India is the third-largest emitter of greenhouse gases in the world, and its coal-dominated electricity sector contributes approximately half of these. In addition, air pollution from burning coal is a serious challenge for public health. India also has approximately 200 million people without access to electricity and therefore has low per capita electricity consumption. These are unflattering realities when India is also expected to be among the fastest-growing economies in the world for the next few decades.

At the Paris summit in 2015, India committed to increasing the share of non-fossil electric generation capacity to 40% by 2030. The recent decline in the cost of solar photovoltaic systems and wind generation, and strong policy support for renewables-based distributed generation and micro-grids, make this target achievable. While the role of nuclear power in meeting this goal is uncertain, India’s re-entry in global nuclear trade and commerce following the 2008 civilian nuclear agreement with the United States and negotiation of a partial safeguards agreement with the International Atomic Energy Agency (IAEA) have revived interest in a major expansion programme. Reducing coal’s share in the Indian electricity sector, expanding electrification of transport, and improving efficiency can reduce India’s urban air pollution problems. At the same time, improving access and quality of service are key components of the United Nations’ Sustainable Development Goals (SDG). In this chapter, we analyse the challenges and benefits of increasing the share of renewables and nuclear power in India’s electricity system.