India’s renewable energy sector is entering a new phase, marked by a shift from stand-alone renewable capacity addition to the delivery of firm and despatchable renewable power. The rapid uptake of round-the-clock (RTC) renewable models, expanding storage pipelines and rising energy demand, especially from energy-intensive industries and data centres, are reshaping developer strategies. However, the next wave of growth will hinge on robust transmission infrastructure, stable regulations and calibrated policy support for domestic manufacturing and emerging technologies. Leading renewable energy developers discuss the state of the sector, the key challenges faced by them and the outlook for the future. Edited excerpts…
How do you assess the current state of India’s renewable energy sector, particularly in terms of growth across the solar, wind, hybrid and storage segments? What are the key trends that have emerged in project development over the past year?
Akshay Hiranandani 
India’s renewable energy sector has sustained its strong growth trajectory over the past year, marked by record capacity additions across solar, wind and hybrid projects, along with an accelerated adoption of energy storage solutions. The sector’s total renewable capacity now stands at around 250.64 GW, reflecting a nearly threefold increase over the past decade. Solar continues to be the primary growth engine, accounting for close to 25 per cent of the installed power capacity, while the wind segment has begun to revive with fresh project announcements and repowering initiatives.
A notable shift this year has been the rapid scale-up of hybrid and RTC renewable energy projects, supported by battery energy storage systems (BESS) and pumped storage plants (PSPs). These models are effectively addressing intermittency challenges and enabling the delivery of firm, despatchable power – a structural progression for India’s renewable energy ecosystem. Tender activity has also diversified, with a rising share of storage-linked auctions and open access projects, particularly in the commercial and industrial (C&I) segment.
Private sector participation has remained strong, driven by supportive policies, falling technology costs and increasing demand for firm green power from energy-intensive industries such as manufacturing and data centres.
Dhananjay Kumar
India’s renewable energy sector is in a decisive growth phase, with momentum shifting from scale to sophistication. The country has added nearly 86 GW of renewables in the past five years and close to 25 GW in the first half of FY 2025 alone. With about half of its installed capacity now coming from non-fossil sources, India has firmly established itself as the world’s fourth-largest renewable energy generator. Over the past year, the biggest trend has been the accelerating shift toward hybrid, RTC and storage-linked projects, as the market recognises that the next 500 GW must deliver reliability, not just capacity. Co-located storage, advanced forecasting, digital operations and maintenance (O&M) and predictive maintenance are increasingly becoming standard practices. Corporate procurement is also rising sharply, with corporate power purchase agreements and virtual PPAs (VPPAs) on track to expand from 12 GW in 2023 to nearly 100 GW by 2030. At ENGIE, these shifts mirror our own evolution, whether through water-free robotic cleaning at our Bhadla plant, real-time analytics through our Fleet Performance Diagnostic Centre, or embedding storage into future project designs. The focus is squarely on delivering firm, predictable and digitally intelligent power.
Kapil Kumar
India’s renewable energy sector is transitioning from rapid capacity addition to a more integrated and reliability-driven phase. Solar remains the dominant growth driver, while wind is regaining momentum with planned onshore/offshore developments. The increasing adoption of hybrid and storage-linked projects reflects a clear shift towards firm, despatchable renewable power. The Ministry of New and Renewable Energy’s updated solar potential estimate of around 3,343 GW underscores significant future opportunity. While policy support for transmission and evacuation infrastructure has strengthened progress, the next phase will require the faster deployment of storage, streamlined financing, and timely project execution to sustain momentum and meet India’s 2030 renewable energy goals.
How is the growing demand for RTC and firm renewable power influencing project design and business models? From a developer’s perspective, what are the key operational and financial challenges in implementing these projects?
Akshay Hiranandani
The sector has seen a definitive shift towards hybrid configurations that combine solar, wind and energy storage to deliver reliable and despatchable green power. This evolution is being driven by policy-backed tenders, rising corporate demand for firm green energy and the increasing affordability of both battery storage and pumped storage solutions. In addition, access to energy exchanges for buying and selling power has enhanced flexibility for developers.
Multi-location solar and wind sites, coupled with storage and intelligent energy management systems, allow developers to better manage variability, optimise transmission usage and ensure peak-hour delivery. India currently has over 5.8 GW of storage capacity at various stages of development, including PSPs across states such as Andhra Pradesh, Maharashtra and Chhattisgarh. These projects are being supported by advanced digital controls, improved forecasting tools and flexible commercial structures that prioritise availability and load-following capabilities over simple energy output. As a result, business models are evolving – from traditional energy-sale contracts to hybrid revenue models built on capacity, reliability and performance-linked incentives.
