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

India becomes third-largest renewable energy market in 2025 with 45 GW addition, driven by strong solar and wind growth amid global energy uncertainty, IRENA report shows

India emerged as the third-largest renewable energy market globally in 2025, after China and the United States, driven by rapid expansion in solar and wind capacity, the International Renewable Energy Agency (IRENA) said in its annual Renewable Capacity Statistics 2026 report.

 

Even amid global energy market turbulence, the country sustained strong momentum, adding around 45 GW of renewable capacity in 2025. This comes at a time when the West Asia crisis has highlighted the uncertainty of fossil fuel prices and supply chain vulnerabilities.

 

India’s installed renewable energy capacity in 2025 was 250.5 gigawatts (GW), which increased from 175.9 GW in 2023. The increase is driven by about 37 GW of solar energy capacity addition in 2025. While China contributed the most to global solar capacity addition, with over 315 GW added in a year, India was the second-highest contributor, followed by South Korea. Asia has more than doubled its installed solar power capacity since 2022, adding 317 GW in 2024 and 371 GW in 2025.

   

Wind energy additions globally reached a record high of over 158 GW in 2025, 14 per cent more than in the previous year. China led the expansion, contributing nearly three-quarters of the total capacity added, while India saw an increase of 6.3 GW, its highest annual increase. Meanwhile, hydropower installed capacity in India grew from 52 GW in 2024 to 56 GW in 2025, and pumped hydro increased from 4.7 GW to 7.2 GW in 2025, as per the IRENA report.

 

Globally, the renewable share of total installed power capacity rose by more than three percentage points from 46.3 per cent in 2024 to 49.4 per cent in 2025, the report said. However, the share of renewables in total capacity expansion in 2025 was 85.6 per cent, down from 92.0 per cent in 2024, it said. At the global level, 2025 saw a sharp rebound in non-renewable additions, which nearly doubled compared to 2024.

 

“In the midst of uncertain times, renewable energy remains consistent and steadfast in its expansion. This not only indicates market preference but also makes a strong case for renewable energy resilience with brutal clarity,” IRENA Director-General Francesco La Camera said.

 

He added that a more decentralised energy system, with a growing share of renewables and more market players, is structurally more resilient. Countries that invested in the energy transition are weathering this crisis with less economic damage, as they boost energy security, resilience, and competitiveness.

 

Overall, 2025 saw total renewable power capacity reach 5,149 GW after the addition of 692 GW, or a 15.5 per cent annual increase. The report finds renewable energy dominated total capacity expansion at an 85.6 per cent share, while non-renewables continue to account for a smaller share of additions.