Land, transmission infrastructure remain key bottlenecks for further growth in India's renewable energy: Report
New Delhi, May 28
Land availability, evacuation infrastructure and transmission approvals continue to remain major bottlenecks for India's renewable energy sector despite strong growth momentum, according to a report by YES Securities.
The report stated that India's renewable energy sector continues to witness strong structural growth driven by rising electricity demand, government decarbonisation targets, increasing corporate renewable adoption and large-scale investments across solar, wind, hybrid and storage infrastructure.
According to the report, policy support through Approved List of Models and Manufacturers (ALMM) regulations, domestic manufacturing incentives, transmission expansion and renewable procurement obligations is strengthening the long-term outlook for the sector.
The report added that increasing demand from industrial users, utilities, data centres and commercial consumers is accelerating renewable energy capacity additions across both Independent Power Producer (IPP) and Captive Power Plant (CPP) segments.
It further highlighted that emerging opportunities in battery energy storage systems (BESS), round-the-clock (RTC) power, floating solar, green hydrogen and energy trading are expected to play a larger role as renewable energy penetration increases across the power grid.
However, it stated that "land availability, evacuation infrastructure and transmission approvals continue to remain key execution bottlenecks, thereby favoring developers".
The report noted that these challenges are increasingly favouring larger and established renewable energy developers with stronger project execution capabilities.
Meanwhile, according to the Ministry of New and Renewable Energy (MNRE), India currently ranks third globally in renewable energy installed capacity.
China remains the global leader with renewable energy installed capacity of 2258.02 GW, followed by the United States at 467.92 GW, while India stands third with 250.52 GW.
The ministry data also showed that India's renewable energy installed capacity has increased 3.59 times since 2014. Renewable energy capacity rose from 76.38 GW in March 2014 to 274.68 GW in March 2026, registering an increase of 198.30 GW.
Solar energy capacity witnessed the sharpest growth during the period, increasing 53.28 times from 2.82 GW in March 2014 to 150.26 GW in March 2026. Wind energy installed capacity also increased 2.66 times from 21.04 GW in March 2014 to 56.09 GW in March 2026.
India's domestic manufacturing capabilities have also expanded significantly.
According to the ministry data, wind turbine manufacturing capacity increased from 10 GW in 2014 to around 24 GW as of March 31, 2026.
Solar module manufacturing capacity rose sharply from 2.3 GW in 2014 to around 172 GW as of March 31, 2026.
— ANI
Reader Comments
It's impressive that India is 3rd globally in renewable capacity! But I'm surprised transmission infrastructure is such a bottleneck. In California, we've had similar issues with getting permits for new transmission lines to connect solar farms. India's growth from 76 GW to 274 GW since 2014 is remarkable - 3.5x growth. The real test will be integrating these renewables with the grid efficiently. Battery storage seems like the missing piece.
The 53x growth in solar capacity is mind-blowing! From 2.8 GW to 150 GW in 12 years. But what about the discoms? If they can't take the power, all this capacity is useless. I live in UP and we still get power cuts in summer even with all this renewable addition. Need more investment in smart grids and substations. Also, the ALMM policy is good but implementation is patchy - many smaller players are struggling.
Key phrase that caught my eye: "favoring developers" - meaning big players like Adani Green and ReNew Power will get even more dominant. Small developers find it hard to get land and transmission approvals. Government should reserve some land specifically for MSMEs or new players in renewable energy. Also, why no mention of rooftop solar? That avoids land issues altogether. PM Surya Ghar scheme is great but slow rollout.
As someone who works in energy consulting in the UK, India's growth is fascinating. The 172 GW solar module manufacturing capacity is a huge shift from being import-dependent. But I'm curious about quality control - with such massive scale, how does India ensure these panels meet international standards? Also, the report mentions green hydrogen opportunities - that could really transform industrial decarbonization for India.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.