However, this transition is not without challenges. Key operational and financial hurdles include grid integration issues and transmission bottlenecks in renewable-rich states where generation capacity has grown faster than infrastructure upgrades. Financing has also become more complex, as lenders are adjusting to new risk profiles involving technology degradation, multiple revenue streams and stringent delivery commitments.
Moreover, while the strong policy push for domestic manufacturing is strategic for long-term energy security, it may increase project costs and create short-term supply constraints, mirroring earlier experiences under the domestic content requirement regime. Developers must also strategically navigate evolving procurement norms and tariff structures, which are still maturing, to fully recognise the value of firmness and flexibility offered by RTC projects.
Dhananjay Kumar
RTC demand is reshaping how developers design, procure and operate assets. Instead of stand-alone solar or wind assets, developers are now building hybrid systems that integrate solar, wind and storage from day one to ensure predictable output across the day. This shift is also transforming business models. Power purchase agreements (PPAs) are increasingly incorporating storage-linked structures, time-block commitments and mechanisms that guarantee firmness rather than just capacity. For developers, the challenge lies in matching high reliability requirements with a cost base that includes capital-heavy storage and complex grid interactions. On the operational side, transmission readiness, curtailment risks, GNA and Section 68 approvals, and evacuation delays remain real constraints. Financially, achieving competitive tariffs depends on a combination of execution discipline, digital optimisation and bankable frameworks that address open access clarity, REC attribution and payment security. ENGIE is responding to this by embedding battery storage early in project design, using AI-driven forecasting to reduce curtailment, and leveraging predictive O&M, which has already improved fleet availability by up to 10 per cent.
Kapil Kumar
The rising demand for RTC and firm renewable power is reshaping project planning, with developers increasingly adopting hybrid models combining solar, wind and energy storage under a single PPA. This approach significantly improves reliability and the capacity utilisation factor, with storage, particularly BESS, enabling peak-time delivery. Pumped hydro and strategic capacity oversizing are also being explored to strengthen firm output.
However, implementing RTC projects introduces operational and financial challenges. Seasonal variability, storage performance uncertainty, deviation settlement mechanism exposure and transmission readiness continue to affect planning and execution. Financially, RTC projects require substantially higher capital investment and more complex due diligence, often extending financing timelines. Competitive tariffs further necessitate precise design, stable regulation and disciplined execution as the market transitions towards firm renewables.
What do you see as the next major area of opportunity for renewable energy developers in India? How do you see the economics of these new opportunities evolving, especially in terms of tariffs, viability and investor interest?
Pinaki Bhattacharyya 
The next major opportunity for renewable energy developers in India lies in the C&I segment as more states are opening up for green energy open access (GEOA), enabling industries to procure renewables at scale. The technology mix is evolving, moving from solar to hybrid projects and now to solar-plus-storage, which is increasingly being adopted across both the C&I and utility sectors. Storage is providing flexibility and helping match consumption with generation, while trading markets, including bilateral and derivative markets, are creating new opportunities for despatchable green energy. In terms of economics, the cost of electricity has come down, offering 20 per cent to 40 per cent savings for customers, and procurement volumes have grown significantly, reaching almost 200-300 MW at present. Policies such as the GEOA rules, interstate open access and VPPA frameworks have improved viability, and project financing has expanded substantially, with multiple leading lenders competing to fund projects, making financing more attractive. Even merchant power projects without long-term PPAs are seeing strong investor interest due to a vibrant energy trading market. Overall, these developments make renewable energy in the C&I segment extremely lucrative, predictable and central to India’s energy transition.
Akshay Hiranandani
The next major opportunity for developers lies in hybrid systems structured to deliver RTC power to large consumers and utilities. The economics of these new opportunities reflect the underlying role of performance and capital expenditure. With battery-pack prices declining globally and domestic manufacturing ramping up, solar-plus-storage projects are now able to offer levels of tariff competitiveness that were unthinkable just a few years ago. As developers integrate storage and leverage larger hybrid portfolios, unit costs continue to fall, making RTC offerings commercially viable.
Beyond this, emerging segments such as green hydrogen, data centres and industrial open access consumers are creating a robust demand pipeline for firm renewable energy. Recent policy tailwinds, including relaxed approval norms for pumped storage, production-linked incentives for battery manufacturing and expanded RTC tenders by the Solar Energy Corporation of India, are strengthening the investment case for developers.
