It is an exciting time for India’s renewable energy sector. With roughly 300 GW of installed clean and non-fossil-based energy capacity, and a well-mapped path for another 200 GW before the decade ends, the sector is geared up for tremendous growth.
Solar power has already crossed 160 GW of installations, with around 18 GW of capacity additions in just five months since the beginning of 2026-27. Meanwhile, with more than 55 GW of installations each, wind and hydro (mainly pumped storage) are growing at stable rates, driven by the demand for firm and blended renewable energy generation by utilities as well as corporates.
Global geopolitics are evolving constantly, with major renewable energy markets adopting protectionist trade policies and growing concerns around fuel availability amid ongoing conflicts. In the immediate term, these are serious challenges that need to be addressed.
However, in the long term, these are opportunities for India to ensure its future energy security, provided there is focused attention on efficiency improvements and the decarbonisation of every possible energy consumption point – right from cookstoves in households and solarisation of buildings to waste heat recovery and the use of green hydrogen in hard-to-abate industries, the transition to electric vehicles across every transport segment, and the establishment of clean data centres.
The country now needs an overarching “clean electrification” policy, with clear strategies laid out by every ministry, and an enabling power sector ecosystem to support this massive electrification drive. To make this vision a success, transmission and distribution infrastructure need to be upgraded and expanded with the integration of storage and digital tools; capacity markets need to be deepened; renewable energy installations need to be made free from bureaucratic hurdles; and synergies need to be found and capitalised on between different energy infrastructure assets.
To support this, legacy challenges around tariffs, land and right of way need to be resolved; coordination between the centre and states needs to be strengthened; manpower across the industry, utilities and regulatory agencies needs to be upskilled; and significant investments need to be made in the development of local power equipment manufacturing capabilities.
This global energy uncertainty is a chance for India to transform into an electrified, clean and energy-secure economy, and industries, households, utilities, financial institutions and government agencies must all together work to support this mission.
