
If energy were a cricket match, India would be in the ultimate test series. On one side: team fossil fuels, the long-time champions. On the other: team renewables, with immense potential. The pitch? A billion-plus people with a growing need for power.
This isn’t just David vs. Goliath. With solar farms shining in Rajasthan and wind turbines spinning in Tamil Nadu, India is changing the game. Its renewable energy share has jumped from 17% to over 40% in a decade – an incredible power play. For investors, this is a rare chance, like the early days of IT, but with the power to reshape India’s sustainable future.
India's energy landscape is undergoing a remarkable transformation. As the world's third-largest energy consumer, the nation is pushing boundaries with 450 GW installed capacity and 44% renewable share. Yet with per capita consumption at 1,255 kWh – far below global averages – the potential for growth is immense. This transformation rests on three pillars: ambitious renewable energy expansion targeting 50 GW annually, industrial decarbonization through green hydrogen, and widespread transport electrification. Together, these initiatives represent a comprehensive reimagining of how 1.4 billion people will power their future.
Let's dive into how India is padding up for the biggest energy transformation in its history, and more importantly, where the smart money is placing its bets.

Energy Mix
India’s energy story is like flipping through the pages of a family album—every phase tells a tale of resilience, growth, and reinvention. From the coal-dominated days of early independence to the solar-powered ambitions of today, the country’s energy journey reflects its evolution as a nation.
But how do we measure the scale of this transformation? That’s where installed capacity comes in—a key metric in the world of energy. Think of it as the maximum energy-producing potential of the country, similar to the horsepower of a car that defines its performance. Installed capacity represents the combined generation capability of all power plants—coal, solar, wind, hydro, and others—if they ran at full capacity. It’s not about the energy we produce daily but the ceiling of what we can produce when all systems are go.
Let’s flip through India’s energy journey through the lens of installed capacity:

Past: Coal, the Undisputed Champion
After independence, India heavily relied on coal, with regions like Jharkhand and Chhattisgarh driving industrial growth. In the 1970s and 80s, hydroelectric projects like Bhakra Nangal Dam powered homes and irrigated farms across regions like Punjab and Himachal Pradesh. By the 1990s, Tamil Nadu led the way in wind energy, signaling a transition towards renewables. In 2010, India’s energy mix was heavily reliant on coal, like the trusty backbone of the nation’s electricity grid. The total installed capacity was 160 GW, with coal contributing a whopping 55%. Renewables, at the time, were the underdogs—solar barely scratched the surface at 0.5%, and wind had a modest share of 7%. Hydropower, though, stood tall at 18%, playing a vital role in balancing the load.
Present: The Turning Point
Fast forward to 2024, and it feels like India swapped its old, gas-guzzling sedan for a hybrid. Installed capacity has shot up to 450 GW, and coal still has the biggest slice of the pie at 47%, but its dominance is clearly slipping. Renewables, on the other hand, have come alive, accounting for 43.8% of capacity. Solar leads the charge, jumping to 30%, while wind hits a breezy 10%. Even hydropower stays steady at 8%, proving old doesn’t mean obsolete.
Coal additions have slowed dramatically. From 66 GW added between 2010 and 2015 to a mere 8 GW from 2020 to 2024, it’s clear the focus is shifting toward greener horizons.
Future: The Renewable Renaissance
Looking ahead to 2030, India’s energy landscape is poised to flip the script entirely. With total capacity expected to hit 777 GW, renewables will steal the show, taking over 50% of the mix. Solar and wind will likely be the superstars, while coal’s share continues to shrink. This pivot isn’t just about numbers—it’s about the impact. Cleaner air, lower emissions, and a nation less dependent on finite resources.

