate resilience and sustainable development
india clean energy progress from fossil fuels to renewables

Challenges and Way Forward

Key Challenges

Government Response and Strategy

Insufficient energy storage infrastructure

Accelerated development of BESS and PSPs

High dependence on imported critical minerals

Strengthening domestic exploration and diversified sourcing

Intermittency of renewable sources

Promotion of grid-scale storage and green hydrogen

Need for robust manufacturing ecosystem

Scaling domestic manufacturing of solar and energy storage components

India’s strategy now focuses on creating an integrated clean energy ecosystem that supports sustainability, energy security, and economic growth.

Economic Implications

For Indian Exporters

  • These reforms reduce transaction costs and compliance hurdles
  • Encourage a more competitive and efficient export environment
  • Promote value addition in key sectors like leather

For Tamil Nadu

  • The reforms particularly benefit the state’s leather industry, a major contributor to employment and exports
  • Boost the marketability of GI-tagged E.I. leather, enhancing rural and traditional industries

For Trade Policy

  • These decisions indicate a shift from regulatory controls to policy facilitation

Reinforce the goals of Make in India, Atmanirbhar Bharat, and India’s ambition to become a leading export power

Recently, BVR Subrahmanyam, CEO of NITI Aayog, claimed that India has overtaken Japan to become the fourth-largest economy in the world, citing data from the International Monetary Fund (IMF). 

India’s rank as the world’s largest economy varies by measure—nominal GDP or purchasing power parity (PPP)—each with key implications for economic analysis.

Significance and Applications

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