India’s Renewable Energy Share Set to Cross 35% by 2030, but Grid and Storage Challenges Remain
August 27, 2026
India’s renewable-energy transition is expected to reach another major milestone by the end of the decade.
According to ICRA, renewable energy, including large hydropower, is expected to contribute more than 35% of India’s total electricity generation by 2029-30, up from around 22% in 2024-25. The growth outlook is supported by a strong project pipeline, with more than 150 GW of renewable-energy projects under construction as of June 30, 2026.
However, the next phase of India’s renewable-energy growth will depend on more than simply adding solar and wind capacity.
ICRA has highlighted the gap between renewable-energy capacity additions and the expansion of transmission infrastructure.
According to the analysis, delays in transmission development are contributing to grid curtailment, particularly for projects operating under temporary General Network Access, or T-GNA. Around 37% of the capacity at impacted substations across northern, western and southern India operates under T-GNA, with some projects facing curtailment of 30% to 50% during solar-generation hours, according to the report.
The challenge is also reflected in recent reports of renewable projects experiencing financial losses because electricity generation cannot always be transmitted through the available grid infrastructure.
India awarded 40.6 GW of renewable-energy capacity in 2024-25, but bidding activity declined to 14.7 GW in 2025-26. As of August 10, 2026, only 4.7 GW had been awarded in the current financial year, according to the SolarQuarter report citing ICRA.
The volume of unsigned PPAs also remains significant, at approximately 40–45 GW as of April 2026, highlighting the importance of faster project contracting and execution.
ICRA has consistently identified transmission availability and delays in PPA signing as important execution risks for the renewable-energy sector.
As solar and wind contribute a larger share of electricity generation, energy storage is expected to become a critical part of India’s power system.
The total awarded Battery Energy Storage System capacity, including operational and under-construction projects, had reached approximately 90 GWh by June 2026, according to the report. Falling battery costs, viability gap funding and transmission-charge waivers have supported the rapid growth of storage projects.
At the same time, the renewable-energy market is gradually shifting away from standalone solar and wind projects towards firm and dispatchable renewable energy and round-the-clock power solutions.
This shift reflects a broader transformation in India’s energy sector.
The focus is no longer only on how much renewable capacity can be installed.
The bigger question is whether renewable electricity can be transmitted, stored and delivered when consumers need it.
India’s renewable-energy pipeline remains strong, and policy support, competitive tariffs and growing demand from commercial and industrial consumers continue to support the sector’s long-term outlook.
But the next stage of the energy transition will require renewable generation, transmission infrastructure, energy storage and power-market mechanisms to develop together.
India has built the momentum for renewable-energy growth. The next challenge is building the infrastructure that allows this clean energy to reach the grid reliably and at scale.
