India's Renewable Energy Transition Matures: From Rapid Growth to Systemic Strength

India's renewable energy sector is undergoing a critical evolution—from a phase defined by rapid capacity addition to one focused on building a robust, dispatchable, and integrated clean energy system. After a decade of exponential expansion, the emphasis is shifting toward sustainability, stability, and institutional readiness to support the nation's ambitious goal of achieving 500 GW of non-fossil fuel capacity by 2030.

From Speed to Stability: A Shift in Focus

Between 2014 and 2024, India's renewable energy (RE) capacity (excluding large hydro) grew from under 35 GW to over 197 GW—a more than fivefold increase. This achievement places India among the fastest-growing RE markets globally. However, as the sector matures, the focus has pivoted from sheer volume to ensuring quality and resilience. The current trajectory is not a slowdown but a recalibration. A moderate pause in capacity additions is allowing the sector to focus on critical enablers like grid integration, storage infrastructure, hybridization, and market reforms.

Reinforcing System Strength and Dispatchability

India's energy transition has entered a deeper, more complex phase where the challenge is no longer about adding capacity but absorbing it. The grid must evolve to support large-scale renewable inflows. This includes:

• Energy Storage Systems (ESS): Grid and project-level Battery Energy Storage Systems (BESS) are becoming essential to ensure dispatchability and peak demand coverage.

• Hybrid and Round-the-Clock (RTC) Projects: New auctions now prioritize hybrid (solar-wind-storage) and RTC models, which deliver firm power supply rather than intermittent green energy.

• Domestic Manufacturing Boost: Through Production-Linked Incentives (PLI), the imposition of duties, and the Approved List of Models and Manufacturers (ALMM), India is promoting solar manufacturing, reducing import dependence, and ensuring quality control.

Multi-Pathway Capacity Addition

Contrary to the perception of a slowdown, renewable capacity continues to be added through multiple pathways:

• Central REIAs: Bids totaling 5.6 GW have been floated in 2025 so far.

• State Agencies: Another 3.5 MW has been bid at the state level.

• Commercial and Industrial (C&I) Sector: Expected to independently add nearly 6 GW of RE in 2025.

• Hybrid Project Pipeline: Over 40 GW of awarded projects are in the pipeline, awaiting power purchase agreements (PPAs), power sale agreements (PSAs), or transmission connectivity.

While global challenges like supply chain disruptions, rising module costs, and financing constraints have caused commissioning delays, India continues to add 15–25 GW annually—maintaining its global leadership in RE deployment.

Transmission: The Next Growth Enabler

Transmission is emerging as the linchpin of the next RE phase. The ₹2.4 lakh crore transmission plan for 500 GW of non-fossil capacity includes:

• Green Energy Corridors & High-Voltage Lines: Major projects in Rajasthan, Gujarat, and Ladakh will unlock over 200 GW of RE potential.

• Inter-Regional Transmission Capacity: Set to increase from 120 GW to 168 GW by 2032.

• General Network Access (GNA) Reforms 2025: These include:

  • Time-Segmented Access: 'Solar-hours' and 'non-solar-hours' allow dynamic corridor sharing.

  • Source Flexibility and Substation Transparency: These reforms reduce congestion and speculative allocations.

These grid reforms ensure that renewable power can reach high-demand regions efficiently and unlock stranded capacity.

Strategic Policy Evolution: Market Instruments and Reforms

India's RE policy landscape is now geared toward long-term market integration:

• Virtual Power Purchase Agreements (VPPAs): Corporates can now virtually contract renewable power, decoupling procurement from physical delivery. This enhances demand certainty and eases offtake bottlenecks.

• Green Attribute Trading: Instruments like Renewable Energy Certificates (RECs) and market-based ancillary services are deepening market flexibility.

• Real-Time Market Integration: Through CERC regulations and amendments to the Electricity Act, RE is being incorporated into short-term power markets, boosting investor confidence.

Together, these instruments are creating a resilient, financially viable, and demand-responsive clean energy market.

Anchoring Investment and Global Confidence

India remains a top investment destination for global clean energy capital. Key drivers include:

• Lowest RE Tariffs: Among the most competitive globally.

• Policy Continuity: Consistent regulatory frameworks and sovereign tenders attract long-term investors.

• Storage-Backed Portfolios: Global investors are pivoting toward projects integrated with battery or pumped storage.

The fundamentals—rising electricity demand, cost competitiveness, and decarbonisation commitments—remain robust.

Rural Inclusion, Green Hydrogen, and Future Frontiers

Several emerging initiatives are shaping India's RE future:

• Agrovoltaics & Distributed Solar: Under PM-KUSUM and PM Suryaghar, solar capacity is being taken to villages and farms, empowering rural India.

• National Green Hydrogen Mission: Aims to link RE with industrial decarbonization.

• Offshore Wind and Pumped Storage: New tenders and viability gap funding are expected to catalyze growth in these long-gestation sectors.

• Green Energy Corridor Phase III: Aimed at better integration of renewables into the grid with smart and flexible transmission infrastructure.

Looking Beyond Numbers: A Transition Growing Up

India's renewable journey is entering a 'Viksit Bharat' phase—a maturity curve where the focus is on integration, durability, and long-term sustainability, not quarterly capacity numbers. By building local manufacturing, ensuring financial discipline, and strengthening transmission and market mechanisms, the country is laying the foundation for a clean energy future that is not only fast, but also stable and self-reliant.

This transition, while complex and slower in visible growth metrics, is structurally transformative. India is not pausing—it is preparing to scale in a smarter, stronger, and more secure manner.