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					</table>Solar continued to dominate India&#8217;s renewable energy landscape. Installed solar capacity reached 163.7 GW, accounting for 29.7% of the country&#8217;s total power capacity and 56.4% of its renewable energy capacity.
The addition of new projects during the quarter increased installed solar capacity by 7.7% quarter-over-quarter and 40.7% year-over-year, underscoring solar&#8217;s continued leadership in India&#8217;s capacity expansion and its growing contribution to the country&#8217;s evolving power mix.
India’s renewable energy capacity, including large hydroelectric projects, reached 290.2 GW by the end of the second quarter (Q2), 2026. This accounted for 52.7% of the country&#8217;s total installed power capacity of 550.4 GW, based on data from the Central Electricity Authority (<a href="https://cea.nic.in/?lang=en" target="_blank" rel="noopener">CEA</a>), the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/en/" target="_blank" rel="noopener">MNRE</a>), and Mercom&#8217;s India <a href="https://www.mercomindia.com/product/india-solar-project-tracker" target="_blank" rel="noopener">Solar Project Tracker</a>.
Renewables have now exceeded conventional sources in India&#8217;s installed power mix for three consecutive quarters, reflecting the country&#8217;s accelerating energy transition.
At the end of Q1 2026, the share of renewable energy in the overall power mix was 51.7%, with an <a href="https://www.mercomindia.com/solar-share-in-indias-renewable-energy-capacity-rises-to-55-in-q1-2026" target="_blank" rel="noopener">installed</a> capacity of 276.5 GW.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/powermix.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-102034 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/powermix.png" alt="" width="987" height="673" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/powermix.png 987w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/powermix-300x205.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/powermix-768x524.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/powermix-650x443.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/powermix-624x425.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/powermix-600x409.png 600w" sizes="auto, (max-width: 987px) 100vw, 987px" /></a>
Wind remained the second-largest renewable source after solar, with 57.4 GW of installed capacity, equivalent to 10.4% of the total power mix and nearly 20% of renewable capacity.
Large hydropower capacity stood at 52.1 GW, accounting for 9.5% of the total installed capacity.
Large hydropower capacity increased by 400 MW in Q2, while pumped storage capacity rose by 250 MW following the commissioning of new generating units. These additions enhance peak-demand management and improve grid flexibility supporting the integration of a growing share of intermittent renewable energy into the power system.
Other renewable sources included 10.9 GW of bioenergy, 5.2 GW of small hydro, and 878.4 MW of waste-to-energy capacity.
Energy from Conventional Sources
At the end of Q2 2026, India’s installed conventional power capacity stood at 260.3 GW, accounting for 47.3% of total installed capacity. Although conventional capacity increased marginally during the quarter, its share of the overall power mix declined from 48.3% in Q1, reflecting the faster pace of renewable capacity additions.
Coal remained the largest conventional source, accounting for 40.7% of the total installed capacity, followed by gas at 3.7%, nuclear at 1.6%, lignite at 1.2%, and diesel at 0.1%.
Uttar Pradesh, Telangana, and Jharkhand added 2.26 GW of coal-based capacity during the quarter, reinforcing baseload generation amid rising electricity demand.
A total of 6.32 GW of coal, gas, and nuclear-based capacity was temporarily excluded from the installed base due to prolonged outages.
India’s renewable energy generation, excluding large hydropower, is <a href="https://www.mercomindia.com/indias-renewable-energy-generation-projected-to-grow-4-6-in-fy-2027" target="_blank" rel="noopener">expected</a> to rise 4.6% from 310.59 billion units (BU) in the financial year (FY) 2026 to 325 BU in FY 2027, according to the CEA Load Generation Balance Report, reflecting continued growth in renewable electricity generation alongside expanding installed capacity.
As renewable energy accounts for a growing share of installed capacity, maintaining grid reliability will increasingly depend on investments in energy storage, flexible generation, demand-side management, and transmission infrastructure. These resources will play a critical role in balancing variable renewable generation and enabling higher renewable energy penetration.
On the policy front, the Central Electricity Regulatory Commission  has introduced a one-time mechanism to address renewable energy projects that <a href="https://www.mercomindia.com/cerc-unlocks-idle-transmission-capacity-for-15-7-gw-renewables" target="_blank" rel="noopener">secured</a> interstate transmission system connectivity, but had not executed power purchase agreement even 12 months after the issuance of the letters of award. The measure is expected to improve connectivity utilization, reduce project uncertainty, and facilitate the conversion of awarded projects into commissioned capacity.

The government of Egypt is in the process of finalizing regulations about the production and sale of electricity from new private renewable power projects directly to consumers by September 2019.
Egypt’s ministry of electricity has set up a committee to prepare the standards, regulations, and rules governing the production of electricity from solar and wind stations and selling them to consumers through independent power producer (IPP) with payment of electricity network usage fees. Through this, the consumers will have free access to electricity from any licensed company producing and selling energy.
The committee would consist of officials from the Egyptian Electricity Transmission Company, the Egyptian Electricity Holding Company, the Electricity Regulatory Authority (<a href="http://www.egyptera.org/" target="_blank" rel="noopener noreferrer">ERA)</a>, the New and Renewable Energy Authority, experts in the field of electricity and energy, representatives from the private sector like KarmSolar, according to a press release on the development.
A significant point in the new rules is that no company would be allowed to monopolize the production or sale of electricity and direct tariff negotiation with consumers. The rules additionally include obtaining licenses to engage in the production and sale of electricity by the ERA, with the licenses being limited in duration and obtained by the private sector annually. According to the country’s Electricity Law, each participant has the freedom to choose their electricity supplier, the release added.
The new laws are set to open the market to the private sector, encouraging healthy competition.
Besides conventional power, Mercom recently wrote that Egypt is expected to achieve 20% renewable capacity in its energy mix by 2022, with the <a href="https://mercomindia.com/lightsource-bp-forms-jv-solar-projects-egypt/" target="_blank" rel="noopener noreferrer">world’s largest solar park</a> of 1.6 GW set to become operational in Benban by 2019.
According to the Global Wind Report 2018, Egypt installed <a href="https://mercomindia.com/51-gw-wind-projects-installed-globally-2018/" target="_blank" rel="noopener noreferrer">380 MW</a> of wind capacity in the past year.
<a href="https://mercomindia.com/lowest-tariff-2-79-cents-egypts-200-mw-solar/" target="_blank" rel="noopener noreferrer">Mercom</a> recently reported about the Egyptian Electricity Transmission Company announcing the financial bids for the construction of a 200 MW solar power plant at Kom Ombo.

Egypt Set to Open its Renewable Energy Market to Private Producers

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