What’s the Gap in the Current Market?
Price parity in India’s energy sector presents both a milestone and a puzzle. Renewable energy costs are dropping, but the reality of achieving price parity is nuanced, shaped by factors beyond simple tariff comparisons.
Let’s Breakout the same!
Coal's Legacy Advantage:
Existing coal plants, with established infrastructure, generate power at ₹3.50-4 per unit, but these figures ignore the environmental costs of carbon emissions. If carbon pricing were implemented, coal power's cost could rise significantly, leveling the playing field for renewables.
Solar Power: A Partial Victory:
Here's a sobering fact: In 2010, India's solar capacity was just 65 MW. By 2023, we've reached 73,319 MW – a transformation that puts India among the world's top three solar markets. This dramatic scaling mirrors the global success story of solar energy, where the levelized cost of electricity (LCOE) plummeted from $400/MWh in the early 2010s to $49/MWh in 2022 – making it 29% cheaper than the most affordable fossil fuel alternative.
Let's talk economics, because that's where the real revolution is. Solar tariffs in India have dropped from ₹11/kWh in 2010 to ₹2.6/kWh in 2023. This isn't just a price drop – it's a fundamental shift in India's energy economics. In many regions, utility-scale solar is now undercutting new coal plants, with recent auctions hitting ₹2.4/kWh compared to coal's ₹3-5/kWh range.
The cost story gets more interesting when you dig deeper. About 90% of solar and wind generation costs are tied to capital expenditure. This means every policy lever has outsized impact. Key interventions like Renewable Power Obligations (RPOs), the Nationalized Energy Grid, capital subsidies, and land fee reductions have all contributed to this cost reduction. Even more promising is the potential for further cost reductions – strategic moves like GST reductions (currently at 12% for solar panels), direct subsidies, and land-use efficiency improvements could push solar costs down to an ambitious ₹2/kWh target.

This transformation becomes even more compelling when compared to traditional energy sources. While solar power costs have fallen by 88% globally and 76% in India since 2010, conventional energy prices continue to rise. The wholesale price indices tell a striking story: aviation turbine fuel and LPG saw increases of 67.7% and 11.12% respectively in 2022-23. Meanwhile, wind power costs have decreased by 60% globally.
But let's be clear about the challenges. Grid integration isn't just a technical problem; it's a test of our infrastructure planning. The Green Energy Corridor isn't progressing as smoothly as planned, and storage remains a critical bottleneck. These aren't just speed bumps – they're fundamental challenges that need urgent attention. The PLI scheme's ₹24,000 crore push isn't just another government initiative – it's India's declaration that we're ready to be a global solar tech hub.
Wind Energy: The Integration Cost Conundrum:
Wind energy faces its own challenges. Competitive tariffs of ₹3-3.50 per unit are undermined by intermittency issues. Distribution companies must maintain backup capacity, doubling costs and creating hidden "integration costs" that inflate wind energy prices by 15-20%.
Transmission and Storage: The Hidden Price Tags
Renewable projects are often located far from consumption hubs, necessitating expensive transmission networks. Additionally, battery storage—critical for reliability—remains costly, with utility-scale systems priced at $200-300 per kWh. These costs amplify renewable energy's levelized cost by up to 50%.
Narrowing the Gap
Encouragingly, advancements in battery technology and grid integration are reducing these gaps. Annual declines of 15-20% in battery costs, coupled with policy innovations, are steadily closing the parity divide. Achieving price parity across all dimensions isn’t just about cost—it’s about creating a system that integrates renewables seamlessly into India’s energy fabric.

What is the state of energy generation and consumption?
In 2014-15, India’s energy generation was heavily reliant on non-renewable sources, with coal dominating the landscape. A staggering 82% of the country’s total 1,105.38 billion units (BU) of electricity came from coal, leaving renewables to play a supporting role. At the time, renewable energy contributed just 17.28%, with wind power leading the pack at 33.77 BU, followed by bio-power (15.29 BU), small hydro (8.06 BU), and solar power barely making an appearance at 4.6 BU.
Fast forward to 2023-24, total energy production has surged to 1,734.12 BU, but what stands out is the steady rise of renewable energy. Renewables now contribute 20.75% of the total, with solar power emerging as a clear leader. Solar now generates an impressive 115.98 BU, overtaking wind energy, which has grown to 83.39 BU. Bio-power and small hydro have also seen modest growth, contributing 17 BU and 9.49 BU, respectively.

India’s installed power capacity saw remarkable growth, jumping from 200 GW in 2013 to nearly 500 GW by 2023, marking a dramatic expansion of the nation’s energy infrastructure.
Now, here's a number that should make every investor sit up: 1,255 kWh. That's what the average Indian consumes in electricity annually – barely one-third of the global average. Now, if you're thinking this is a problem, you're looking at it wrong. This isn't just a gap; it's possibly the biggest untapped opportunity in the energy sector.

