At the COP26 Summit in Glasgow, India presented its ambitious Panchamrit vision, outlining a robust strategy for transitioning to renewable energy. The plan is to elevate non-fossil energy capacity to 500 GW by 2030, with a commitment to derive 50% of cumulative electric power capacity from non-fossil resources by the decade’s end. This initiative is part of India’s updated Nationally Determined Contribution framework, aimed at positioning the country as a global leader in clean energy.
India’s Strategic Energy Shift
India’s approach involves a structural shift from traditional thermal energy to a diversified renewable portfolio. The National Generation Adequacy Plan highlights a transition that balances reliability, cost-effectiveness, and sustainability.
Leading Renewable Energy Sources
Solar Photovoltaic (PV): Solar energy is at the forefront, significantly lowering photovoltaic technology costs and expanding capacity to 140.60 GW as of January 31, 2026. Solar energy meets substantial demand during daylight.
Wind Energy: Wind power plays a crucial role, especially during monsoon seasons, with a current capacity of 54.65 GW. It complements solar energy by meeting nighttime and evening demands.
Green Hydrogen Mission: The National Green Hydrogen Mission, with an investment of ₹19,744 crore, aims to extend renewable efforts into hard-to-abate sectors like steel and heavy transport. Despite its current limited deployment, green hydrogen is crucial for future system design.
Large Hydroelectric Power: With a capacity of 51.16 GW, large-scale hydroelectric power provides essential grid-balancing capabilities and is a significant component of India’s clean energy strategy.
Biomass and Small Hydro: These technologies, including biomass-to-energy and small hydro projects, offer geographic and technological diversification with a capacity of 16.8 GW.
Firm Dispatchable Renewable Energy (FDRE)
FDRE represents a sophisticated approach to eliminating the intermittency of solar and wind power. By integrating energy storage solutions, FDRE systems provide reliable, scheduled electricity, akin to traditional thermal plants. This integration is vital for reaching 500 GW of non-fossil fuel capacity by 2030.
The regulatory environment, including the Electricity Act, 2003, supports FDRE, mandating State Electricity Regulatory Commissions to promote renewable energy. However, challenges such as tariff structuring and storage costs persist, requiring express curtailment compensation clauses in Power Purchase Agreements.
The Role of Energy Storage Systems (ESS)
Energy Storage Systems are crucial for maintaining grid stability, especially as renewable energy penetration grows. India uses Hydro Pumped Storage Plants (PSP) and Battery Energy Storage Systems (BESS) to manage demand and ensure resilience. PSP projects, with a capacity of 7.2 GW, offer long-duration storage, while BESS provides high flexibility with a capacity of 275.85 MW / 791.8 MWh.
Conclusion: Building a Sustainable Future
India’s renewable trajectory is a testament to its commitment to dismantling carbon dependency. The strategic introduction of FDRE and energy storage solutions underscores a deliberate policy approach to creating a resilient energy matrix. The integration of Green Hydrogen into the national mission framework further highlights India’s intent to decarbonize industrial sectors.
This transformation is supported by an evolving legal and regulatory framework that manages risk, directs obligations, and attracts investment. Despite past challenges, India continues to refine its approach through legislative reforms and institutional innovations, paving the way for a sustainable energy future.
About the Authors: Yashodhara Burmon Roy, Rucha Prabhu, and Prateek Singh are legal experts at Hammurabi & Solomon Partners.
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the views of Bar & Bench.
