By: Shashank Sharma
Over the past year, India’s once-aspirational targets are now rapidly translating into on-ground achievements, surpassing the 200 GW of total capacity in 2024, along with registering some of the highest solar installations seen in the recent years like 10 GW of solar installations in the Q1 2024 itself. Our increasing focus on round-the-clock (RTC) and firm and dispatchable renewable energy (FDRE) contracts—supported by robust grid management—reflects a maturing industry poised for long-term stability.
This progress has not occurred in isolation. A series of government initiatives, combined with natural market dynamics, have played a pivotal role. Softer global module prices, for instance, have enabled the completion of previously stalled projects, resulting in a substantial surge in commissioned capacity. The government’s aggressive approach—assigning ambitious renewable targets to SECI, NHPC, and NTPC—has spurred tremendous action.
I believe that sustainability and economic growth form one of the great dichotomies of our era. To power our future sustainably, both must converge rather than collide. It is becoming evident that development and environmental stewardship are intrinsically linked; with the effects of climate change no longer a distant concern. In Delhi, for instance, we have seen stringent Graded Response Action Plan (GRAP) measures affect construction and other economic activities, revealing we can no longer ignore environmental concerns. This circular interplay—where development prompts environmental costs, which in turn necessitate halts or controls—is a stark reminder that transition to sustainable energy sources and development must go hand-in-hand.
As a fast–growing economy, India’s energy demand will only intensify. It presents a unique opportunity: never before have energy access and energy transition progressed at such a rapid pace. India stands at the forefront of this global shift, demonstrating how emerging economies can integrate climate objectives with development imperatives.
Our country’s digital economy and manufacturing ambitions are attracting global investments and technological innovations. While technology investments and manufacturing expansions are on the rise, they are also reshaping our energy landscape. More and more commercial and industrial sectors require reliable, 24/7 clean power.
While we aim to develop sustainably, we face the costs and complexities that inevitably accompany rapid expansion. Currently, for the green energy sector, it is essential that we focus on scaling storage solutions and ensuring stable, reliable supply chains, all of which demand substantial capital and concerted policy support. Battery storage is critical for achieving true RTC renewable supply, mitigating the inherent variability of solar and wind. To drive this, the Government is planning an initial mandate of a battery storage capacity amounting to 10% of the plant’s total renewable energy capacity. This is a great move, as without adequate storage, round-the-clock green power remains elusive.
Expanding our renewable footprint and making sure green energy is geographically accessible to all also requires significant investments in transmission infrastructure and creating a smart grid compatible with these energy storage solutions. As estimated by the Central Electricity Authority (CEA), the figure comes out to a whopping ₹9 Lacs Crores, reflecting the substantial cost of reinforcing and modernizing the transmission network.
Renewable energy is not just an abstract climate solution; it’s a practical necessity for ensuring cleaner air and a healthier environment. It is important, however, to recognize the challenges. The renewable energy manufacturing ecosystem in India remains under stress. While we strive for self-reliance, additional duties on components—such as glass and imposition of non-tariff barriers such as Approved List of Module Manufacturers (ALMM) on solar cells—could tighten supply chains at a time when the domestic solar industry needs to scale up.
While this strategic emphasis aims to foster long-term energy security and mitigate reliance on Chinese imports, it might impede domestic supply at a time when, already a considerable portion of India’s solar module production is exported, leaving domestic developers scrambling for basic components. Achieving the government’s ambitious target of 500 GW of non-fossil fuel capacity by 2030 will require a balanced approach. We must encourage domestic manufacturing to build a sustainable industrial base, but this must be harmonized with the pressing need to ensure adequate, affordable renewable equipment for domestic deployment.
Policy stability is another critical piece of the puzzle. For commercial and industrial consumers, policy unpredictability at the state level—from sudden changes in banking regulations to shifting incentives—undermines project economics. Renewable energy projects front-load nearly all their lifetime costs. Unlike conventional thermal plants that can ramp up or down based on fuel cost dynamics, a renewable project’s viability depends on stable, long-term policy frameworks. To ensure that India’s renewable energy goals are realized, states must balance the interests of both distribution companies (discoms) and end-consumers while ensuring uniformity in policy frameworks across regions. Hence, the need of the hour is to adopt the Green Energy Open Access Rules (GOAR) enabling guidelines and provide developers a clear runway of at least 5 to 10 years.
Then there’s the crucial element of energy storage solutions manufacturing. While we may have missed the initial window for establishing a strong domestic solar manufacturing ecosystem, we still have time to become a leader in energy storage technologies. Countries like China have invested heavily in R&D and manufacturing, creating robust supply chains. India must follow suit. Government-supported research, public-private partnerships, and targeted incentives for indigenous battery manufacturing can ensure we do not repeat the missed opportunities of the solar sector. Robust domestic manufacturing of energy storage systems will form the backbone of our round-the-clock renewable ambitions.
Looking ahead to 2025, we are on the cusp of a transformative phase. Building on the foundations laid in previous years, we anticipate significant advancements in energy storage, further cost reductions, and more thoughtful policy support. Hybrid projects—combining solar, wind, and storage—are expected to proliferate, delivering reliable, green power at scale. Steadily, India is aligning its energy ambitions with its economic trajectory, playing a critical role in the global fight against climate change and setting the stage for a truly sustainable future.
As we navigate these complexities, one thing is clear: India’s renewable energy journey exemplifies a remarkable balancing act between growth, sustainability, and long-term energy security. The coming years offer a unique opportunity to solidify this progress, ensuring clean energy drives India’s growth and environmental resilience for generations to come.
The author is Founder – Chairman & CEO, Sunsure Energy
Disclaimer: The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent those of The Indian Express Group or its employees.
