India’s renewable engineering, procurement and construction (EPC) sector has witnessed accelerated growth in the last year, supported by a sharp rise in project execution and a maturing renewable energy ecosystem. Moreover, EPC players are increasingly adopting AI-driven technologies and digital tools to optimise costs and enhance the operational efficiency of projects. However, supply chain uncertainties, transportation issues and land readiness challenges need to be addressed for further growth. In this context, leading EPC players in the renewable industry discuss the state of the sector, and the key trends, issues and outlook for the future. Edited excerpts…
How has the market scenario been for EPC players over the past one year in terms of project pipeline expansion, financial risks and emerging business opportunities?
Sudhir Nain
The project pipeline for EPC players has remained healthy and robust over the past year. However, the conversion of this pipeline into on-the-ground projects faces significant challenges, primarily driven by two key constraints. The first is evacuation infrastructure delays, as the necessary power evacuation infrastructure is not being completed on time, and the other is challenges in securing the required land for projects. These two factors are elongating project timelines, consequently placing an additional burden on project finance. This situation is also negatively impacting the realisation of emerging business opportunities. Another critical impediment is the difficulty in signing power purchase agreements (PPAs) and power sale agreements (PSAs). Since a signed PSA is a primary requirement for a PPA, the inability to secure PSAs means projects cannot move forward with PPAs. While business opportunities exist, challenges relating to infrastructure, land and lack of signed PSAs and PPAs are preventing the pipeline from being converted into actual, executed projects.
Kushagra Nandan
The past year has marked a turning point for India’s compressed biogas (CBG) ecosystem. With the government’s Sustainable Alternative Towards Affordable Transportation (SATAT) initiative gaining momentum, EPC players have seen an unprecedented expansion in project opportunities. The sector is witnessing participation from energy developers, industries, oil marketing companies and state governments seeking decentralised waste-to-energy solutions.
For REnergy Dynamics (RED), the project pipeline has grown significantly across multiple states, covering both large-scale facilities and modular clusters. However, this growth comes with financial and operational risks, particularly related to feedstock assurance, seasonal price volatility and working capital cycles. RED addresses these through a techno-financial EPC model that integrates design, project execution and cost modelling to maintain project viability across diverse biomass types and geographies.
Simarpreet Singh
Over the past year, India’s engineering, procurement and construction market has witnessed strong growth in project execution, alongside evolving policy and supply chain challenges. Solar installations rose by around 31 per cent year on year in the first half of 2025, reaching nearly 18 GW, with 11.3 GW added in the second quarter (Q2) 2025 alone, marking one of the sector’s strongest quarters. Developers fast-tracked project commissioning to meet interstate transmission waiver deadlines, while the project pipeline expanded to nearly 191 GW, with another 131 GW tendered and pending auction.
However, tenders for utility-scale solar capacity declined by about 65 per cent year on year in Q2 2025, while auction activity dropped by nearly 75 per cent, driven by uncertainty around Approved List of Models and Manufacturers (ALMM) II and domestic content requirements. EPC players also faced curtailment challenges in Rajasthan amid transmission delays and variable demand, reflecting ongoing grid bottlenecks.
Despite these headwinds, over 40 GW of renewable projects are advancing through PPAs, PSAs and transmission tie-ups, alongside 9 GW of new tenders and 6 GW of commercial projects in 2025. The policy emphasis on hybrid projects, battery energy storage systems (BESS) and storage-linked renewable tenders signals India’s shift from capacity expansion to integration – fostering a more mature, innovation-driven landscape for EPC players.
Dr Sunit Tyagi
The past year has been strong for EPC players, with accelerated project announcements across utility-scale solar, hybrid projects and storage-linked tenders. Stabilising module prices and improving policy clarity have expanded the project pipeline significantly. Opportunities are especially emerging in BESS-integrated EPC, green hydrogen-ready systems and solar-wind hybrids.
At the same time, financial risks remain elevated. Balance of system cost fluctuations, duties on imports and liquidity constraints continue to influence EPC margins. Developers now expect faster execution, stricter service-level agreements and lifecycle accountability, making engineering strength, cost discipline and execution reliability essential. Climate-driven uncertainties, such as extreme weather, higher temperatures and erratic rainfall, have also made resilient plant design a critical requirement in upcoming projects.
