India's Energy Future: Powered by Exponential Growth

India is undergoing an energy transformation unlike any in its history. With the world’s largest population and one of the fastest-growing economies, the country’s energy needs are massive and only getting bigger. But what’s remarkable isn’t just the scale of demand. It’s how India is choosing to meet it.

Across the country, the cost of clean energy technologies like solar and batteries has plummeted, setting the stage for a future defined not by scarcity, but by abundance. For India, this isn’t just a sustainability story. It’s a growth story. And it’s one that startups, policymakers, and investors are building together.

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The Clean Energy Cost Collapse

Let’s start with the numbers. In 1975, the cost of solar power was around $130 per watt. Today, it’s just $0.31. Lithium-ion batteries have followed a similar trend, falling from $7,500 per kilowatt-hour in 1991 to under $50 today. That kind of exponential drop in cost has completely changed the economics of energy. What was once expensive and niche is now affordable and scalable. (Source)

This trend is especially important for India, where electricity costs are still relatively high compared to global averages. Making energy cheaper and more accessible through renewables isn’t just good for the environment. It’s also great for the economy.

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Beyond Supplement: Renewables Take the Lead

Coal still accounts for about 70 percent of India’s electricity generation. But that figure masks a deeper shift. Renewables are increasingly the first choice for new capacity. India is using its natural strengths, like 300 sunny days a year, to move toward a solar-powered future.

What’s even more impressive is when this is happening. Unlike countries that moved to clean energy after reaching wealth, India is making the switch as it develops. This puts India in a rare position to lead the way on sustainable growth.

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A Landmark Moment: 200+ GW and Counting

India recently hit a major milestone with over 200 gigawatts of installed renewable energy capacity. That’s nearly half of the country’s total power generation capacity.

Here’s how it breaks down:

• Solar: 90.76 GW
  
• Wind: 47.36 GW
  
• Large Hydro: 46.92 GW
  
• Small Hydro: 5.07 GW
  
• Bioenergy: 11.32 GW
  
  

This balanced mix shows that India isn’t putting all its eggs in one basket. It’s building a clean, diverse, and reliable energy ecosystem. (Source 1, Source 2)

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Policy Tailwinds and Ambitious Targets

India’s momentum is backed by strong government support. The country has set a target of reaching 500 GW of non-fossil fuel capacity by 2030 and achieving Net Zero by 2070. These goals are supported by a range of forward-looking policies and initiatives:

• National Green Hydrogen Mission
  
• PM-KUSUM (solar for agriculture)
  
• PM Surya Ghar (rooftop solar)
  
• Production Linked Incentive (PLI) schemes for domestic solar manufacturing
  
  

The government is also creating the right environment to attract foreign investment and encourage renewable energy projects across the country. These combined efforts are helping to accelerate India’s clean energy transition at scale. (Source)

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Startups: The Last-Mile Enablers

While large companies and governments are making the big infrastructure investments, it’s startups that are solving critical last-mile problems. Whether it’s integrating renewable energy into the grid, building smarter storage systems, or developing localised applications, startups are playing a key role in making the transition work on the ground.

Take energy storage, for example. Globally, growth is increasingly happening behind the meter, in homes, factories, and commercial buildings. These kinds of decentralised solutions need agile, tech-first approaches that startups are best equipped to provide.

There’s also a huge opportunity in rethinking incentives and financing models. How do you make solar adoption easy for a kirana store? How do you build a cost-effective charging infrastructure for electric vehicles? These are questions that require creativity, and startups are leading the charge.

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^Source

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3one4 Capital: Investing in the Transition

At 3one4 Capital, we’re proud to support founders who are enabling India’s energy transformation. Our portfolio reflects the variety of solutions needed to build a cleaner and more energy-abundant future:

• Exponent Energy: Fast-charging tech designed for the Indian EV ecosystem
  
• Vidyut: Flexible financing solutions for electric vehicle ownership
  
• Yulu: Shared electric mobility for last-mile urban transport
  
• Agnit Semiconductors: High-efficiency power electronics made in India
  
  

These companies are tackling everything from the hardware and infrastructure to financial and operational models. Together, they represent a powerful force for change.

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The Road Ahead: Abundance Over Scarcity

India’s clean energy future won’t be built overnight. But the direction is clear. With falling technology costs, strong policy support, and a vibrant ecosystem of entrepreneurs and innovators, the country is moving toward a future of energy abundance.

India is showing the world that sustainable growth is possible and that climate responsibility and economic development can go hand in hand. The opportunities ahead are massive. And those who are bold enough to act now will help shape the future of energy, not just for India, but for the world.