India targets 900 GW clean energy by 2035 amid grid challenges

India has announced a new target to reach 900 gigawatts of clean energy capacity by 2035, according to ETEnergyWorld Renewables. This goal encompasses solar, wind, hydropower, and nuclear energy sources.

The new objective represents a significant increase from the previous target of 500 gigawatts by 2030. Currently, India’s clean power capacity stands at just over 300 gigawatts.

Current Grid and Generation Mix

Government data indicates that while clean energy sources now account for 55% of India's installed capacity as of September, they generated only about a third of the country's electricity during the preceding three months. According to Ember, coal remained the dominant source of generation, producing approximately 71% of electricity in 2025.

Government data and analysis by Ember show that India curtailed solar generation sufficient to power 10 million homes over the past 16 months. Curtailment occurs when grid operators limit the output of power stations because the transmission network cannot absorb or transmit the electricity to consumers at that moment.

There is currently no established timeline for when electricity prices will be permitted to fluctuate based on real-time demand.

Infrastructure Investment and Plans

• The Indian government has sanctioned close to $20 billion for enhancing grid infrastructure and implementing battery storage systems.
• These funds are designated within the framework of the Green Energy Corridor initiative.
• The Green Energy Corridor strategy targets the integration of 135 gigawatts of renewable power by the year 2033.
• Ajay Shah, an economist at the XKDR Forum, observed: "So now in India you have two assets - not only do you have cheap labour, you also have cheap energy."
• It is still unclear whether the financial resources allocated to the Green Energy Corridor will be adequate to satisfy integration requirements.

Expert Analysis and Capacity Gaps

Nikit Abhyankar, a researcher at the India Energy and Climate Centre at the University of California, Berkeley, argues that the construction of physical infrastructure needs to match generation targets. Abhyankar noted that if the grid fails to expand in parallel, India will be unable to achieve this goal. He emphasized that a strong and inventive transmission network is essential for the country’s energy transition.

Researchers from Berkeley forecast that India needs 250 gigawatts of energy storage over the next ten years to manage the variability associated with renewable energy. At the same time, this team calculates that 35 gigawatts of coal capacity is presently being built.

Transmission Expansion and Coal Fleet Constraints

The Green Energy Corridor program explicitly requires the construction of thousands of kilometers of new transmission infrastructure to enable the cross-border flow of renewable power. Although the strategy targets the integration of 135 gigawatts of renewable capacity by 2033, experts doubt that this level of grid expansion will be adequate to satisfy wider system integration requirements.

Significant operational hurdles continue to affect the current coal fleet, with numerous power stations lacking the agility to quickly curtail output during peaks in renewable generation. This inflexibility makes grid management more difficult as the share of solar and wind power grows.

Neshwin Rodrigues, an analyst at Ember, noted that coal will likely stay a vital part of the energy mix for several years, especially until large-scale battery storage can consistently handle demand during periods without sunlight. Nikit Abhyankar from the Berkeley India Energy and Climate Centre cautioned that recently constructed coal facilities risk becoming stranded assets should the government achieve its renewable energy goals.

Ajay Shah of the XKDR Forum pointed to two regulatory obstacles that may deter renewable investment: mandates requiring businesses to pay elevated rates to cross-subsidize other users, and rules preventing power producers from selling directly to private entities. Shah contended that India must permit electricity prices to fluctuate according to supply and demand forces.

What to watch

Central Electricity Authority chair Ghanshyam Prasad stated earlier this month that India could need 150 gigawatts of additional coal-fired capacity by 2035.