Green energy capacity addition on fast track; grid hurdles, PPA delays pose risks

INDIA MADE FURTHER headway in the renewable energy (RE) sector in the past year, with total capacity reaching 262.7 gigawatt (GW) as of November 2025. That is more than half of the total installed electricity generation capacity.

- ARUNIMA BHARADWAJ

During the April-November period, the country added 34.6 GW of non-fossil fuel energy. However, key challenges including delay in signing of power purchase agreements (PPAs) have resulted in up to 40 GW of stranded RE capacity.

To achieve the target of 500 GWnon-fossil fuel capacity, the government has adopted a multifaceted strategy. Apart from rapid RE capacity addition, it includes streamlining the supply chain, bringing in hybrid and storage solutions, and strengthening the domestic production of raw materials.

However, even as meeting peak demand looks a lot easier now than a couple of years ago, grid integration of RE remains a critical challenge, necessitating sophisticated grid management systems and enhanced forecasting capabilities.

"This year has demonstrated encouraging momentum for India's clean-energy shift, but the sector now needs a few practical policy steps to turn this momentum into bankable, on-ground projects. Long-term demand visibility, smoother financing and greater clarity on storage economics remain critical gaps for developers," said Raaja Kanwar, chairman & managing director, Apollo International Group.

Major capacity additions were bolstered by solar power projects which stood at 132.85 GW as of November, data from the ministry of new and renewable energy (MNRE) showed.

"The year 2025 has been a defining year for India's solar journey, one that reflects both remarkable progress and important inflection points. The country's rapid strides in clean energy adoption, rooftop solar penetration, and storage-linked projects have strengthened its position as a global renewable powerhouse. At the same time, the year reminded us that ambitious capacity expansion must be balanced with calibrated demand, robust export opportunities and long-term policy continuity," said Prashant Mathur, CEO, Saatvik Green Energy.