ISO 9001:2015

INTERNATIONAL JOURNAL OF ADVANCED RESEARCH IN COMMERCE, MANAGEMENT & SOCIAL SCIENCE (IJARCMSS) [ Vol. 9 | No. 3 (III) | July - September, 2026 ]

Capacity without Generation: A Comparative Analysis of India's Installed Power Capacity and Electricity Generation Mix, 2014-2026

CA (Dr) Sumit Bishnoi

India's power sector has reached a widely publicised capacity milestone: non-fossil sources crossed 50 per cent of total installed generation capacity in June 2025, five years ahead of the target set under India's Nationally Determined Contribution, and independent capacity trackers report that clean energy sources overtook fossil-fuel capacity for the first time by August 2026. Yet these capacity-side achievements coexist with a far more modest transformation in actual electricity generation: non-fossil sources supplied only 29.2 per cent of total output in FY 2025–26, and coal alone continued to generate more than two-thirds of the country's electricity. This paper undertakes a descriptive-comparative analysis of India's installed capacity mix and its generation mix over 2014–2026, drawing on official data from the Ministry of Power, the Ministry of New and Renewable Energy, the Press Information Bureau, and independent trackers including Ember, Global Energy Monitor, and Climate Action Tracker. The analysis documents a widening structural gap between capacity growth and generation growth, driven principally by the differential in capacity utilisation between intermittent renewable sources and dispatchable thermal plants, compounded by rapidly rising electricity demand and limited grid-scale storage. The paper argues that capacity statistics, while a valid signal of investment direction and future intent, should not be conflated with the present composition of electricity actually consumed, and that closing the gap requires sustained investment in transmission, storage, and demand-flexibility infrastructure rather than capacity addition alone. The paper concludes with policy implications and directions for future empirical research.

  1. Business Standard. (2026, July 22). India's solar capacity to exceed coal by 200 GW by 2036: Pralhad Joshi. https://www.business-standard.com/industry/news/india-s-solar-capacity-to-exceed-coal-by-200-gw-by-2036-pralhad-joshi-126072201399_1.html
  2. Hunt, K. M. R., & Bloomfield, H. C. (2024). Quantifying renewable energy potential and realized capacity in India: Opportunities and challenges. Meteorological Applications, 31(3), e2196. https://doi.org/10.1002/met.2196
  3. India Brand Equity Foundation. (2026). Power sector in India. https://www.ibef.org/industry/power-sector-india
  4. Krishnamurthy, R. (2025, May 22). India's renewable energy generation lags behind capacity due to weather, surging demand: Analysis. Down To Earth. https://www.downtoearth.org.in/renewable-energy/indias-renewable-energy-generation-lags-behind-capacity-due-to-weather-surging-demand-analysis
  5. Maguire, G. (2026, August 17). India's power system just passed a historic tipping point. Reuters. https://www.reuters.com/commentary/reuters-open-interest/indias-power-system-just-passed-historic-tipping-point-2026-08-17/
  6. Ministry of New and Renewable Energy. (2026, April 8). India ranks third globally in renewable energy installed capacity: Shri Pralhad Joshi [Press release]. Press Information Bureau. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2250039
  7. Press Information Bureau. (2025, June 22). India's energy landscape: Powering growth with sustainable energy. Government of India. https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154717.

DOI:

Article DOI:

DOI URL:


Download Full Paper:

Download