Think about it. India's already the world's third-largest energy consumer, running on just a fraction of what other major economies use per person. For context:
1. China burns through 5,000 kWh per person
2. Brazil uses 2,500 kWh
3. The US? A whopping 12,000 kWh

But here's where it gets interesting. Over the last two decades, India's per capita consumption has doubled from 600 kWh to 1,255 kWh. What's even more telling is the efficiency story – while GDP grew at 7% annually, energy consumption only climbed 4.5%. That's not just growth; that's smart growth.
The regional disparities tell an even more compelling story. Take Gujarat, consuming over 2,000 kWh per capita, while Bihar sits below 400 kWh. These aren't just statistics; they're growth roadmaps. As states like Bihar catch up to Gujarat's levels, we're looking at massive scaling opportunities.But here's what really matters for investors: India's building its energy future from scratch in many ways. Unlike developed markets saddled with aging infrastructure, India can leapfrog directly to efficient, clean energy systems. It's like getting to design a city's transport system today versus trying to retrofit century-old subway lines.
Which Sector is Consuming the most electricity?
India is currently the third-largest economy in the world in terms of energy needs and it is projected to have the fastest-growing energy demand globally by 2035. India’s final energy demand is expected to double to 1800-1900 mtoe by 2070 with a steady year-on-year increase of 5-6 percent for the next one or two decades.

The industry sector is the largest consumer of energy in India, accounting for about 46% of the total energy consumption. This includes energy for manufacturing, mining, construction, and other industrial activities. The industry sector is likely to contribute 65-70 percent to the total energy demand by 2070.

India’s Emissions: A Story of Balance
India’s emissions narrative is a story of contrasts - On one hand, India is the world’s third-largest carbon emitter, releasing approximately 2.7 billion tonnes of CO2 annually. On the other, its per capita emissions tell a humbler story: each Indian emits just 1.9 tonnes of CO2 per year, far below the global average of 4.4 tonnes.
Global Comparisons: Where Does India Stand?
To understand India’s emissions better, let’s place them in a global context.
1. The Average American emits a staggering 14.7 tonnes of CO2 annually, nearly 8 times higher than an Indian.
2. A Chinese citizen releases around 7.4 tonnes, nearly 4 times as much as the average Indian.
Per capita energy emission
In terms of emissions per capita it has the lowest level among all the G20 countries. India has slightly more emissions than the European Union (EU) but only one third of the emissions per capita, while the United States has 7 times higher emissions per capita and China has 4 time more emissions per capita.

India's Carbon Evolution
India’s emissions have grown alongside its economy. Since 2010, per capita emissions have risen by 40%, reflecting increased industrial activity, urbanization, and higher energy consumption. However, this growth comes from a low baseline - India's per capita emissions of 2.07 tons in 2023 are still only about a quarter of China's current emissions of 10.50 tons, and significantly below China's 2010 level of 7.72 tons.

But, India’s late start in economic development compared to other large economies, has contributed to its modest share of historical global GHG emissions, around 3%. However, emissions have steadily risen since 2014, reflecting its growing economy. Over the next decade, India aims to become a $10 trillion economy, transitioning from lower to higher middle income. Rising incomes will boost electricity demand for amenities like air conditioners and refrigerators.
India is also well-positioned to benefit from the "China-plus-one" strategy, attracting firms with its large workforce, digital focus, and technical expertise. These developments are expected to increase per capita energy consumption and emissions.
Sectoral Breakdown: Where Emissions Come From?
1. Power Sector (46%): A significant contributor, driven by coal-fired power plants that dominate the energy mix.
2. Industry (30%): Includes emissions from steel, cement, and chemical production.
3. Transport (13%): Predominantly from fossil-fuel-based vehicles.
4. Agriculture (Significant Contribution): Methane emissions from rice cultivation and livestock, often overlooked in broader climate discussions, play a notable role.


Our Targets: 2030 and 2070


Three Pillars That Will Enable Energy Transition?

