India’s Renewable Energy Capacity Continues Upward Trend

India’s renewable energy sector has continued its upward trajectory, with the country crossing a major milestone in installed renewable energy capacity. The growth has been primarily driven by rapid additions in solar and wind power, reinforcing India’s commitment to its clean energy and climate targets.

Solar energy remains the leading contributor to capacity expansion, supported by falling costs, large-scale solar parks, and policy incentives. Wind power has also regained momentum, particularly in states with favourable wind corridors. Together, these sources are strengthening India’s energy mix and reducing dependence on fossil fuels, while supporting the country’s long-term goal of achieving net-zero emissions.

Despite this progress, several challenges remain. One of the key concerns is grid integration. The intermittent nature of solar and wind power places stress on existing transmission and distribution infrastructure. Upgrading grid systems, enhancing forecasting mechanisms, and expanding inter-state transmission corridors are critical to ensuring reliable power supply.

Storage solutions represent another major bottleneck. Limited availability and high costs of energy storage technologies, such as battery systems and pumped hydro storage, constrain the ability to balance supply and demand. Scaling up storage capacity is essential for managing peak loads and improving grid stability as renewable penetration increases.

The financial health of distribution companies (DISCOMs) continues to pose a structural challenge. Payment delays and high losses affect investor confidence and slow project execution. Strengthening DISCOM finances through reforms, timely tariff revisions, and improved efficiency is crucial for sustaining renewable energy growth.

Overall, while India’s renewable energy expansion marks significant progress, addressing these systemic challenges will be key to translating capacity growth into a reliable and resilient clean energy transition.