India’s renewable energy sector achieved a significant milestone in 2025, with record capacity additions of 44.5 GW, nearly doubling annual additions. This shift from “energy transition” to “energy acceleration” has been driven by structural changes, including deeper domestic manufacturing and a clearer focus on delivering reliable power. However, industry leaders warn that grid readiness, storage deployment, and system-level planning are struggling to keep pace, risking bottlenecks in the years ahead.
The current energy storage deployment in India remains far below projected national needs, with a cumulative installed capacity of just 490 MWh as of June 2025. The National Electricity Plan estimates storage requirements of 82.37 GWh by 2026-27 and 411.4 GWh by 2031-32, driven by both pumped storage projects and battery energy storage systems. This stark mismatch highlights the urgency for faster project deployment and stronger policy and investment support.
Despite these challenges, experts agree that 2025 was a breakthrough year for India’s renewable energy sector, with a focus on delivering scale and reliability. The growing focus on hybrid, round-the-clock, and storage-linked tenders signals a market that values dispatchability and grid performance, rather than just installed capacity. Domestic solar module and cell manufacturing have moved from capacity announcements to consistent, quality-driven output, enabling predictable execution of large project pipelines.
However, grid stability and storage remain the sector’s most pressing challenges. Experts caution that renewable capacity is still running ahead of grid readiness, and evacuation infrastructure, storage financing, and grid upgrades are critical areas that need attention. The transmission side also faces challenges, with delays due to right-of-way issues and forest clearances slowing alignment between generation and evacuation capacity.
Looking ahead, experts emphasize that sustaining acceleration between 2026 and 2030 will depend less on how fast capacity is added and more on how well the system performs. This means faster approvals, deeper transmission and storage integration, standardized financing frameworks, and reforms that allow discoms to procure flexibility rather than just energy. The policy direction has shifted from intent signaling to throughput building, and whether that translates into durable acceleration will hinge on closing the gap between generation, evacuation, and flexibility.
In conclusion, India’s renewable energy sector has made significant progress in 2025, but the harder task now is ensuring that the grid, storage, and capital systems are ready to carry that momentum forward. The focus must shift from adding capacity to delivering reliable power, and the government must provide stronger policy and investment support to bridge the gap between current capacity and future demand. With the right policies and investments in place, India can achieve its renewable energy targets and become a leader in the global clean energy transition.