The moment has come for reliable renewable power

Budget could push renewable energy round-the-clock to the centre of India’s power strategy

- Aparna Roy

Budget 2026 must recognise that the success of the energy transition will be judged not by megawatts installed, but by megawatts delivered.

(HT ARCHIVE)

Budget 2026 will be a decisive moment for India’s energy transition and the Viksit Bharat 2047 goal.

State utilities and public sector buyers are expected to sign long-term power purchase agreements that will shape India’s electricity mix — and public finances — for the next two decades. These contracts, often running for 20-25 years, will determine whether India's future power system remains anchored to coal or pivots towards clean, reliable alternatives.

This inflection point comes when India’s renewable energy story is both impressive and incomplete. Installed renewable capacity has crossed 260 GW, and non-fossil sources now account for over half of total installed power capacity, well ahead of the country’s 2030 commitment. Yet, India’s past energy budgets, through public spending and policy support, prioritised capacity creation over system reliability. Despite rapid renewable growth, coal still dominates electricity generation during evening and nighttime peak hours, when demand surges. Grid congestion, curtailment and rising variability are already imposing hidden costs on the power system, even as electricity demand is projected to grow at 6-7% annually through the next decade. Faced with the political and economic risk of power shortages, states are increasingly tempted to fall back on new coal-based procurement as the “safe” option.

In the absence of firm and dispatchable clean power, India risks locking itself into a paradox where renewable energy grows on paper, but coal remains indispensable in practice. Renewable energy round-the-clock (RE-RTC) must move to the centre of India’s power strategy.