Look, 2070 feels like science fiction. But India's path to net-zero emissions? That's happening right now, in three massive waves that collectively form the foundation of India's energy transition journey and can address ~80-85 percent of India’s current emissions.
But India’s energy transition will be expensive. Between 2022 and 2070, the country would require ~ US$15 trillion to achieve net zero, equating to an average annual spend of ~ US$300 billion, warranting significantly higher outlay in the initial years.
Modernizing the Grid:
40% of India's emissions come from keeping the lights on, with coal plants powering most homes and factories as they have for decades. The solution? Adding 50 GW of renewable energy every year. To put it into perspective, that's like building a power plant equal to Delhi's electricity consumption annually. But generation alone isn't enough—the grid needs to evolve. AI-driven distribution, advanced storage systems, and a future-ready network are essential to managing this clean energy transformation.
Redefining Industry:
Steel, cement, and aluminum—the backbone of modern India—account for 70% of industrial emissions. Tackling this isn’t just an engineering challenge; it’s about reimagining how we produce and build. The plan is clear:
- Green hydrogen replacing coal in steel production
- Cement plants capturing carbon instead of emitting it
- Aluminum smelters powered by renewable energy
Evolving Transportation:
Electric vehicles are no longer a concept—they’re here. While EVs currently make up 2% of vehicles, the goal is 30% by 2030. This goes beyond replacing engines; it’s about redefining how 1.4 billion people move. The shift is evident, from electric delivery bikes to city buses. Charging infrastructure is expanding, though much faster progress is needed.
By 2070, these changes will define India’s energy future. The real question isn’t whether we’ll get there—it’s how quickly we can make it happen.
Now, let’s break each on of the them and see how we can solve for it?

Grid Decarbonisation
India’s energy future depends on one crucial shift: decarbonizing the grid. With electricity’s share in the final energy mix expected to rise from 18% in 2020 to over 50% by 2070, this transition is essential. To achieve net-zero by 2070, India must scale up renewable energy (RE) significantly—2,000 GW of grid-scale RE (wind and solar) and 1,000 GW for green hydrogen, requiring an annual addition of ~50 GW—far above the current 15–20 GW/year.
The challenge is clear: electricity generation contributes 40% of India’s emissions, with coal powering 70% of output and dominating installed capacity. Moving from coal to renewables requires not just capacity expansion but a complete reimagining of the grid.
A modern grid demands AI-driven distribution, large-scale energy storage, and future-ready infrastructure. Alongside, streamlined policies, faster approvals, and bold investments are key to driving this transition.

