India expands renewable capacity amid grid integration challenges

India is experiencing a rapid expansion of its renewable energy capacity, though significant grid integration challenges remain. As of July 2026, the country’s non-fossil fuel energy capacity exceeded 300 gigawatts, accounting for more than half of its total installed capacity. India currently ranks third globally in installed renewable energy, having added a record 55 gigawatts of clean capacity during the 2025–26 financial year.

Despite this growth, the transition faces operational hurdles. In July and August 2026, India curtailed 1.835 billion units of renewable electricity—primarily solar and wind—because transmission networks could not safely absorb the excess generation. While renewables make up a large portion of installed capacity, they currently produce less than one-third of the electricity consumed. This discrepancy is driven by the mismatch between peak solar production in the afternoon and peak electricity demand in the evening.

To bridge this gap, India is working to expand its storage and transmission networks. Battery storage capacity stood at approximately 9.1 gigawatt-hours by the end of the recent quarter, with further capacity expected to be commissioned by late 2026. Until these infrastructure improvements are complete, coal continues to serve as the primary source for reliable electricity, supplying roughly 66% of the country’s total power.