India’s renewable energy sector is undergoing a strategic transformation. After nearly a decade of rapid expansion and becoming one of the fastest-growing clean energy markets globally, the focus is now shifting from the speed of capacity addition to the strength, reliability, and integration of the renewable energy ecosystem. The Ministry of New and Renewable Energy (MNRE) has highlighted this shift as essential for achieving India’s goal of 500 GW of non-fossil capacity by 2030, in alignment with the Viksit Bharat vision.
Between 2014 and 2025, India’s renewable energy capacity grew from under 35 GW to over 197 GW (excluding large hydro). However, MNRE emphasizes that the next phase is not just about adding megawatts but building a robust, dispatchable, and system-integrated clean energy architecture. The current slowdown in capacity additions is seen not as a setback, but as a necessary recalibration to focus on quality over quantity.
While central and state agencies together floated bids for over 9 GW of renewable capacity this year, commercial and industrial consumers are also contributing nearly 6 GW through direct procurement. Over 40 GW of renewable projects are in advanced stages, awaiting power purchase agreements (PPAs), power sale agreements (PSAs), or transmission connectivity. India’s multi-pathway approach to renewables continues to attract investors and developers, even as challenges around grid integration and financing remain.
Policy attention has shifted toward firm and dispatchable green power. Hybrid and Round-the-Clock (RTC) projects, energy storage systems, and grid-interactive tenders are now central to auctions. Battery Energy Storage Systems (BESS) are being deployed at both project and grid levels, laying the foundation for firm renewable capacity. Domestic manufacturing is also being strengthened through incentives like the Production-Linked Incentive (PLI) scheme and the Approved List of Models and Manufacturers (ALMM), reducing import dependence and fostering industrial resilience.
Transmission is now the critical bottleneck—and opportunity. The government has announced a ₹2.4 lakh crore Transmission Plan to connect renewable-rich states like Rajasthan, Gujarat, and Ladakh to major demand centres. Key upgrades include new High Voltage Direct Current (HVDC) corridors and the Green Energy Corridor Phase III. The recent amendments to General Network Access (GNA) regulations by CERC allow dynamic sharing of transmission corridors across solar, wind, and storage projects, enabling better utilisation and unlocking idle capacity.
Despite global headwinds such as fluctuating module prices and tighter financing conditions, India continues to attract global clean energy investors. Rather than exiting, these investors are repositioning toward integrated and storage-backed portfolios. The fundamentals—policy consistency, strong demand, and low tariffs—continue to support India’s clean energy ambitions.
The next phase of India’s renewable journey includes large hybrid and RTC projects, offshore wind, pumped hydro storage, distributed solar under schemes like PM Suryaghar and PM-KUSUM, and the National Green Hydrogen Mission. These projects aim to link renewables with industrial decarbonisation and rural energy access, building a more inclusive energy economy.
To complement physical infrastructure, market-based mechanisms such as Virtual Power Purchase Agreements (VPPAs), green attribute trading, and ancillary services are being developed. These tools aim to provide price certainty, deepen demand, and accelerate private investment in projects awaiting grid integration. Future regulatory changes under the Electricity (Amendment) Bill and CERC market regulations will further support flexible, demand-driven renewable growth.
India’s clean energy journey is no longer a sprint—it is an endurance strategy for long-term sustainability. The sector is aligning itself with international standards, local manufacturing strength, financial discipline, and smart grid infrastructure. As MNRE aptly describes it, India’s renewable energy sector has not lost momentum—it has gained maturity, preparing the ground for a stronger, smarter, and more resilient clean energy future.
