In the last decade, India’s green energy capacity has grown three-fold. The capacity which stood at 75.52 gigawatts in March 2014, has now soared to 232 gigawatts, says a PTI report quoting official sources.

During this period, India’s solar energy capacity saw an unprecedented forty-fold growth, surging from less than three gigawatts to 108 gigawatts. Wind energy capacity also more than doubled from 21 gigawatts to 51 gigawatts.

This surge in green energy capacity is already reducing pressure on India’s thermal energy sources. According to a report by the Centre for Research on Energy and Clean Air or CREA, India’s peak power demand can now be met without using the full coal-based capacity as contribution of renewables has increased significantly.

To illustrate this, the report cites the data from May 30, 2024. On that day India’s power demand hit a peak of 250 gigawatts during solar hours. Of this, 188 gigawatts was supplied using thermal capacity that was online - the remainder of thermal capacity was offline for maintenance or forced outages.

That’s when solar generation contributed over 60 gigawatts, demonstrating the rising contribution of renewable energy in meeting peak demand.

Now, all stakeholders look at this as great news. Because more renewable energy certainly means less air pollution and increasingly lower costs.

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However, this surge has led to a different set of challenges. A report by IFRI notes that this green transition is revealing significant vulnerabilities in the national grid.

First, solar and wind output fluctuates with weather and time of day, causing periods of both surplus and deficit. This variability stresses grid stability, especially given India’s narrow frequency band, where even minor deviations can trigger instability or outages.

The second challenge is transmission bottlenecks: The best renewable resources are in states like Rajasthan, Gujarat, and Tamil Nadu, but the highest demand is in states far away. The transmission network often cannot move power efficiently. As a result, available renewable energy is wasted because it cannot reach consumers.

India’s energy storage infrastructure also remains severely underdeveloped, with less than five gigawatts of pumped hydro storage and a mere 219 megawatt-hours of battery storage.

So, how should India tackle these challenges? Experts say the answer lies in massive grid modernisation with an increased focus on battery storage. They also bat for grid expansion, with new transmission lines, substations and special corridors.

Some experts also bat for dynamic power pricing, which will encourage users, especially the commercial ones, to consume power during non-peak hours. The stakeholders also want policy and regulatory reforms to speed up these solutions.

In short, while India’s green energy boom is remarkable, the path ahead demands smart infrastructure upgrades and smart policies to make this transition sustainable and resilient.

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renewable energy

The double-edged sword of India’s renewable energy surge

India's Renewable Energy Targets 2030: Is The Asian Powerhouse On Track?