What we need to Solve?
1. Archaic Infrastructure: India's grid infrastructure, primarily developed in the 20th century, was designed for centralized, dispatchable power sources like coal. This design struggles to accommodate the variability and intermittency of renewable energy (RE) sources such as wind and solar. A study by the National Renewable Energy Laboratory highlighted that integrating 175 GW of RE into India's grid would require substantial operational changes to manage variability and ensure reliability.
2. Demand-Supply Mismatch: Maintaining grid stability necessitates a constant balance between electricity supply and demand. Deviations can lead to blackouts or necessitate reliance on expensive peaking power plants, often fossil-fuel-based, increasing costs for consumers. The World Bank reported that Indian businesses lose approximately 3.6% of annual sales due to power outages, aligning with the average for middle-income economies. Additionally, India's electricity generation growth slowed to 5.8% in 2024, the slowest since the COVID-19 pandemic, reflecting economic challenges and impacting grid stability.
3. Historical Underinvestment in Transmission and Distribution: India's T&D infrastructure has suffered from underinvestment, leading to significant energy losses. Over the past five years, T&D losses averaged around 21%, more than double the global average of 8–10%. In contrast, countries like the United States, China, and Germany maintain losses around 5%. The Economic Survey 2020-21 flagged these high T&D losses as a critical issue in India's power sector. Furthermore, the integration of RE systems in remote areas necessitates new transmission lines. For instance, Rajasthan, with some of the highest solar radiation in India, lacks sufficient transmission connectivity for new projects until 2028, hindering RE capacity expansion.
Key Enablers:
1. Smart Grids: A smart grid connects every component of the electricity grid across various stages, using communication, automation, and IOT systems—from power generation, transmission, storage, and distribution to electricity consumption. As of June 2023, approximately 6.53 million smart meters have been installed across India, with an additional 22.98 million sanctioned under various schemes. Today, two-way communication between devices and traffic of terabytes of data over wired/wireless networks is a reality. The integration of communication, computational and advances in power devices can be harnessed to develop Smart Grid; a grid which is smart enough to communicate with its users, managers and can take self-healing measures in case of contingencies to enable utilization of facilities to the extent possible.
2. Decentralized Renewable Energy: Encouraging the adoption of distributed renewable energy systems, such as rooftop solar panels and small wind turbines, empowers households and businesses to generate their own electricity. This self-generation reduces reliance on the central power grid, thereby decreasing transmission losses and extending the lifespan of existing infrastructure. India's rooftop solar (RTS) potential is substantial. A study by the Council on Energy, Environment and Water (CEEW) estimates that Indian households have a combined RTS potential of approximately 637 GW. However, as of March 2024, the installed RTS capacity stood at 11.87 GW, indicating significant untapped potential. To meet its ambitious renewable energy targets—500 GW of total capacity, including 280 GW of solar, by 2030—India aims for RTS to contribute about 100 GW. This goal necessitates a substantial increase in annual installations, supported by favorable policies, financial incentives, and heightened consumer awareness. State-level initiatives have shown promising results. Gujarat, for instance, has implemented the SURYA scheme, resulting in the installation of 1.1 GW of residential RTS in 18 months. Other states like Maharashtra and Rajasthan also exhibit high potential, with installed capacities of 2,072 MW and 1,154 MW, respectively.
3. Energy Storage Systems (ESS): Integrating a substantial share of renewable energy (RE) into India's national grid necessitates significant advancements in energy storage systems (ESS) to maintain grid stability. In the near term, large-scale ESS solutions are expected to favor Pumped Hydro Storage (PHS) due to its low levelized cost of energy (LCOE), particularly for long-duration storage. However, with the anticipated decline in battery prices, Battery Energy Storage Systems (BESS) are poised to become more financially viable for grid-scale applications. Notably, utility-scale lithium-ion battery prices have plummeted by approximately 90% over the past decade, marking one of the fastest cost declines among energy technologies. As of 2024, the global average price for lithium-ion battery packs has reached a record low of $115 per kilowatt-hour (kWh), a 20% decrease from 2023. This significant reduction in costs enhances the feasibility of deploying BESS for long-duration energy storage solutions. Projections indicate that by 2030, top-tier battery densities could range between 600 and 800 Wh/kg, with costs potentially falling to $32–$54 per kWh. Looking ahead, advanced energy storage technologies are expected to be deployed, including sodium-ion and solid-state batteries for improved efficiency and lower costs; flow batteries like vanadium or iron-chromium redox for large-scale, long-duration storage and thermal energy storage systems that capture excess renewable energy as heat


Industrial Decarbonisation:
While decarbonizing the grid can address 40-45% of emissions from India’s electricity sector, industrial decarbonization holds the key to reducing another 30% of energy-related emissions. Within this, steel, cement, aluminum, and fertilizer emerge as the heavyweight contributors, together responsible for nearly 70% of total industrial emissions. With steel and cement alone accounting for 12% and 8% of total emissions respectively, these industries represent the next frontier in India’s fight against climate change.
Let’s Deep drive and discover how each sector will solve the problem!

