From Expansion to Integration, MNRE Marks the Next Phase of India's Renewable Growth

India’s renewable energy sector is transitioning from an era of rapid expansion to a new chapter focused on system strength, integration, and long-term stability, according to the Ministry of New and Renewable Energy (MNRE). 

The ministry emphasised that this shift marks the evolution of India’s clean energy story, from quantity to quality and from expansion to enduring integration, as the nation advances toward its target of 500 GW of non-fossil capacity by 2030.

From “Expansion” to “Absorption”

India’s renewable energy capacity has increased more than fivefold in the past decade, from under 35 GW in 2014 to over 197 GW today, excluding large hydroelectric projects. 

MNRE noted that while the earlier phase centred on capacity addition, the current stage prioritises grid integration, energy storage, hybridisation, and market reforms — the “true foundations” for a resilient renewable ecosystem. 

The current moderation in new capacity addition, it said, reflects system recalibration rather than slowdown, for future growth that is stable and dispatchable.

Policy Pivot Towards Firm Renewable Power

MNRE underscored a deliberate policy shift toward system design, with tenders increasingly focused on energy storage and peak power supply. 

Integration of Battery Energy Storage Systems (BESS) is gaining pace both at the grid and project levels. Simultaneously, domestic manufacturing is expanding under incentives such as the Production-Linked Incentive (PLI) scheme and the Approved List of Models and Manufacturers (ALMM), aimed at strengthening the value chain and reducing import dependency.

The ministry described recent fiscal and regulatory changes, including adjustments to GST and ALMM norms, as strategic steps toward cost stability and quality enhancement in solar manufacturing. 

Viability gap-funded storage projects and emerging storage mandates are further catalysing India’s move toward firm renewable energy supply.

Transmission Infrastructure: A New Frontier

An INR 2.4 lakh crore transmission plan for 500 GW capacity is at the heart of India’s grid modernisation efforts. 

Through the Green Energy Corridors and high-capacity lines linking Rajasthan, Gujarat, and Ladakh with major demand centres, the government expects to unlock more than 200 GW of additional renewable potential. Inter-regional transmission capacity will be expanded from 120 GW to 143 GW by 2027, and to 168 GW by 2032.

Recent amendments to the CERC General Network Access (GNA) Regulations, 2025, introduce time-segmented access, distinguishing solar-hours and non-solar-hours, to optimise corridor usage. These reforms aim to relieve congestion, enable source flexibility, and fast-track stranded projects across renewable-rich regions.

Even amid global uncertainties, tariffs remain among the world’s lowest, and international investors are increasingly turning toward storage-backed and hybrid portfolios, the ministry said.

Integration, Reliability, and Market Reform

India’s renewable growth story, the ministry noted, is evolving from rapid scale-up to deep integration with market-based mechanisms. 

Instruments like Virtual Power Purchase Agreements (VPPAs) and green attribute trading are expected to enable corporate participation and ensure flexible, demand-driven deployment. 

These are being strategically embedded within upcoming electricity market reforms under the MNRE and Ministry of Power frameworks.

40+ GW Pipeline

Despite global headwinds and supply-chain disruptions, India continues to add between 15 and 25 GW of new renewable capacity each year, which is among the fastest rates worldwide, the ministry noted. 

Currently, over 40 GW of projects are in advanced stages of securing contracts or transmission connectivity, highlighting a strong investment pipeline. 

According to the ministry, renewable capacity growth now occurs through multiple channels, with central and state bids totalling over 9 GW this year and commercial and industrial consumers expected to add nearly 6 GW in 2025.