NEW DELHI: India’s renewable energy sector continues to grow rapidly, but challenges such as high project costs, delays in land acquisition, and limited grid capacity need to be addressed, according to the Economic Survey released on Friday.
The survey suggests that innovative financing solutions and efficient project execution can help overcome these hurdles. It also highlights that large-scale adoption of technologies like Battery Energy Storage Systems (BESS) and Pumped Storage Hydropower (PSP) can stabilize the grid, manage peak electricity demand, and make renewable energy supply more reliable, supporting India’s transition to a clean, secure, and resilient power system.
The survey notes that India’s energy landscape is undergoing a structural transformation, with renewable energy now constituting around 49.83% of the total installed power generation capacity as of 30 November 2025. The country maintains a dominant global presence, ranking third in overall renewable energy capacity and installed solar capacity, and fourth in installed wind capacity. Total renewable energy capacity has more than tripled over the last decade, rising from 76.38 GW in March 2014 to 253.96 GW by November 2025. This substantial growth reflects the effectiveness of national renewable energy policies, large-scale project execution, and strong private sector participation in advancing India’s clean energy transition.
The first eight months of FY26 (up to November 2025) recorded a historic addition of 34.56 GW—the largest ever annual increase in non-fossil capacity. This expansion was led by solar energy, which contributed 27.20 GW, followed by wind (3.95 GW), hydro (2.68 GW), bio-power (0.03 GW), and nuclear (0.70 GW).