India has reached a major milestone in its transition to clean energy, with renewable sources briefly accounting for more than half of the country’s peak power demand this past July. However, this rapid expansion is being undermined by severe grid infrastructure deficits, resulting in substantial amounts of generated green electricity being wasted.
Solar, wind, hydro, and nuclear power collectively exceeded coal-based output for a short period, marking only the second time this has occurred, following a similar event a year prior. Sumant Sinha, CEO of ReNew Power, described the moment as evidence that renewable energy has moved from the periphery to a central role in India’s power system, although coal still supplies approximately 70% of average electricity due to its higher load factors.
The growth in installed capacity has been astonishing. A decade ago, India’s renewable capacity stood at a mere 4 gigawatts (GW). It has since surged to 300GW, representing 54% of the nation’s total 552GW installed capacity, achieving its targets five years ahead of schedule. Despite this progress, the build-out of transmission infrastructure has failed to keep pace with generation projects, creating a critical operational bottleneck.
Data from the energy think-tank Ember indicates that transmission constraints were responsible for nearly two-thirds of all renewable energy curtailment in the first quarter of 2026, totaling 300 gigawatt-hours (GWh). Approximately one in four inter-state transmission projects has faced delays exceeding one year. Sinha noted that while solar and wind farms can be constructed within 18 to 24 months, transmission lines require significantly more time due to land acquisition, regulatory approvals, and coordination across multiple agencies.
Vibhuti Garg of the Institute for Energy Economics and Financial Analysis attributed part of the problem to poor planning, noting that the grid could manage annual additions of 10-15GW but is struggling to cope with last year’s record addition of 51GW. The concentration of renewable projects in the north-western states of Gujarat and Rajasthan has further complicated the evacuation of power to other regions.
Battery storage was viewed as a potential quick fix to store excess energy for use during evening peaks, but the sector has stalled due to soaring battery prices, raw material shortages linked to the conflict in the Middle East, and a weakened Indian currency that has increased financing costs. Consequently, many planned storage projects have fallen through.
Financial constraints extend beyond storage. While India requires an estimated $400-500bn to meet its 500GW non-fossil target by 2030, about 83% of climate mitigation finance is currently sourced domestically. Sinha highlighted that emerging economies receive only around 15% of global clean-energy investment despite comprising two-thirds of the world’s population, calling for cheaper loans and currency guarantees from developed nations.
As the world’s third-largest emitter of greenhouse gases, India’s ability to manage this transition is vital for global climate goals. The International Energy Agency predicts an 80% increase in India’s electricity demand by 2035, driven by industrial expansion including data centres and chip manufacturing. Experts warn that closing the gaps in finance, transmission, and storage is essential to ensure India’s renewable growth translates into sustained decarbonization rather than continued waste.
Is it really feasible to build transmission lines fast enough for this pace? Land acquisition seems like a permanent bottleneck.
I didn’t realize battery storage costs had spiked so dramatically due to raw material shortages. That’s a huge missing piece.
The contrast between 300GW capacity and the inability to transmit it is staggering. Infrastructure must match ambition.