From a global perspective, US President Donald Trump’s 2017 decision to exit the climate accord dealt a major blow to international climate efforts. His pro-fossil fuel stance and rollback of regulations prioritised short-term gains for the US over long-term global sustainability.

In 2025, on his first day back in office, Trump signed a letter withdrawing the US from the Paris Agreement, making America one of just four countries outside the accord. Unlike his first attempt, this exit is faster, with the US able to leave within a year of submitting the withdrawal letter.

While Trump argues the accord doesn’t reflect US values, polls show much of the American public, including Republicans, opposes the move. The US remains the second-largest emitter of greenhouse gases, and its exit undermines global climate goals, potentially giving China and India an edge in clean energy manufacturing.

In contrast, India is actively pursuing, distributed renewable energy (DRE) as a transformative approach. The Ministry of Power mandates that by 2030, 5 per cent of India’s electricity (63 GW) must come from DRE, under the latest renewable energy purchase obligations.

The reason for the divergence is simple. India imports much of its fuel energy needs at huge costs. According to recent estimates by ICRA, India's fuel import cost in financial year 2025 is projected to reach between US$ 101-104 billion, compared to US$ 96.1 billion in 2024. 

Additionally, the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme is boosting agriculture by providing financial support for 1 million solar pumps and solar power for agricultural feeders. By harnessing local renewable resources — be it solar, wind or biomass — DRE can meet India’s power needs sustainably, while empowering rural communities, enhancing energy security and combating climate change. The time to embrace DRE is now.

Empowering Rural India: A Leap Forward In Energy Access

Over 311 million people in India still lack access to reliable electricity, primarily in rural areas. In a country where large-scale infrastructure development takes time and capital, DRE presents a game-changing opportunity to leapfrog the need for centralised power grids.

Distributed solar systems, mini-grids and biomass-based solutions are already providing reliable and affordable energy to remote villages, even as peak power demand has been steadily soaring in India. Figure 1 below gives you some perspective.

India's peak power demand is set to hit 270 GW in 2025-26 and soar to 446 GW by 2030, driven by economic activity and increasingly, extreme climatic conditions. In 2021, 179 million people gained energy access through DRE solutions — up from just 35 million in 2012.

DRE's decentralised approach taps into local renewable resources, meeting diverse energy needs across residential, institutional and productive sectors. With peak demand needs not being met, it is imperative to foster an ecosystem for scaling up DRE integration.

A good case of energy access is the work of Tata Power Solar in rural Rajasthan, where solar-powered mini-grids are lighting up communities, improving education and healthcare, and powering small businesses. For India, DRE offers an affordable, scalable solution to energise 65 per cent of the population still living in rural areas.

India’s Renewable Potential: Solar, Wind & Biomass

India’s renewable energy resources are vast and varied, making it a prime candidate for DRE solutions. On average, the country receives over 300 sunny days a year, making solar energy the most obvious choice for distributed generation. According to the Ministry of New and Renewable Energy (MNRE), India’s solar potential is estimated at 748 GW, far exceeding current energy demand. Figure 2 below gives you India’s per capita consumption trends across recent years.

India ranks 5th globally in solar PV deployment as of 2022, with an installed capacity of 70.10 GW by mid-2023. Further, India's total electricity generation capacity has reached 452.69 GW, with renewable energy making up over 46 per cent of this, as of October 2024.

Solar power leads the charge with 92.12 GW, followed by wind (47.72 GW), hydro (52.00 GW), and biopower (11.32 GW). This shift to cleaner energy sources is accelerating India’s journey towards sustainability, with the nation’s renewable capacity now surpassing 200 GW.

Rajasthan, Gujarat, Tamil Nadu and Karnataka are leading India's renewable energy push, driving the country toward its goal of 500 GW of non-fossil fuel power by 2030. With initiatives like the National Green Hydrogen Mission and PM-KUSUM, India is set to lead the global green energy transition.

Coastal regions are primed for small-scale wind plants, while the agricultural heartland holds vast biomass potential. By tapping into decentralised solar, wind and biomass solutions, India can power its future without relying on costly, centralised grids. The country has identified 70 GW of offshore wind potential across Tamil Nadu and Gujarat, with plans to auction 37 GW by 2030.

With a clear path forward, India's renewable energy revolution is not only securing a sustainable future but also positioning the country as a global leader in the green energy transition.

This is Part 1 of a two-part series. Part 2 will focus on why India should cut its fossil fuel reliance.

(The writer is a public policy and urban transportation enthusiast and specialist. Views are personal)