What new technologies, practices and digital tools are being adopted to enhance project design, cost optimisation and operational efficiency across renewable installations?
Sudhir Nain
On the technological front, there is a significant shift towards using higher wattage modules, supported by advancements in cell structures like heterojunction (HJT) and TOPCon. This crucial development allows developers to reduce the number of panels required for a given system capacity, thereby maximising energy generation from the same parcel of land.
At Jakson Green, we are also focusing on meticulous system optimisation, particularly concerning loss mitigation. A key practice involves increasingly using larger-sized DC cables to reduce ohmic losses. A recent study by the Central Electricity Authority highlighted that significant transmission and technical losses continue to weigh heavily on India’s overall renewable output. Additionally, we pay great attention to optimal land layout with carefully designed project territories. Employing tighter but well-considered spacing guarantees a higher ground coverage ratio (GCR) and better land utilisation, which is especially critical in regions where securing large plots is challenging.
Adopting artificial intelligence (AI) is now fundamentally crucial, as it enables unprecedented levels of efficiency across the entire project lifecycle. In the design and planning phase, AI algorithms analyse geospatial data, topography and micro-climatic conditions to perform optimal site selection and layout design, maximising both GCR and projected energy yield while minimising construction risks. During construction, AI-driven predictive analytics and digital twins are used to model the process, identifying potential bottlenecks and optimising material logistics to ensure projects are completed on time and within budget.
We have launched EnergxIQ, where, through AI and predictive maintenance, we are transforming operations and maintenance (O&M). It analyses real-time data from sensors (SCADA) and drone-based thermal imaging to predict equipment failure before it occurs. This capability allows for scheduled, targeted maintenance, significantly reducing downtime, cutting O&M costs and maximising the plant’s availability factor. Through EnergxIQ, we get accurate energy generation forecasts by integrating weather patterns and historical performance data, which is essential for enhancing grid stability, optimising despatch schedules and enabling effective revenue management. AI has emerged as a powerful tool for continuous cost optimisation and sustained peak operational efficiency.
Kushagra Nandan
We have developed standardised modular CBG plant designs to ensure scalability, faster commissioning and reduced cost of execution. Each module, whether for digestion, gas upgrading or compression, is digitally modelled and optimised for local feedstock characteristics.
We employ 3D building information modelling, automated piping and instrumentation diagram generation, and internet of things (IoT)-based instrumentation for real-time process monitoring. These innovations enhance accuracy, predict bottlenecks early and improve O&M efficiency post-commissioning. Through collaborations with various technology partners such as Emerson and GMM Pfaudler, we have localised advanced process equipment like instrumentation and automation equipment, paddle agitators, and gas holders designed for Indian climatic and operational conditions. Additionally, our feedstock aggregation fleet, equipped with Krone baler machines and supported by drone-based monitoring, ensures consistent biomass supply, reducing one of the sector’s biggest uncertainties.
Simarpreet Singh
India’s renewable sector is embracing new technologies and practices to improve project design, cost optimisation and operational efficiency. The use of AI and IoT is enabling real-time monitoring, predictive maintenance and data-driven energy management, helping developers enhance performance and reduce downtime.
As demand for round-the-clock (RTC) green power grows, renewable generators are integrating with data centres and other large consumers through hybrid and flexible power models, supported by advanced forecasting systems and digital scheduling tools that ensure reliability and efficiency. BESS is also emerging as a critical enabler of grid stability and commercial viability, with growing deployment across interstate networks and behind-the-meter projects.
Parallelly, innovation in high-efficiency solar cell technologies, including TOPCon, HJT and perovskite tandem architectures, is expected to significantly enhance module performance and lower energy costs across future installations. Together, these advancements reflect a broader industry shift toward smarter, digitally enabled and cost-competitive renewable projects.
