China has always been at the forefront of innovation, but this Asian country is advocating for a place among the top green energy powerhouse. Renewable energy has moved from being a niche ambition to a central strategy in global power markets. Governments across Asia are racing to increase clean capacity—not just to meet climate goals, but to reshape their energy security. For years, fossil fuels anchored growth, but a new wave of policy and investment is rewriting the script across the region.

New leader in the search for renewable energy: Asia is dominating the race

That shift is more than symbolic—it’s increasingly tangible. Rapid electrification, rising demand, and climate pressure are converging, pushing countries to deploy solar, wind, and other renewables at record pace. The result: emerging markets are becoming the new frontiers of power innovation, where the stakes—and possible effects—are higher than ever.

Among these transitions, one nation is making a particularly bold move. In just the first half of 2025, it added a staggering 22 GW of renewable energy capacity—far and away its biggest six-month surge on record. Solar led the way, complemented by new wind and bioenergy projects, all accelerated by strategic government incentives – just like companies in China have.

India beats China and set new record: “friendly” competition ahead?

India added 22 gigawatts of renewable energy capacity in the first half of 2025, marking its strongest six-month growth on record, according to analysis by Rystad Energy. This surge represents a 57% increase compared to the 14.2 gigawatts installed during the same period last year. Solar power led the expansion with 18.4 gigawatts, followed by 3.5 gigawatts of wind and 250 megawatts of bioenergy.

The boost came largely as developers rushed to capitalize on a government waiver of Interstate Transmission System charges. Starting at 25%, the waiver reduces project costs and will phase out gradually by mid-2028, encouraging accelerated investment. These gains bring India closer to its target of sourcing half of its installed power capacity from clean energy, now standing at 234 gigawatts.

Nuclear power is also becoming more popular, with the recent commissioning of Unit 7 at the Rajasthan Atomic Power Project and approval of the country’s first small modular reactor in Bihar. Yet, coal continues to dominate India’s energy mix, presenting constant problems amid debates over nuclear safety, cost, and waste management.

Growth in multiple sectors: energy, transportation and company incentive

Battery energy storage is another growth area. India has awarded developers contracts for 5.4 gigawatts of collocated solar-plus-storage capacity and 2.2 gigawatts of standalone battery systems, both the largest allocations so far. Major players include Jindal Group, NTPC, ReNew, JSW Energy, and Reliance Power. The western states remain leaders in renewable rollout.

Rajasthan tops the list with 37.4 gigawatts installed, closely followed by Gujarat with 35.5 gigawatts, and Tamil Nadu with over 20 gigawatts. India is also developing the first hydrogen commercial train in the world. While California has plans to launch its own model that would help with the traffic, pushbacks along the years delayed the project, while India went full speed on this.

China vs. India: the competition for renewable sources of energy

In 2024, China began construction on 94.5 gigawatts of new coal-fired power capacity and resumed work on an additional 3.3 gigawatts of previously stalled projects. This marks the highest level of coal power development in the past decade, according to reports from two think tanks.

Though China’s expanding clean energy capacity is expected to gradually reduce coal’s share of electricity production, especially as it aims to peak carbon emissions by 2030 and reach carbon neutrality by 2060, the swift rise in coal-fired power complicates these environmental targets. The tension between growing coal infrastructure and climate goals highlights the challenges ahead, as China is the world’s largest energy consumer.