What Happened
- Indian Railways plans to invite bids for 3 GW of renewable energy projects worth Rs 18,000 crore in FY27 (2026-27).
- The initiative is part of Indian Railways' goal to become a net zero carbon emitter by 2030.
- Renewable energy adoption will also significantly reduce the organisation's annual fuel costs.
- Indian Railways is one of the world's largest energy consumers, with electricity forming the bulk of traction energy as electrification nears completion.
- The 3 GW target is part of a larger requirement of approximately 30 GW of renewable capacity needed by 2029-30 to achieve the net zero goal.
Static Topic Bridges
Indian Railways' Net Zero by 2030 Target
Indian Railways committed to achieving net zero carbon emissions by 2030, making it potentially the world's first railway network to do so. The strategy rests on three pillars: complete electrification of routes (eliminating diesel traction), sourcing electricity from renewable sources, and improving energy efficiency. As of 2025, over 95% of India's broad-gauge network has been electrified. However, electrification alone does not achieve carbon neutrality -- if the electricity comes from coal-fired thermal plants, emissions are merely shifted upstream. Hence, dedicated renewable energy procurement is essential.
- Indian Railways is the world's 4th largest railway network (approximately 68,000 route km)
- Annual energy consumption: approximately 21 billion kWh of electricity and approximately 2 billion litres of diesel (pre-electrification)
- Electrification progress: over 95% of broad-gauge network electrified (approximately 65,000 route km) by 2025
- Renewable capacity commissioned (as of December 2025): 812 MW solar + 93 MW wind = approximately 905 MW
- Total renewable capacity needed by 2029-30: approximately 30 GW
- CO2 emissions reduction target: from approximately 6 million tonnes annually to net zero
Connection to this news: The 3 GW tender in FY27 is a significant scaling-up from the current installed base of approximately 905 MW. Achieving 30 GW by 2029-30 requires aggressive annual additions of 6-8 GW, of which this 3 GW tender represents one tranche.
Renewable Energy in India -- Targets and Progress
India has set ambitious renewable energy targets under its Nationally Determined Contributions (NDC) to the Paris Agreement and domestic policy. The updated NDC (August 2022) targets 50% cumulative installed power capacity from non-fossil fuel sources by 2030 and a 45% reduction in emissions intensity of GDP from 2005 levels by 2030. India's long-term target is net zero emissions by 2070 (announced at COP26, Glasgow, November 2021).
- India's installed renewable capacity: approximately 203 GW (as of January 2026), including large hydro
- Solar: approximately 90 GW; Wind: approximately 48 GW; Small Hydro: approximately 5 GW; Biomass: approximately 11 GW
- Target: 500 GW non-fossil fuel capacity by 2030 (PM's announcement at COP26)
- National Solar Mission (JNNSM): Launched January 2010 under National Action Plan on Climate Change (NAPCC)
- Key institutions: MNRE (Ministry of New and Renewable Energy), SECI (Solar Energy Corporation of India), IREDA (Indian Renewable Energy Development Agency)
- Green energy corridor: transmission infrastructure for evacuating renewable power from generation sites
Connection to this news: Indian Railways' 3 GW tender will contribute to India's overall 500 GW non-fossil fuel target. The railway's demand provides a large, stable off-taker for renewable energy projects, improving their financial viability.
Open Access and Group Captive Procurement Models
Large electricity consumers in India can procure renewable energy through Open Access (under the Electricity Act, 2003) or through Group Captive Power Plant arrangements. Open Access allows consumers with loads above 1 MW (reduced from 1 MW under the Electricity (Amendment) Rules, 2022) to purchase electricity from any generator, paying wheeling and banking charges. Indian Railways, as a bulk consumer, can use these mechanisms to procure solar and wind power from remote generating stations.
- Electricity Act, 2003: Section 42 provides for Open Access in distribution; Section 86(1)(e) mandates state RPOs
- Renewable Purchase Obligations (RPOs): mandatory percentage of renewable energy in total consumption; currently approximately 43% by 2030 (Ministry of Power notification)
- Green Energy Open Access Rules, 2022: simplified procedures, allowed consumers with 100 kW+ load
- Power Purchase Agreements (PPAs): typically 25-year contracts between generator and consumer
- Solar tariffs in India: fallen from Rs 17/kWh (2010) to approximately Rs 2.50/kWh (2025 auction levels)
Connection to this news: Indian Railways' Rs 18,000 crore renewable energy procurement likely involves long-term PPAs with competitive tariffs, significantly reducing its energy costs compared to grid tariffs (approximately Rs 6-7/kWh) and diesel costs (approximately Rs 70/litre).
Key Facts & Data
- FY27 renewable energy tender: 3 GW worth Rs 18,000 crore
- Total renewable capacity needed by 2029-30: approximately 30 GW
- Current renewable capacity installed by Railways: approximately 905 MW (812 MW solar + 93 MW wind)
- Indian Railways' annual electricity consumption: approximately 21 billion kWh
- Net zero target: 2030 (Indian Railways); 2070 (India overall)
- Railway electrification: over 95% of broad-gauge network completed
- India's total installed renewable capacity: approximately 203 GW (January 2026)