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4mo ago

India’s Renewable Bids Plunge to 5.8 GW in FY26 to Date, ICRA Cites Transmission Strains

ICRA says transmission bottlenecks and curtailment risks are deterring new bids and slowing PPA signings.

The agency’s estimates show that the share of generation from the renewable energy capacity, including large hydro, is expected to cross 35% by FY2030 from 22.1% in FY2025.

Overview

  • Only 5.8 GW of renewable projects were awarded in April–November FY26, down from 47.3 GW in FY24 and 40.6 GW in FY25, according to ICRA.
  • Industry checks cited by ICRA indicate about 40–45 GW of awarded capacity still lacks signed power purchase agreements.
  • ICRA links the slowdown to execution risks around transmission connectivity and notes reported solar curtailments in Rajasthan without compensation provisions in PPAs.
  • Policy support centers on storage, with viability gap funding and transmission-charge waivers for BESS through 2028 and more than 20 GWh of standalone BESS awards since April 2024.
  • ICRA projects renewables’ generation share rising to above 35% by FY2030, but says progress depends on timely grid upgrades, PPA finalization, and faster storage deployment to reach the 45–50 GW annual addition needed.