India’s Renewable Energy Transition Moves from Speed to System Strength

The Ministry of New and Renewable Energy (MNRE) has announced a strategic shift in India’s renewable energy trajectory from rapid capacity expansion to systemic integration and resilience, marking a new phase in the nation’s clean energy transition. This evolution aligns with India’s vision of achieving 500 GW of non-fossil fuel-based capacity by 2030 under the Viksit Bharat initiative.

Over the past decade, India’s renewable capacity has increased more than fivefold, rising from under 35 GW in 2014 to nearly 197 GW (excluding large hydro) as of 2025. With over 40 GW of projects currently in advanced stages of securing Power Purchase Agreements (PPAs) and transmission connectivity, the country remains among the world’s fastest-growing renewable markets.

In 2025 alone:

1. Central Renewable Energy Implementing Agencies (REIAs) held auctions for renewable projects totaling 5.6 GW;
2. State agencies held similar auctions for 3.5 GW, and
3. Commercial and industrial consumers are projected to add nearly 6 GW of renewable capacity.

This momentum underscores India’s continued leadership in renewable deployment.

The sector is now prioritizing ‘capacity absorption’ through grid integration, energy storage, hybridization, and market reforms. This deliberate shift aims to ensure stable, reliable, and sustainable growth. The emphasis is no longer just on megawatts, but on how clean energy can be reliably grid-integrated, dispatched and sustained.

Despite global challenges like supply chain disruptions, fluctuating module prices, and tighter financing conditions, India continues to add 15-25 GW of renewable capacity annually, maintaining one of the fastest growth trajectories worldwide.

Transmission has become the next critical frontier in India’s clean energy transition. Under the Rs. 2.4 lakh crore National Transmission Plan for 500 GW, the government is strengthening inter-regional connectivity through Green Energy Corridors and new high-capacity links from renewable hubs such as Rajasthan, Gujarat, and Ladakh.

MNRE is also expanding inter-regional transmission capacity through new High-Voltage Direct Current (HVDC) corridors, targeting an increase from the present 120 GW to 143 GW by 2027 and 168 GW by 2032. These efforts aim to bridge renewable-rich regions with major demand centers, easing transmission bottlenecks and unlocking over 200 GW of additional green power potential.

Supporting this system-strength approach are policy reforms, which include:

1. Battery Energy Storage Systems (BESS) at both grid and project levels;
2. Promoting domestic manufacturing incentives, through Production-Linked Incentive (PLI) schemes, customs duties, and the Approved List of Models and Manufacturers (ALMM) provisions reducing import dependency; and
3. Stabilizing project economics through GST recalibrations and domestic content requirements and promoting industrial depth.

Market mechanisms such as Virtual Power Purchase Agreements (VPPAs), green attribute trading, and day-ahead or real-time market integration are being strategically incorporated to deepen demand, provide price certainty, and enable corporate renewable procurement.

MNRE emphasizes that the next phase of India’s renewable growth will be anchored in:

1. Hybrid renewable storage projects and round-the-clock (RTC) projects in Rajasthan, Gujarat, and Karnataka;
2. Offshore wind and pumped hydro storage projects;
3. Distributed solar and agrivoltaic initiatives under the PM KUSUM and PM Suryaghar schemes; and
4. Green hydrogen projects linked to industrial decarbonization.

India’s renewable energy sector is entering a phase of maturity where the focus extends beyond capacity expansion to strengthening systems, deepening domestic manufacturing, enhancing grid integration, and ensuring financial stability. This transition marks a shift from rapid growth to sustainable acceleration, ensuring that future capacity additions are not only faster but also more resilient and self-reliant.