New Delhi: India’s renewable energy sector continues to witness rapid growth, but shortages of land, evacuation infrastructure and delays in transmission approvals remain major hurdles for further expansion, according to a report by YES Securities, ANI reported.
The report said rising electricity demand, government decarbonisation targets, growing corporate adoption of renewable power and large investments in solar, wind, hybrid and storage projects are driving strong long-term growth in the sector.
It added that policy measures such as Approved List of Models and Manufacturers (ALMM) regulations, domestic manufacturing incentives, transmission network expansion and renewable purchase obligations are strengthening the sector’s future outlook.
According to the report, increasing demand from industries, utilities, data centres and commercial consumers is accelerating renewable energy capacity additions in both Independent Power Producer (IPP) and Captive Power Plant (CPP) segments, ANI stated.
The report also highlighted emerging opportunities in battery energy storage systems, round-the-clock renewable power, floating solar projects, green hydrogen and energy trading as renewable energy penetration increases across the power grid.
However, it warned that land acquisition challenges, evacuation infrastructure shortages and delays in transmission approvals continue to affect project execution, giving an advantage to larger and more established developers with stronger implementation capabilities.
Meanwhile, data from the Ministry of New and Renewable Energy (MNRE) showed that India currently ranks third globally in installed renewable energy capacity.
China remains the world leader with renewable energy capacity of 2258.02 GW, followed by the United States at 467.92 GW, while India has reached 250.52 GW.
According to the ministry, India’s installed renewable energy capacity has grown 3.59 times since 2014, increasing from 76.38 GW in March 2014 to 274.68 GW in March 2026.
Solar energy recorded the sharpest growth during the period, with installed capacity rising from 2.82 GW in 2014 to 150.26 GW in 2026. Wind energy capacity also increased from 21.04 GW to 56.09 GW during the same period.
The report also noted a significant rise in domestic manufacturing capabilities. Wind turbine manufacturing capacity increased from 10 GW in 2014 to around 24 GW by March 2026, while solar module manufacturing capacity expanded sharply from 2.3 GW to nearly 172 GW during the same period.
