India Shifts Renewable Focus from Capacity Growth to System Strength to Achieve 500 GW Non-Fossil Target by 2030

India’s renewable energy sector is entering a transformative phase, moving beyond rapid capacity expansion toward system integration, stability, and resilience, the Ministry of New and Renewable Energy (MNRE) has highlighted. This transition is aimed at supporting the country’s ambitious goal of achieving 500 GW of non-fossil energy capacity by 2030.

Over the past decade, India’s renewable energy capacity has grown from under 35 GW in 2014 to over 197 GW (excluding large hydro). With this exponential growth, policymakers are now focusing on the next challenge: absorbing capacity into the grid, ensuring dispatchable, reliable, and sustainable renewable power.

MNRE emphasizes that India’s growth remains among the fastest in the world, driven by multiple pathways including central and state-led renewable bids, corporate procurement, and commercial and industrial adoption. In 2025 alone, central agencies conducted 5.6 GW of bids, state agencies 3.5 GW, and commercial and industrial consumers are expected to add nearly 6 GW.

Policy and Market Reforms
To support system integration, India is pivoting toward hybrid and storage-backed projects, firm power tenders, and domestic manufacturing of solar modules and storage systems under schemes such as PLI, ALMM, PM KUSUM, and PM Suryaghar. Policy reforms include recalibration of GST structures, domestic content incentives, and financial mechanisms for battery storage deployment.

Transmission infrastructure is also being upgraded under the ₹2.4 lakh crore Transmission Plan for 500 GW, linking renewable-rich states such as Rajasthan, Gujarat, and Ladakh to demand centres. High-voltage DC corridors and Green Energy Corridors Phase III are expected to unlock over 200 GW of new renewable capacity. Amendments to CERC General Network Access Regulations, 2025—including time-segmented access and stricter connectivity norms—are set to ease congestion and improve grid utilisation.

Investment and Market Outlook
Despite short-term delays due to supply chain disruptions and financing conditions, India remains a key destination for clean energy investment, with low tariffs and strong demand growth attracting domestic and international capital. Virtual Power Purchase Agreements (VPPAs) and market-based instruments are increasingly enabling corporate and institutional participation, enhancing price stability and stimulating private sector investment.

Next Phase of Growth
The upcoming phase emphasizes strategic endurance rather than speed. Key initiatives include:

• Large hybrid and round-the-clock (RTC) projects in Rajasthan, Gujarat, and Karnataka
• Offshore wind and pumped hydro storage
• Distributed solar and agrovoltaic projects under PM Suryaghar and PM KUSUM
• National Green Hydrogen Mission linking renewables with industrial decarbonisation

MNRE underlines that India’s renewable energy transition is now about institutional durability, grid integration, and financial stability, laying the foundation for sustainable acceleration in the coming years.