India leads South Asia in renewable expansion with mature energy strategy

India’s renewable energy sector is approaching a major milestone. According to the Ministry of New and Renewable Energy (MNRE), the country’s non-fossil fuel-based power generation capacity is expected to reach around 300 gigawatts (GW) soon. Over 40 GW of renewable energy projects are in advanced stages of securing power purchase agreements (PPAs) and transmission connectivity, reflecting a robust pipeline of committed investment.

As of September 30, India’s non-fossil capacity stood at 256 GW, including 50 GW of large hydro and 8.78 GW of nuclear power. The additional projects under finalisation are projected to bring the total closer to 300 GW, supporting India’s broader target of 500 GW of renewable energy capacity by 2030.

From rapid growth to system integration

India has consistently maintained one of the fastest renewable growth rates globally. The country adds between 15 and 25 GW of renewable capacity annually, despite global challenges such as supply chain disruptions, fluctuating module prices, and tighter financing conditions. Domestic manufacturing incentives, including the Production-Linked Incentive (PLI) scheme and import duties, have strengthened the industrial base and reduced import dependency, ensuring resilience in the sector.

Over the past decade, India’s renewable capacity has grown more than fivefold, from under 35 GW in 2014 to over 197 GW (excluding large hydro) by 2025. This rapid expansion has created a new phase in the sector’s evolution—shifting the focus from sheer capacity addition to deeper system integration. MNRE describes this stage as one of “grid integration, energy storage, hybridisation, and market reforms,” essential for creating a stable, dispatchable, and resilient renewable energy architecture capable of supporting the nation’s 500 GW target.

Multi-pathway capacity addition

Capacity growth is increasingly driven by multiple channels. Central Renewable Energy Implementing Agencies (REIAs) conducted bids for 5.6 GW in 2025, while state agencies added 3.5 GW. Commercial and industrial consumers are expected to contribute nearly 6 GW. This multi-pathway expansion reflects the sector’s maturity, moving beyond reliance on central agency-led bids.

Currently, over 40 GW of awarded renewable projects are in advanced stages of securing PPAs, power sale agreements (PSAs), or transmission connectivity. MNRE emphasizes that ensuring firm grid access, upgrading transmission lines, and enforcing Renewable Power Purchase Obligations (RPOs) are critical priorities to maintain the momentum of capacity addition.

Policy recalibration and quality-focused growth

Policy attention has shifted from pure capacity expansion to system design. Auctions for renewable projects increasingly incorporate energy storage or peak power supply obligations, signaling a move toward firm, dispatchable power. Battery Energy Storage Systems (BESS) are being integrated at both grid and project levels, creating new market opportunities.

Domestic manufacturing policies, including the PLI scheme, Domestic Content Requirements, and aligned fiscal incentives, are consolidating the solar value chain, stabilizing module prices, and promoting technology assurance. Reforms in Goods and Services Tax (GST) structures and Approved List of Models and Manufacturers (ALMM) provisions further support cost rationalization and industrial depth.

These measures indicate a shift from rapid expansion to quality-driven growth, focusing on structural resilience, market depth, and system reliability. While visible capacity addition may temporarily moderate, the sector is laying foundations for a robust and sustainable energy transition.

Transmission infrastructure

Transmission upgrades are central to India’s renewable strategy. The government’s Rs 2.4 lakh crore Transmission Plan for 500 GW aims to link renewable-rich states with demand centres. High-capacity transmission lines from Rajasthan, Gujarat, and Ladakh, alongside Green Energy Corridors, are expected to unlock over 200 GW of future renewable capacity.

Inter-regional transmission capacity is set to expand from 120 GW today to 143 GW by 2027, and 168 GW by 2032. Recent amendments to the Central Electricity Regulatory Commission (CERC) General Network Access regulations, including time-segmented access for solar and non-solar hours, are designed to reduce congestion, improve flexibility, and accelerate project execution. These reforms are critical to integrating intermittent renewable resources while ensuring grid stability.

India’s regional leadership in renewables

India’s progress has outpaced regional peers. A recent report by S&P Global Ratings highlighted that India leads South and Southeast Asia in renewable capacity additions. While countries such as Indonesia, Vietnam, and the Philippines continue to face financing and infrastructure challenges, India benefits from low-cost renewables, a mature competitive bidding framework, supportive regulation, and growing storage tenders.

Between January and September 2025, India added 35 GW of renewable capacity, keeping it on track to meet annual targets and long-term goals under the “Panchamrit” commitments announced at COP26 in 2021. These include 500 GW of non-fossil capacity, meeting half of energy demand through renewables, reducing emissions by one billion tonnes by 2030, and reaching net-zero by 2070.

Looking ahead: integration, storage, and hybridisation

The next phase of India’s renewable transition is defined by integration and system strength rather than speed alone. Large hybrid and round-the-clock (RTC) projects are progressing in Rajasthan, Gujarat, and Karnataka. Offshore wind and pumped hydro storage are gaining traction, while distributed solar and agrovoltaic initiatives, such as PM Suryaghar and PM KUSUM, deepen rural participation. The National Green Hydrogen Mission links renewables with industrial decarbonisation, complementing grid-strengthening initiatives like Green Energy Corridor Phase III.

Market-based mechanisms, including Virtual Power Purchase Agreements (VPPAs) and green attribute trading, are expanding private sector participation and creating flexible, demand-driven renewable markets. These instruments, combined with day-ahead and real-time market integration, are shaping a more resilient energy ecosystem.

A mature renewable energy transition

India’s renewable energy journey is no longer defined by quarterly additions alone. It is evolving into a mature, integrated, and resilient system. By synchronising capacity expansion with grid strength, local manufacturing, financial discipline, and market reforms, the sector is consolidating the gains of the past decade while preparing for the next phase of growth. India’s renewable story has not lost momentum; it has gained maturity, setting a benchmark for the region and establishing a path toward a secure, sustainable, and low-carbon energy future. 

The featured photograph is for representation only.