Key Enablers:
1. Green Hydrogen:
India currently produces 6.5 million metric tonnes per annum (MMTPA) of hydrogen, predominantly for crude oil refineries and fertilizer production. However, the majority of this is grey hydrogen, generated using fossil fuels and emitting significant CO₂. Green hydrogen, produced through renewable-powered electrolysis, offers a promising pathway to decarbonization with applications across industries, transport, and power. Despite its potential, on-ground adoption remains limited, with large-scale production anticipated to begin after 2027. The primary barrier? Costs. At $4–5/kg, green hydrogen production costs are nearly double that of grey hydrogen, driven largely by renewable electricity costs (50–70%) and electrolyser costs (30–50%). Achieving a benchmark production cost of $2/kg—requiring renewable energy at INR 2 (~$0.02)/kWh—is essential for a green hydrogen ecosystem to thrive. However, India’s lowest landed RTC renewable energy price currently stands at INR 4–4.5 (~$0.05–0.06)/kWh.
Electrolyser Costs and the Path to Scale: Electrolyser costs, ranging from $800–1,200 per kW, are a significant contributor to green hydrogen’s high price. Historically, similar climate technologies have seen steep cost declines with scaling—lithium-ion batteries dropped 44%, photovoltaic modules by 34%, and wind energy LCOE by 23% as production doubled. A similar trajectory is expected for electrolysers as global demand for green hydrogen rises. However, India’s current plans for 8 GW of production capacity fall far short of the 35–40 GW needed to achieve the 5 MMTPA green hydrogen target by 2030. Scaling production and driving innovation in electrolysis technologies will be critical to bridging this gap
The Levelized Cost of Hydrogen (LCOH) is influenced by reductions in electrolyser capital costs, renewable energy tariffs, and improvements in electrolyser efficiency. With waived interstate transmission charges, the LCOH currently is at USD 3.74 per kg in 2023. To achieve the target of USD 2.1 per kg, further reductions in electrolyser costs and efficiency enhancements are essential.

The transition to green hydrogen demands innovation in electrolyser technology. Alkaline electrolysers (ALK) are cost-effective but less efficient with intermittent renewable power, while proton exchange membrane (PEM) electrolysers offer greater flexibility but rely on rare-earth metals like platinum and iridium, which India must import. Emerging technologies such as anion exchange membranes (AEM) and solid oxide electrolysers (SOEC) hold the potential to overcome these challenges by reducing costs, enhancing efficiency, and minimizing reliance on rare-earth imports. Stakeholders must prioritize R&D for scalable, flexible, and sustainable electrolyser solutions to ensure India’s green hydrogen ambitions materialize.
2. Carbon Capture, Storage and Utilization
CCUS has a critical role to play in decarbonising industrial sectors that are hard to electrify, due to their high energy and process-related emissions. In a net-zero scenario, India may require 400–500 million tons of annual CCUS capacity by 2070. A majority of this is likely to be deployed to capture process emission from the cement industry. India’s plan to become a USD 5 trillion economy by the end of this decade largely depends on industrial growth. Consequently, we can expect a corresponding increase in greenhouse gas emissions from all hard-to-abate industries, which currently emit around 700 million tonnes of CO₂ each year. CEEW analysis indicates that 40% of the more than 500 million tonnes of CO₂ currently emitted annually by India’s steel and cement industries can be mitigated through energy efficiency measures, use of renewable power and alternative low- or zero-carbon fuels and raw materials.

The rest, 310 million tonnes of CO₂ emissions, can only be mitigated through CCUS. Recent analyses by the New Delhi-based think tank Council on Energy, Environment and Water (CEEW) found that up to 56% of emissions generated by India’s steel industry and 67% of emissions from the cement industry could be abated by CCUS, if the technologies are successfully scaled. Beyond steel and cement, this technology could be applied at other industrial facilities that have a significant volume and concentration of CO₂ emissions even after adopting renewable energy, such as refineries, fertilizer plants and chemical plants. In fact, about 60 percent of India’s current coal-based fleet is less than 15 years old. Therefore, to avoid any stranded assets and meet the baseload demand, India is expected to continue with a coal-based power plant (share in power generation mix will reduce) for the next few decades. As the largest emitter of CO2, CCUS in the power sector may be explored to achieve meaningful decarbonization and ensuring energy security in India.
CCUS is not yet a commercially mature technology in the present day, with only pilot and small-scale projects implemented so far. In the absence of any carbon pricing, the current cost structure is prohibitive and varies significantly across applications and industries and CO2 source, from a range of USD 15-25/t CO2 for industrial processes producing “pure” or highly concentrated CO2 streams (such as ethanol production or natural gas processing) to USD 40-120/t CO2 for processes with “dilute” gas streams, such as cement production and power generation. In addition, ideal sites for CO2 storage are not yet established. Initial theoretical assessments have determined that India has a large potential (400–600 Gt) for storage in saline aquifers and basalt. These technologies are still in the development stage and must reach commercialisation before large-scale deployment