Dr Sunit Tyagi
The EPC sector has undergone a significant technological shift. Advanced project design and digitalisation are now the core drivers of cost optimisation and performance improvement. Key technologies gaining traction include:
- AI-driven design optimisation and energy modelling
- Tracker engineering and layout simulations for higher yield
- Drone thermography, I-V curve tracing and digital twins for faster, more accurate diagnostics
- Robotic cleaning systems, enabling uniform, waterless cleaning
- Supervisory control and data acquisition-enabled predictive analytics, condition-based maintenance and real-time performance ratio/capacity utilisation factor monitoring
- Hybrid and storage engineering tools for solar + wind + BESS integration
These tools collectively move the sector from reactive problem-solving to predictive maintenance, higher uptime and improved lifecycle value.
What are the key challenges faced by your company in renewable energy project execution, and how is it addressing issues relating to supply chain, timelines and cost pressures?
Sudhir Nain
While the industry continues to face persistent challenges relating to land availability, PPA signoffs and local community issues, the execution phase is dominated by a complex interplay of supply chain volatility, timeline slippages and resultant cost pressures. A central challenge is the protracted lead times for critical high-voltage equipment, particularly substation transformers and switchgear. These delays directly impact project schedules and significantly increase financing costs. Project timelines are under constant pressure from multiple external factors. The most significant drivers of slippage include land acquisition difficulties and substantial delays in evacuation infrastructure readiness. The long waiting periods for specialised substation equipment, combined with the slow pace of third-party infrastructure development, act as major timeline bottlenecks. Furthermore, site-specific issues like local disturbances and community resistance continue to cause hold-ups. To tackle these challenges, we are opting for a more complex, scattered layout approach, resulting in higher evacuation costs and more complex O&M.
To manage supply chain volatility and costs, we, at Jakson Green, establish long-term strategic procurement partnerships with major global suppliers. For timeline management, we leverage advanced project management tools to monitor progress closely and anticipate bottlenecks. For land acquisition hurdles, we come up with solutions to acquire multiple smaller plots and link them through overhead lines to create a unified project. However, this approach adds engineering complexity and higher transmission costs, but it has proven to be a practical way to keep scale intact. We have successfully transformed dispersed land parcels into utility-scale solar projects through smart design and active community involvement.
Kushagra Nandan
The most persistent challenges across EPC execution for CBG projects include supply chain coordination, feedstock logistics and execution within compressed timelines. RED mitigates these by adopting a cluster-based project approach, establishing multiple plants within defined zones to share procurement, logistics and manpower infrastructure.
We are also strengthening domestic vendor ecosystems to localise the manufacturing of biogas reactors, scrubbers and compressor skids, thereby reducing dependence on imports and ensuring cost stability. Internally, our project management teams use centralised digital dashboards to monitor procurement, material flow and site progress in real time. This data-driven visibility has improved our on-time delivery performance by over 20 per cent while maintaining quality and cost discipline.
Simarpreet Singh
Renewable project execution in India continues to face persistent challenges despite a 420 per cent year-on-year increase in capacity addition in June 2025. Issues related to supply chains, input costs and the integration of emerging technologies have led to rising module prices, logistics constraints and global trade imbalances, all of which can affect project timelines and cost predictability. Managing these complexities while ensuring quality and delivery efficiency remains a top priority for EPC players.
At Hartek, we have built a resilient, technology-driven execution framework to address these challenges head-on. Our power systems and distribution products vertical strengthens backward integration by manufacturing critical components such as control panels, switchgear and prefabricated substations in-house.
We have adopted a digital-first approach through the integration of SCADA systems, digital dashboards and AI-based monitoring tools that provide real-time visibility across all project sites. These tools empower our teams to proactively track progress, manage resources efficiently and identify potential bottlenecks well in advance. Predictive analytics and automated inventory systems further enhance procurement efficiency and material availability.
To address cost pressures, Hartek emphasises modular engineering, design optimisation and value-driven sourcing strategies. Our digital project management ecosystem enables faster decision-making, streamlined coordination and enhanced accountability across all stakeholders.
