India's renewable energy growth has moved to a new level. The government now wants to make sure that the clean energy being made fits well into the national power system. This means building stronger power lines, using better storage systems, and making it easier for electricity producers and buyers to work together.
The Ministry of New and Renewable Energy (MNRE) has started following a case-by-case approach for renewable energy bids handled by Renewable Energy Implementing Agencies (REIAs). This new strategy aims to balance the needs of developers, DISCOMs, and the national grid, making the system more stable and efficient.
India's progress in renewable energy over the last decade has been exceptional. The installed capacity has increased from 35 GW in 2014 to 197 GW in 2025, excluding large hydro projects. This growth has positioned India among the world's leading clean energy nations.
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No Blanket Cancellation of Renewable Energy Projects
The government has assured that there will be no mass cancellations of awarded renewable energy projects. Instead, each case will be reviewed separately. As of September 2025, REIAs have issued Letters of Award (LoAs) for 43,942 MW of projects that are yet to finalize Power Sale Agreements (PSAs).
Since April 2023, REIAs have signed PSAs for 24,928 MW of capacity, showing continuous progress. Agencies are now carrying out due diligence to categorize projects based on their chances of securing PSAs. Only those with little or no chance of progressing will be cancelled, and even then, only after exploring every possible option.
The government has also clarified that fears of stranded investments are misplaced, as major spending begins only after Power Purchase Agreements (PPAs) are signed. Any investment made in land or connectivity can still be used for other renewable projects in the future.
Focus Shifts toward Grid Strength and Energy Storage
India is now focusing on making its power grid stronger and adding more energy storage. Power companies are choosing new projects that mix solar power with storage instead of only solar or wind. These new projects can give steady electricity even when demand is high, making them cheaper and easier to use. As storage costs are falling, these systems are becoming a smart choice for both power makers and users.
To ensure steady progress, the government has also asked states to follow the Renewable Consumption Obligation (RCO) as per the Energy Conservation Act. This will help ensure that renewable energy is used widely and efficiently across the country.
Transmission Network Expansion and GNA Reforms
India is investing heavily to make the grid ready for higher renewable energy inflow. The ₹2.4 lakh crore transmission expansion plan aims to open renewable corridors, reduce congestion, and connect renewable-rich regions to demand centers.
The new General Network Access (GNA) reforms are also being implemented to make power transfer across states faster and smoother. These steps will unlock more capacity, prevent bottlenecks, and strengthen grid reliability. This large-scale transmission reform supports India's plan to reach 500 GW of renewable energy capacity in the coming years.
Strong Growth, Steady Investments, and Future Outlook
Despite global challenges like supply chain disruptions and high financing costs, India's renewable energy sector continues to grow rapidly. The country added 29 GW of renewable capacity in FY 2024–25 and 25 GW more in the first half of FY 2025–26.
Investors remain confident in India's clean energy goals. The energy market in India is now moving towards renewable projects that include storage and provide steady power for a long time. This new stage is not just about adding more projects but about making them better and stronger. The focus is on clean energy that works well with the grid, supports local manufacturing, and stays financially stable, helping the country get reliable power for the future.
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