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India’s Renewable Energy Transition Shifts Focus to Grid Strength and System Stability

India’s renewable energy sector is entering a new chapter—one marked not just by rapid expansion, but by the growing strength and stability of its clean energy systems. After a decade of record installations, the country’s focus is shifting toward building a resilient, dispatchable, and future-ready power ecosystem to achieve the target of 500 GW of non-fossil fuel capacity by 2030.

According to the Ministry of New and Renewable Energy (MNRE), India continues to be one of the fastest-growing renewable energy markets globally. The approach is now evolving from rapid expansion to sustainable integration, prioritizing system robustness, energy reliability, and long-term grid security.

Over the last ten years, India’s renewable capacity has increased more than fivefold—from less than 35 GW in 2014 to over 197 GW today (excluding large hydro). The next phase of growth will focus on integrating this capacity efficiently into the national grid, supported by advances in energy storage, hybrid projects, and power market reforms.

Currently, more than 40 GW of renewable projects are in advanced stages of securing power purchase agreements (PPAs), transmission connectivity, or other regulatory approvals, underlining the strength of the development pipeline. However, capacity growth has outpaced the expansion of supporting grid infrastructure, highlighting the need to reinforce the institutional and transmission framework.

Government Measures to Strengthen the Sector

To address this, the government is emphasizing the enforcement of Renewable Purchase Obligations (RPOs), accelerating transmission upgrades, and deploying advanced technologies for grid management. Central Renewable Energy Implementing Agencies (REIAs) have issued bids for 5.6 GW of capacity so far in 2025, while state-level tenders account for an additional 3.5 MW. The commercial and industrial segment is also expected to add nearly 6 GW of capacity this year, signaling diversified growth across market segments.

Despite headwinds such as supply-chain disruptions and price fluctuations, India continues to add between 15 GW and 25 GW of renewable capacity annually, reinforcing its position as one of the world’s fastest-growing clean energy markets.

Policy and Technology Trends

Policy direction has evolved toward firming up the renewable ecosystem. Recent tenders increasingly include energy storage and round-the-clock green power components to ensure dispatchable renewable supply. Battery Energy Storage Systems (BESS) are being deployed at both project and grid levels, supported by domestic manufacturing incentives under the Production-Linked Incentive (PLI) scheme and other initiatives to boost self-reliance.

Reforms such as rationalized GST structures and updates to the Approved List of Models and Manufacturers (ALMM) are improving cost stability and strengthening India’s solar manufacturing base. Viability gap–funded storage projects and emerging storage obligations are also laying the foundation for a reliable renewable energy network.

Transmission Infrastructure and Grid Readiness

Transmission infrastructure has emerged as the backbone of the next growth phase. The government’s ?2.4 lakh crore transmission expansion plan aims to connect renewable-rich regions such as Rajasthan, Gujarat, and Ladakh with major demand centers nationwide. This initiative—along with Green Energy Corridors and upcoming high-voltage direct current (HVDC) lines—is expected to unlock over 200 GW of renewable potential in the coming years.

Inter-regional transmission capacity is projected to rise from 120 GW to 143 GW by 2027, and to 168 GW by 2032. The recent amendments to the CERC General Network Access (GNA) Regulations, 2025, have further enhanced transmission readiness by enabling dynamic corridor sharing between solar, wind, and storage projects.

Even amid global economic uncertainties, India remains a preferred investment destination for clean energy. Competitive tariffs and strong policy backing continue to attract domestic and international developers focusing on integrated portfolios combining generation, storage, and grid support.

Next Phase of India’s Renewable Energy Growth

India’s renewable energy story is now maturing—transitioning from expansion to endurance. The emphasis is on synchronizing capacity growth with grid stability, manufacturing depth, and financial discipline. Mechanisms such as Virtual Power Purchase Agreements (VPPAs) and market-based reforms are expected to drive further investment and deepen the renewable energy market.

Large-scale hybrid and round-the-clock renewable projects are already advancing in Rajasthan, Gujarat, and Karnataka. Meanwhile, offshore wind, pumped hydro storage, distributed solar, and agrovoltaic initiatives under schemes like PM Suryaghar and PM-KUSUM are broadening participation across sectors. The National Green Hydrogen Mission is also linking renewable power with industrial decarbonization, signaling the next stage of India’s clean energy evolution.