India’s RE deal value surges 5-fold to $2 bn in 2025; focus shifts to storage, grids: Joshi

“As we move towards 500 GW, the next phase will require deeper integration of generation, storage and transmission,” Joshi said while addressing the CII Annual Business Summit 2026.

“Grid resilience, battery storage, hybrid renewable projects, pumped hydro, offshore wind and round-the-clock clean power solutions will become more important,” he said.

Joshi said India’s renewable energy transition was increasingly becoming central to industrial competitiveness, export growth and long-term energy security amid tightening global climate-linked trade regulations.

“Today, energy policy is industrial policy. Climate policy has become trade policy. And clean technology capability is national capability,” the minister said.

According to Joshi, India recorded the fastest growth in renewable energy capacity additions among major economies in 2025, citing International Energy Agency (IEA) estimates.

“RE deal values increased more than 5-times to nearly $2 billion during the last year,” Joshi said quoting Fieldfisher, adding that it reflects strong market confidence in India’s clean energy growth story. 

India is currently the world’s second-largest solar market and ranks third globally in overall renewable energy capacity, he said.

The minister said India’s non-fossil fuel capacity has increased from 81 GW to 288 GW over the past decade, registering growth of 256%.

Solar power capacity surged from 2.8 GW to 155 GW during the same period, while wind energy capacity increased from 21 GW to 56.4 GW.

Domestic solar module manufacturing capacity expanded from 2 GW to 172 GW, while solar cell manufacturing capacity rose from zero to 29 GW.

Joshi said renewable energy had also become critical for managing rising electricity demand and strengthening grid stability.

“RE played a critical role in meeting India’s record peak power demand, with nearly one-third of the all-time high demand of 256 GW being met through renewable energy last month,” he said.

The minister asserted that India’s target of achieving 500 GW of non-fossil fuel capacity by 2030 was now “within reach”.

“At a time when global renewable energy investments declined, India stood out by continuing to attract strong investment flows,” Joshi said.

He said India’s renewable energy transition was now deeply linked to manufacturing competitiveness as global markets increasingly impose sustainability-linked trade measures such as the European Union’s Carbon Border Adjustment Mechanism (CBAM).

“In the coming years, exporters who rely on carbon-intensive production systems will face increasing cost pressures and market barriers,” he said.

Joshi said the government had introduced multiple reforms to improve policy certainty, strengthen domestic manufacturing and support long-term investments.

These include notification of the Wind Renewable Consumption Obligation trajectory up to 2029-30, expansion of the Approved List of Models and Manufacturers (ALMM) framework to include ingots and wafers, and introduction of a standardised 10-year warranty framework for solar PV modules.

The government has also launched the Renewable Energy Equipment Import Monitoring System and reduced GST on renewable energy devices and components from 12% to 5%, he said.

Basic Customs Duty exemptions on specified capital goods required for solar cell and module manufacturing and exemptions for lithium-ion battery storage equipment have also been introduced to support domestic manufacturing ecosystems.

The minister said affordable clean energy would increasingly determine competitiveness across sectors such as steel, aluminium, chemicals, automotive, textiles and advanced manufacturing.

“Green hydrogen and renewable-powered industrial systems will shape export opportunities in the global economy,” he said.