Archive · 20 Nov 2025
Renewable Energy Capacity Bids Fall Sharply in FY26
India's renewable energy expansion is facing challenges.
Only a small amount of new projects have been approved this year, which is much less than the target.
This is because there are worries about whether the power grid can handle all the new renewable energy.
Some solar power plants in Rajasthan have had to stop working during the day because of this.
However, battery storage systems are being used more to help keep the power grid stable.
Only 5.8 GW of new renewable energy capacity awarded in 8 months of FY2026
Target for FY2026 is 45-50 GW
Transmission connectivity concerns hinder project execution
Grid curtailments in Rajasthan affect solar assets
Battery Energy Storage Systems (BESS) emerge as grid stability enabler
- Who
- ICRA, Central nodal agencies, state discoms
- What
- Faced challenges in renewable energy capacity bids and grid stability
- When
- FY2026 (April 2025 to March 2026)
- Where
- India, particularly Rajasthan
- Why
- Transmission connectivity concerns and grid stability issues
Renewable Energy Advocates
Grid Stability Concerns
RE Targets
Renewable Energy Advocates
Urge for increased RE capacity to meet 2030 targets
Grid Stability Concerns
Worry about grid stability with increased RE penetration
Transmission Connectivity
Renewable Energy Advocates
Push for improved infrastructure to support RE growth
Grid Stability Concerns
Caution against overloading existing transmission lines
- Target RE capacity for FY2026
- 45-50 GW
- RE capacity awarded in 8M FY2026
- 5.8 GW
- RE share in generation by FY2030
- 35%
- Incremental RE capacity addition (FY2025-FY2030)
- 200 GW
- BESS capacity awarded (April 2024-Oct 2025)
- Over 20 GWh