Transport Decarbonisation
Transportation accounts for approximately 14% of India’s greenhouse gas emissions, making it a critical sector in the nation’s pursuit of net-zero emissions by 2070. With 300 million vehicles already on the road and an additional 200 million expected in the next two decades, the country faces an uphill task of electrifying its roads and reducing its dependence on oil, which currently fuels ~98% of transportation energy demand.
This transformation goes beyond merely producing electric vehicles (EVs). It requires a robust ecosystem of charging infrastructure, advanced battery technology, and alternative fuels to ensure a sustainable and equitable transition.
Challenges:
1. Higher Upfront Costs: EVs, particularly four-wheelers, are 30-40% more expensive than ICE vehicles despite subsidies like FAME II. For example, an EV costing INR 9-12 lakh is still significantly pricier than its ICE counterpart at INR 6-8 lakh
2. Supply Chain Constraints: India imports 70% of its EV components, especially batteries, from countries like China. Supply chain disruptions, such as the 2021 chip shortage, caused production delays of 3-6 months and also raised costs by 5-10%

Key Enablers:
1. Battery swapping is revolutionizing mobility for two- and three-wheelers, particularly in delivery services and ride-sharing. It eliminates charging downtime by enabling quick battery replacements, reducing operational costs by 10–15% per km for high-utilization users. This approach addresses range anxiety and makes EVs a viable option for last-mile delivery and commercial applications, driving rapid adoption in urban centers.
2. Rare-Earth-Free EV Powertrains: India’s EV powertrain components, accounting for 51% of an EV’s cost, are largely imported, with 60% of parts coming from global markets. Innovations in synchronous reluctance motors and ferrite-based motors are reducing dependency on rare-earth materials while simplifying manufacturing. These technologies are critical to strengthening local supply chains and decreasing costs, making India’s EV industry more resilient and globally competitive.
3. Expanding Charging Infrastructure: India’s charger-to-EV ratio stands at 1:33, far behind mature markets like China’s 1:7.2 ratio. The lack of charging infrastructure is a significant barrier to EV adoption, especially in non-urban areas. Efforts to expand charging networks, including highway and rural chargers, aim to improve accessibility, reduce range anxiety, and encourage EV purchases. Scaling this infrastructure is essential for supporting the anticipated surge in EV adoption.
4. Advanced Battery Technologies: Battery technology advancements are key to reducing EV costs. Emerging alternatives like sodium-ion batteries, which are 20% cheaper than lithium-ion, are being developed to better suit India’s climate. With domestic manufacturing capacity for advanced batteries expected to reach 50 GWh by 2025, battery costs are projected to decline by 15–20% by 2030, narrowing the cost gap between EVs and conventional vehicles.
5. Alternative Fuels: Complementing EVs for Decarbonization: While EVs are central to transportation decarbonization, alternative fuels like biofuels and hydrogen play a crucial role for sectors less suited to electrification. India targets 20% ethanol blending by 2025, potentially reducing fuel emissions by 10% and saving billions in oil imports. For heavy commercial vehicles, hydrogen-powered fuel cells offer long-term solutions, promising to decarbonize freight and public transportation while enhancing energy security.
The Way We See It?
The numbers speak volumes, but they tell only part of the story. Consider this: while the world fixates on India's 500GW renewable energy target, what's often overlooked is that just converting India's agricultural pumps to solar could unlock 150GW of power – enough to light up 28 million homes. Or that India's railway network, the world's fourth largest electricity consumer, could offset 15 million tonnes of CO2 annually just by switching to renewable energy, a transition that's already quietly underway.
We at Gruhas aren't just observers in this journey. We're rolling up our sleeves, backing visionaries who dare to think differently, and putting our conviction where it matters most. And the signs are promising – while headlines focus on utility-scale projects, India's residential rooftop solar installations grew by an unprecedented 142% in 2023, with tier-2 cities accounting for 60% of new installations. That's the kind of ground-up revolution that transforms nations.
The future of energy in India isn't just bright – it's brilliantly inevitable. Did you know that energy storage capacity is set to grow 24-fold by 2030, creating a $160 billion market for advanced battery technologies? While the path ahead may be long, the first steps we take today will echo through generations. After all, as the saying goes, the best time to plant a tree was twenty years ago. The second best time? Right now.
The same goes for transforming India's energy landscape. The time is now. The place is here. And we're all in....