Supportive policies, strong private investment, and a rise in hybrid projects drive India’s leadership in regional clean energy shift

India has emerged as the frontrunner in South and Southeast Asia’s green energy transition, backed by a combination of government support, increased funding, and rapid renewable capacity expansion, according to a new analysis by S&P Global Ratings.

The report notes that India’s renewable energy additions have far outpaced coal-based capacity growth in recent years, placing it ahead of regional peers such as Indonesia, Vietnam, and the Philippines. Three key factors underpin this progress policy consistency, robust private-sector participation, and the scaling up of hybrid and energy-storage projects.

While other countries in the region face significant challenges ranging from inadequate grid infrastructure in the Philippines and Vietnam to sluggish renewable deployment in Indonesia. India’s progress reflects a coordinated national approach that aligns with its 2070 net-zero target.

S&P Global highlights that despite India’s momentum, the broader South and Southeast Asia region continues to lag behind global averages in renewable penetration. Uneven policy frameworks, fossil fuel dependence, and limited financing remain major barriers to accelerating the regional transition.

India’s experience, the report suggests, offers a template for emerging economies seeking to balance energy security, affordability, and sustainability while driving investment in renewables and green infrastructure.