Electricity grid, energy storage readiness to support next phase of renewable energy growth: ICRA

### Simple Explanation ICRA says that **India’s renewable energy sector will continue to grow strongly**, but the next stage of growth will depend mainly on **power transmission and energy storage**. Renewable energy, including large hydro projects, may provide **more than 35% of India’s total electricity generation by 2029-30**, compared with 22% in 2024-25. There is already a strong pipeline of renewable projects. More than **150 GW of renewable energy projects were under construction as of June 30, 2026**. These projects can increase India’s renewable power capacity in the coming years. However, there are some challenges. **Transmission infrastructure has not grown as quickly as electricity generation capacity.** Because of this, some renewable projects face difficulties in sending their electricity to the grid, resulting in power curtailment. Another major issue is the delay in signing **Power Purchase Agreements (PPAs)**. Around **40–45 GW of renewable capacity was still waiting for PPAs as of April 2026**. Renewable-energy bidding has also slowed significantly: * **FY25:** 40.6 GW awarded * **FY26:** 14.7 GW awarded * **FY27 till August 10:** 4.7 GW awarded ICRA also says the industry is moving away from only normal **solar and wind projects** and increasingly focusing on **FDRE (Firm and Dispatchable Renewable Energy)** and **RTC (Round-the-Clock) power**. These projects need battery storage and other technologies to provide electricity when required, even when sunlight or wind is unavailable. ### In simple words: India has a **big renewable-energy opportunity**, but simply building solar and wind farms is not enough. India also needs **strong transmission networks and large-scale battery storage**. Therefore, companies working in **renewable energy, power transmission, grid infrastructure, batteries and energy storage** could benefit from this long-term growth. However, aggressive bidding and delays in PPAs could put pressure on companies' profits.