New Delhi: Over 40 gigawatts (GW) of awarded Renewable Energy (RE) projects are presently in advanced stages of securing power purchase agreements (PPAs), power sale agreements (PSAs), or transmission connectivity, according to the Ministry of New and Renewable Energy (MNRE). The ministry said on Wednesday that this reflects the sector’s strong investment pipeline as India transitions from rapid capacity expansion to building a more resilient and system-integrated renewable energy ecosystem.
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In a statement, MNRE said India’s renewable energy growth story — one of the fastest in the world — is now shifting from “speed to system strength, from quantity to quality, and from expansion to enduring integration.” After a decade of exponential growth, the sector has reached a stage where the focus must move beyond megawatts to the mechanisms that enable stable and reliable renewable generation.
India’s renewable capacity has expanded more than five-fold in the past decade, from under 35 GW in 2014 to over 197 GW (excluding large hydro) at present. The ministry said the next leap will come not from adding capacity alone, but from addressing grid integration, storage, hybridisation, and market reforms — “the real foundations for a 500 GW-plus non-fossil future.”
While a moderation in capacity addition is visible, MNRE termed it a “recalibration” rather than a slowdown, meant to ensure that future growth is stable and dispatchable. It said the renewable market’s pace has outstripped that of the grid and contractual institutions — an issue common to all fast-growing energy markets.
The ministry identified enforcement of Renewable Purchase Obligations (RPO) by states and distribution companies, upgrading transmission networks, and using advanced grid-integration technologies as immediate priorities before launching large-scale renewable bids.
In 2025, central renewable implementing agencies have conducted bids for 5.6 GW, while state agencies have floated tenders for 3.5 GW, said the MNRE. Additionally, commercial and industrial consumers are expected to add nearly 6 GW of capacity this year, underscoring that growth is advancing through multiple channels and not only through centralised bidding.
Despite global headwinds — supply-chain disruptions, volatile module prices, and tighter financing conditions — India continues to add 15–25 GW of new capacity annually, maintaining its position among the world’s fastest-growing clean energy markets.
According to MNRE, policy attention over the past two years has shifted decisively toward system design. Renewable energy tenders now commonly include energy storage and peak supply requirements, signifying a move toward firm, dispatchable green power.
Battery energy storage systems are being integrated at both grid and project levels, while the Production-Linked Incentive scheme, domestic content rules, and import duties are deepening India’s manufacturing base and reducing external dependence. The recalibration of GST and Approved List of Models and Manufacturers (ALMM) provisions, the ministry said, aligns fiscal and industrial policy with long-term goals of cost stability and quality assurance.
Transmission infrastructure has emerged as the “new frontier” in India’s energy transition, MNRE said. The Rs 2.4-lakh-crore transmission plan for 500 GW aims to connect renewable-rich states such as Rajasthan, Gujarat, and Ladakh with major demand centres, unlocking over 200 GW of renewable capacity once operational.
The government has already planned high-voltage direct current (HVDC) corridors to increase inter-regional transmission capacity from 120 GW at present to 143 GW by 2027 and 168 GW by 2032. Recent amendments to the CERC General Network Access Regulations, 2025 — introducing time-segmented access for “solar hours” and “non-solar hours” — will allow dynamic corridor sharing and greater transmission efficiency.
MNRE said India continues to attract global clean energy investment, with tariffs among the lowest worldwide and policy continuity ensuring investor confidence. International capital, it noted, is not exiting but repositioning toward integrated and storage-backed portfolios.
“The deeper story is one of evolution, not erosion,” the ministry said. “India’s clean energy transition is entering a phase where the core challenges are about integration, reliability, and scale efficiency.”
Virtual Power Purchase Agreements (VPPAs) and other market-based instruments are expected to accelerate renewable deployment by enabling corporate buyers to contract renewable power virtually, decoupled from physical delivery. These mechanisms, along with green-attribute trading and ancillary service markets, are being incorporated under the forthcoming Electricity (Amendment) Bill and CERC market regulations, with MNRE and the Ministry of Power providing enabling policy support.
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The ministry said India’s next phase of renewable growth will be propelled by hybrid and round-the-clock (RTC) projects across Rajasthan, Gujarat, and Karnataka, as well as offshore wind, pumped hydro storage, distributed solar under PM Suryaghar and PM-KUSUM, the National Green Hydrogen Mission, and the Green Energy Corridor Phase III.
“India’s renewable story has not lost momentum — it has gained maturity,” MNRE said. “After a decade of sprinting, the sector is learning to synchronise capacity with grid strength, local manufacturing, and financial stability to ensure that the next acceleration is faster and far more sustainable,” it added.
