Marking a shift in India’s renewable-energy strategy from rapid capacity addition to deeper system integration, the Ministry of New and Renewable Energy (MNRE) has issued a major policy update. In a detailed statement, it said the country’s clean energy transition is now entering a phase where grid readiness, energy storage deployment, hybridisation and market-design reforms must advance in step with capacity growth, and described the current moderation in additions as “recalibration” rather than slowdown.
MNRE noted that India’s renewable energy capacity has expanded from under 35 GW in 2014 to over 197 GW, excluding large hydro projects. Over 40 GW of awarded projects are currently in advanced stages of securing Power Purchase Agreements (PPAs), Power Sale Agreements (PSA) or transmission connectivity. The ministry said the sector has reached a point where “capacity absorption”, not merely capacity addition, is the central need. It added that tenders linked to energy storage, peak-hour supply and Firm and Dispatchable Renewable Energy (FDRE) now dominate procurement, reflecting a deliberate shift toward more reliable renewable power.
The ministry emphasised that enforcement of Renewable Power Purchase Obligations (RPOs) by states and upgrading transmission systems for evacuation of power are immediate policy priorities before large new bids are issued. A major portion of the update concerns transmission policy. The government’s ₹2.4-lakh-crore transmission plan for 500 GW of non-fossil capacity, expansion of the Green Energy Corridors and new high-capacity lines from Rajasthan, Gujarat and Ladakh are expected to unlock more than 200 GW of renewable-energy potential.
MNRE highlighted the amendments to the Central Electricity Regulatory Commission (CERC) General Network Access (GNA) Regulations, 2025, which include time-segmented corridor access for ‘Solar Hours’ and ‘Non-solar Hours”, source flexibility, stricter connectivity norms and greater transparency at the substation level.
The ministry said commissioning timelines have been affected by global supply-chain disruptions, fluctuating module prices and financing constraints, though India continues to add 15–25 GW annually. Market-based instruments such as Virtual Power Purchase Agreements (VPPA), green-attribute trading and enhanced ancillary-service markets are expected to complement physical grid expansion.
Looking ahead, MNRE said the next phase of growth will be shaped by hybrid and round-the-clock projects, offshore wind, pumped-hydro storage, distributed solar under programmes such as PM-Surya Ghar and PM-KUSUM, as well as the National Green Hydrogen Mission. These, the ministry said, indicate that India’s renewable-energy transition is moving from expansion to long-term system integration.
