In the last decade, India’s renewable energy capacity has grown more than fivefold—from under 35 GW in 2014 to over 197 GW (excluding large hydro) today. The government has underscored that this exponential growth has reached a stage where the next leap will demand not just more megawatts but deeper system reforms.With the next phase of expansion taking shape, the Ministry of New and Renewable Energy (MNRE) has outlined the following ongoing initiatives as key growth drivers:
Large hybrid and round-the-clock (RTC) projects moving into execution across Rajasthan, Gujarat, and Karnataka
Offshore wind and pumped hydro storage
Distributed solar and agrovoltaic initiatives under PM Suryaghar and PM KUSUM, deepening rural participation
The National Green Hydrogen Mission linking renewables with industrial decarbonisation
Renewable energy integration through Green Energy Corridor Phase III
A mature sector, not slowing down
Stating that India’s clean energy transition is “not defined by quarterly numbers but by institutional durability and stickability,” the MNRE said the sector is synchronising capacity growth with grid strength, local manufacturing, and financial stability—suggesting that India’s renewable story has not lost momentum but gained maturity.Over 40 GW of awarded renewable projects are now in advanced stages of securing PPAs, PSAs, or transmission connectivity—reflecting a strong pipeline of committed investment. MNRE noted that the outpacing of India’s renewable market by its grid and contractual institutions is a challenge common to all countries undergoing large-scale energy transitions.In this context, enforcement of Renewable Purchase Obligations by states and DISCOMs, upgrading transmission infrastructure, and deploying technology for grid integration have been identified as top priorities before launching large-scale RE bids. In 2025 so far, Central Renewable Energy Implementing Agencies (REIAs) have issued bids for 5.6 GW, while state agencies have bid for 3.5 GW. Additionally, commercial and industrial consumers are likely to add nearly 6 GW of renewable capacity in 2025. According to MNRE, capacity expansion is progressing through multiple pathways, not only via REIA-led bids.Despite global headwinds such as supply-chain disruptions, fluctuating module prices, and tighter financing conditions, India continues to add 15-25 GW of new renewable capacity annually. Over the past two years, policy focus has shifted from pure capacity growth to system design—with tenders for renewable power bundled with energy storage or peak power supply now dominating auctions. This marks a clear move toward firm and dispatchable green power. Battery Energy Storage Systems (BESS) are being integrated at both grid and project levels, creating a new market segment.Domestic manufacturing gains momentumDomestic manufacturing—supported by Production-Linked Incentives (PLI), Domestic Content Requirements, import duties, Approved List of Models and Manufacturers (ALMM), and duty exemptions for capital equipment—is reducing import dependence and creating industrial depth.The recalibration of GST structures and ALMM provisions has been described as a strategic consolidation phase, aligning fiscal policy with the twin goals of strengthening the domestic value chain and ensuring technology assurance. These steps aim to stabilise costs, enhance module reliability, and promote scale efficiencies in India’s maturing solar manufacturing ecosystem. Concurrently, battery storage deployment is advancing through viability gap-funded projects, sovereign tenders, and emerging storage obligations—laying the groundwork for firm, dispatchable renewable capacity. Together, these measures mark a shift from expansion-led growth to a more resilient, quality-driven, and system-integrated renewable energy architecture.On transmission, India’s grid is being reimagined through the ₹2.4 lakh crore Transmission Plan for 500 GW, linking renewable-rich states with demand centres. The government is prioritising investments in transmission infrastructure via the Green Energy Corridors and new high-capacity lines from Rajasthan, Gujarat, and Ladakh. Once operational, these multi-year projects will unlock over 200 GW of new renewable capacity. Plans are underway to expand high-voltage direct current (HVDC) corridors and increase inter-regional transmission capacity from 120 GW today to 143 GW by 2027 and 168 GW by 2032.CERC reforms to ease grid accessRecent amendments to the CERC General Network Access (GNA) Regulations 2025 aim to strengthen transmission readiness. The introduction of time-segmented access—“solar-hours” and “non-solar-hours”—allows dynamic sharing of corridors between solar, wind, and storage projects, unlocking idle capacity and easing congestion in RE-rich states. Provisions for source flexibility, stricter connectivity norms, and greater substation-level transparency further streamline grid access and curb speculative allocations.To complement physical grid expansion, Virtual Power Purchase Agreements (VPPAs) and other market-based instruments are emerging as catalysts for renewable energy deployment. VPPAs allow corporate and institutional buyers to contract renewable power virtually—decoupling procurement from physical delivery—thereby deepening demand, providing price certainty to developers, and stimulating private investment in projects awaiting grid connectivity.Coupled with green attribute trading, market-based ancillary services, and integrated day-ahead and real-time markets, these tools are creating a flexible, demand-driven ecosystem for renewable growth. Such mechanisms are being incorporated under the Electricity (Amendment) Bill and CERC market regulations, with enabling policy support from MNRE and the Ministry of Power, to align corporate procurement, grid flexibility, and national decarbonisation goals.
Source link