Dr Sunit Tyagi
Execution challenges largely stem from supply chain volatility, transportation bottlenecks, land readiness issues and grid evacuation delays. Climate-induced disruptions, such as heavy rains, heatwaves and storm events, increasingly impact construction windows and commissioning schedules. At InSolare, we address these challenges through:
- Strong in-house design, engineering and project-management teams, reducing external dependencies
- Diversified procurement and multi-vendor strategies to mitigate price shocks
- Standardised construction frameworks, digital quality control processes and parallel execution models
- Advanced planning using weather analytics to reduce climate-related downtime
- Milestone-based billing and structured financing to manage working capital pressure
- Vertical integration across EPC, O&M and storage engineering for tighter control and better risk mitigation.
How are policy frameworks, tender structures and domestic manufacturing requirements shaping EPC strategies and procurement decisions in the renewable energy sector?
Sudhir Nain
Policy frameworks and tender structures now play a defining role in shaping EPC strategies in the renewable energy sector, influencing project scale, technology configurations and long-term revenue mechanisms. As tenders increasingly require hybrid solutions and RTC power commitments, EPCs are compelled to move beyond traditional solar or wind deployment and integrate advanced energy storage systems, driving more complex system design, engineering and performance modelling. Simultaneously, domestic content requirement policies, such as mandatory use of modules listed under the ALMM, directly impact procurement decisions by pushing EPC players towards dual-sourcing strategies, heavier reliance on domestic manufacturing and supply-chain planning aligned with local production capacity. While this strengthens national industrial ecosystems, it also affects cost structures, component availability and contract timelines. Overall, the evolving policy, tender and localisation requirements are reshaping EPC approaches toward higher technology integration, cost-efficient and compliant sourcing, and more sophisticated commercial and risk management to remain competitive in a rapidly maturing renewable energy landscape.
Kushagra Nandan
Policy clarity has been a key driver of the sector’s acceleration. Government initiatives, such as GOBARdhan and SATAT, and the inclusion of CBG under the Ministry of New and Renewable Energy’s (MNRE) waste-to-energy schemes, have reinforced investor confidence. Additionally, the push for carbon credit frameworks and viability gap funding for bioenergy plants has begun to make projects financially attractive.
Tender structures are evolving, with an emphasis on lifecycle efficiency, local content and sustainability outcomes beyond simple capex optimisation. RED’s EPC strategy aligns perfectly with this shift. By leveraging indigenous manufacturing and modular engineering, we deliver projects that are cost-effective, future-ready and socially impactful. Each plant we build is not just an energy infrastructure asset but a catalyst for rural income, carbon reduction and circular economy growth.
Simarpreet Singh
Policy shifts over the past months have materially altered how EPCs plan, procure and price projects. A stronger domestic manufacturing push and localisation rules are moving tenders away from “lowest-cost, imported-equipment” outcomes towards bids that factor local content, quality and long-term supply security. Agencies and the MNRE are actively enforcing the new domestic sourcing requirements, including cancelling tenders that appeared to sidestep the local-module rule, which has made EPC players prioritise India-based vendors or build buffer inventory and alternative sourcing strategies.
Additionally, tax and fiscal changes are reshaping project economics and procurement behaviour. The GST cut on solar and related renewable equipment (from 12 per cent to 5 per cent, effective September 2025) has reduced capital costs and encouraged developers to re-price bids, restart stalled projects and pass on savings, all of which directly affect EPC contracting and supply chain choices.
The rapid scale-up of domestic manufacturing capacity is, however, a double-edged sword. While India’s module and cell production base continues to expand, it also brings inventory and pricing challenges. EPC players are now accelerating backward integration, strategic stockpiling and diversified procurement to manage overcapacity risks and stabilise margins.
Dr Sunit Tyagi
Policy is reshaping EPC strategy more today than at any point in the past decade. India’s nationally determined contributions commitments, domestic manufacturing push (ALMM), interstate transmission system policies and global mechanisms like the carbon border adjustment mechanism directly influence procurement planning, technology selection and compliance readiness.
Tender structures now increasingly mandate hybrid readiness (solar+wind+BESS), stronger performance ratio and uptime guarantee, greater financial and execution accountability, digital reporting and forecasting integration and stricter grid stability requirements (reactive power control, scheduling, forecasting). Developers are now seeking EPC partners who can deliver end-to-end solutions, not just construction, but also engineering, digitalisation, storage integration and long-term performance management.