Dhananjay Kumar
The biggest opportunity areas ahead are hybrid and RTC portfolios, corporate decarbonisation solutions and digitally enabled O&M. Hybrids and storage-backed systems will become the backbone of new utility procurement as India prioritises firmness over stand-alone generation. Corporate demand represents an equally powerful shift, with procurement expected to rise nearly eightfold to 100 GW by 2030 – driven by price certainty, ESG commitments and the need for despatchable clean power. The economics of these opportunities will strengthen as storage costs decline, revenue stacking expands and bankable VPPA structures mature. A third opportunity lies in digital O&M, where predictive analytics, robotic cleaning and remote fleet diagnostics are already improving outputs and lowering costs. ENGIE is positioned across each of these spaces through its global 10 GW storage ambition, its hybrid development plans in India and a dedicated Supply and Energy Management vertical, which enables ENGIE to offer end-to-end energy solutions that go beyond generation, including VPPAs, energy portfolio optimisation and green attribute monetisation such as renewable energy certificates and carbon credits.
Kapil Kumar
The next significant opportunity for renewable developers lies in delivering firm and flexible clean power solutions. The C&I segment is emerging as a major demand driver, particularly from energy-intensive sectors such as data centres, which are increasingly seeking hybrid solar–wind storage PPAs to support reliability and decarbonisation goals. This shift is accelerating the move from stand-alone assets to RTC-linked project structures.
Battery storage is expected to play a central role as costs decline and value streams expand across arbitrage, peak supply and ancillary services. In parallel, green hydrogen represents a medium-term opportunity supported by national policy and early industrial demand. Economics are improving, with RTC tariffs expected to reduce further. Investor confidence remains strong, provided there is regulatory stability and long-term offtake visibility. Developers with hybrid portfolios, storage capability and a roadmap towards green hydrogen will be best positioned as the market evolves.
What policy changes or government support would you like to see for accelerating renewable energy adoption?
Pinaki Bhattacharyya
The regulatory drivers that the C&I sector needs have been adopted in the GEOA rules. Developers will continue to need banking provisions, and policies need to be long term. There should be a time-bound provision for connectivity agreements. Transmission has to be ramped up because delays in setting up substations and transmission infrastructure lead to a national wastage of natural resources. However, innovative ideas such as using batteries and solar to utilise transmission lines at night are being implemented. Solar manufacturing should be globally competitive without any non-tariff barriers. The government has also reduced the goods and services tax, which is a very welcome move and has been requested for a long time.
Akshay Hiranandani
A key priority is addressing transmission and evacuation constraints. Despite strong capacity growth, several projects remain stranded due to grid bottlenecks and delayed interconnections. Accelerating green corridor development and instituting a single-window clearance mechanism for transmission infrastructure will be essential to unlock this capacity and ensure that new projects move seamlessly from allocation to commissioning. Equally important is establishing a framework where responsibility for power quality rests with the central transmission utility (CTU) rather than individual developers, with CTU-led large stations and substations ensuring uniform standards. Furthermore, India needs a stable and predictable policy roadmap supported by long-term incentives, enabling storage to scale as the true backbone of its renewable energy transition.
At the same time, the push toward domestic manufacturing must be carefully calibrated. Policymaking should, therefore, remain incentive-driven, encouraging competitiveness and innovation while ensuring continued access to global technologies and materials. Additionally, expanding blended finance mechanisms, offering credit guarantees and providing viability gap funding (VGF) for emerging technologies can significantly de-risk investments and improve bankability.
Dhananjay Kumar
The most effective acceleration will come from predictability and simplification. India’s next phase requires a policy shift from project-level approvals to portfolio-level planning. Streamlined and time-bound approvals for GNA, land and RoW – preferably through a single-window mechanism – would ease delays and unlock significant capacity. Equally important is treating storage as core infrastructure by offering long-term tenders, clear grid interaction rules and revenue models that support bankability. Developers also need harmonised regulations across states, clearer frameworks for open access and standardised VPPA contracts to spur large-scale corporate participation. Financing remains the backbone of growth and tools such as blended finance, viability gap funding, partial risk guarantees and foreign exchange hedging will be critical to lowering the cost of capital. Through its Catalyst Connect platform, ENGIE is working with policymakers, utilities and corporates to address systemic bottlenecks, ensuring that projects move from paper to power with greater speed, lower risk and a far stronger impact.
Kapil Kumar
Accelerating renewable energy adoption will require policy stability, consistent implementation and streamlined regulatory processes. Simplifying open access, interstate transmission system charges, wheeling and banking frameworks will be crucial to enable greater C&I participation, especially as demand for firm renewable power grows. Contract sanctity must be ensured by avoiding retrospective PPA changes and strengthening payment security mechanisms to enhance investor and lender confidence. Parallel development of transmission infrastructure, including the timely execution of green energy corridors and interstate evacuation systems, will be essential to support the upcoming hybrid and storage-linked capacity. Collectively, these measures will create a predictable, investment-ready environment, aligned with India’s clean energy ambitions.
