India’s renewable energy transformation is entering a new phase — one defined by system strength, stability, and sustainability rather than just rapid expansion. After a decade of record-breaking capacity additions, the focus is shifting toward building a resilient, dispatchable, and future-ready clean energy ecosystem to achieve the target of 500 GW of non-fossil capacity by 2030.
According to the Ministry of New and Renewable Energy (MNRE), India remains one of the fastest-growing renewable energy markets globally. The country’s approach is evolving — from speed to system strength, from scale to sustainability, and from capacity addition to integration and reliability.
In the past decade, India’s renewable energy capacity has increased more than fivefold, from under 35 GW in 2014 to over 197 GW today (excluding large hydro). The next phase, however, is about ensuring that this massive capacity can be effectively integrated into the national grid. Priorities now include improving grid integration, advancing energy storage, expanding hybrid projects, and reforming power markets — the essential pillars for a robust clean energy future.
Currently, over 40 GW of renewable projects are in advanced stages of securing power purchase agreements, transmission connectivity, or other regulatory clearances, reflecting strong investor interest. However, the pace of renewable deployment has outstripped that of grid and institutional infrastructure, underscoring the need to reinforce system frameworks.
To address this, the government is prioritising enforcement of Renewable Purchase Obligations, modernising transmission networks, and deploying advanced grid management technologies. Central Renewable Energy Implementing Agencies (REIAs) have already issued bids for 5.6 GW of capacity this year, while state agencies have added another 3.5 MW. Commercial and industrial consumers are also expected to contribute around 6 GW of new capacity in 2025 — signalling a diversified, multi-track growth model beyond government-led auctions.
Despite global headwinds such as supply-chain challenges and price volatility, India continues to add between 15–25 GW of renewable capacity annually, retaining its position as one of the world’s most dynamic clean energy markets.
Policy focus in recent years has shifted from expansion to system design and reliability. New tenders increasingly include storage and round-the-clock (RTC) renewable power components, ensuring dispatchable and firm green energy. Battery Energy Storage Systems (BESS) are being deployed at both project and grid levels, while domestic manufacturing is being scaled up through the Production-Linked Incentive (PLI) scheme and related measures to strengthen industrial depth and self-reliance.
Reforms such as rationalisation of GST structures and updates to the Approved List of Models and Manufacturers (ALMM) are improving cost efficiency, reliability, and domestic solar manufacturing. Battery storage, supported through viability gap funding and emerging storage obligations, is becoming a cornerstone of India’s renewable strategy.
Transmission infrastructure has emerged as a critical enabler for the next phase of growth. The government’s ₹2.4 lakh crore transmission plan for 500 GW of renewables aims to link resource-rich regions — including Rajasthan, Gujarat, and Ladakh — with major demand centres nationwide. Initiatives such as the Green Energy Corridors and upcoming HVDC lines are expected to unlock more than 200 GW of capacity in the coming years.
Inter-regional transmission capacity is projected to rise from 120 GW today to 143 GW by 2027 and 168 GW by 2032. Updates to the CERC General Network Access Regulations, 2025, have further enhanced transmission readiness by enabling time-segmented access and dynamic corridor sharing among solar, wind, and storage projects.
Even amid global economic uncertainties, India remains a preferred destination for renewable investments. With some of the lowest tariffs globally, the country offers long-term competitiveness and investor confidence. Global developers are increasingly focusing on integrated portfolios combining generation, storage, and grid services.
India’s renewable energy story is no longer about speed — it is about strength and maturity. The focus is now on synchronising capacity growth with grid stability, local manufacturing, and financial sustainability. Emerging instruments like Virtual Power Purchase Agreements and market-based mechanisms are set to deepen renewable energy adoption and attract greater private investment.
Large-scale hybrid and RTC projects are already underway in Rajasthan, Gujarat, and Karnataka, while offshore wind, pumped hydro, distributed solar, and agrovoltaic initiatives under PM Suryaghar and PM KUSUM are expanding renewable participation across sectors. The National Green Hydrogen Mission is further linking clean energy to industrial decarbonisation, marking the next frontier in India’s energy transition.
