India’s renewable energy transition continues to gain momentum, having reached a key milestone in June 2025 when more than 50 per cent of the country’s installed power generation capacity came from non-fossil fuel sources. As of June 2025, India’s total installed renewable energy capacity (excluding hydro) stood at 184 GW, up from 143 GW in March 2024. This 28 per cent increase was primarily led by 34 GW of new solar installations and 5.7 GW of wind power additions. The momentum in renewable energy infrastructure build-out continues on the back of policy incentives, clear targets and obligations, attractive cost economics and inflow of capital.
In line with these drivers, a number of renewable energy projects are currently under construction. The Central Electricity Authority’s (CEA) June 2025 report on under-construction renewable energy projects identifies over 560 projects currently being developed across the country, spanning solar, wind and hybrid. This development has been skewed until now, with nearly 90 GW of the upcoming capacity concentrated in just two states (Gujarat and Rajasthan), and predominantly comprising solar projects.
However, the situation is expected to change over the next few years as the gradual withdrawal of interstate transmission system (ISTS) waivers will lead to greater renewable energy power supply within states, thus driving the development of intra-state transmission systems. Further, the growing demand for firm and quality renewable power is leading to a greater deployment of hybrids and blended renewables integrated with energy storage. Thus, the future renewable energy pipeline is expected to have more energy storage hybrids especially considering the recent policy support for storage and the slew of auctions in this space.
This article provides an analysis of key trends in India’s under-construction renewable energy projects (drawing on insights from the CEA report), examines the challenges in project execution and outlines the way forward…
Source-wise and state-wise distribution of upcoming projects
Of the over 560 projects currently under development, solar energy is the clear leader, with over 340 projects, translating into a 61 per cent share. Under-construction solar projects have a combined capacity of over 100 GW, all slated for completion by 2031. Wind energy follows with 127 projects totalling approximately 24 GW, representing 22 per cent of the total under-construction pipeline. Hybrid projects represent a growing segment, with over 28 GW of capacity under construction, accounting for 17 per cent of the total pipeline.
Among the states with the highest under-construction renewable energy capacity, Rajasthan leads with a significant 50 GW of projects currently under way. Gujarat comes next with 39 GW. Karnataka holds the third position with over 17 GW. Madhya Pradesh and Maharashtra are also progressing steadily, with 12 GW and 10 GW respectively.
Distribution of project capacity
The under-construction projects are distributed across various capacity ranges. The highest number of projects, 170, falls in the 0-100 MW range, followed by 158 in the 200-300 MW category and 112 in the 100-200 MW range. The number of projects decreases as capacity increases, with 39 projects in the 300-400 MW range, 25 in the 400-500 MW range and 13 in the 500-600 MW range. In the higher-capacity brackets, there are six projects each in the 600-700 MW and 800-900 MW ranges, 11 in the 700-800 MW range and 10 in the 900-1,000 MW range. Additionally, there are 16 projects with capacities above 1,000 MW.
Strong pipeline through 2031, but concerns over project commissioning delays
In the near term, more than 160 projects with a combined capacity of about 37 GW are expected to be completed in 2025. The pipeline is likely to strengthen further in 2026, with about 154 projects aggregating 50 GW expected to be completed.
Beyond 2026, the project pipeline remains robust as well. Between 2027 and 2031, around 190 projects with a cumulative capacity of about 55 GW are anticipated to be completed. Aside from these, a number of projects that are at the tendering and planning stages will be added to the list before 2031.
All in all, over 300 projects are anticipated to be commissioned by the end of 2026, and another 190 are likely to be completed during the 2027-31 period.
While the pipeline seems healthy, there are several execution-related challenges. More than 70 projects with an aggregate capacity of about 12 GW, originally targeted for commissioning prior to 2025, continue to face delays. These include projects that were scheduled for completion in 2020, 2022, 2023 and 2024. These delayed projects are spread across multiple states, suggesting that the issues are linked to broader implementation bottlenecks rather than state-specific hurdles.
Moreover, approximately 30 projects scheduled for commissioning in 2025 are also expected to miss their deadlines. These delays highlight the need for strengthened project management frameworks, improved coordination among stakeholders and timely resolution of issues related to land, tariff approvals, signing of power sale agreements (PSAs) and power purchase agreements (PPAs), power evacuation and regulatory issues to ensure that the sector’s growth trajectory is maintained.
According to the CEA’s National Electricity Plan (NEP), renewable energy sources, excluding hydro, are expected to account for approximately 56 per cent of India’s total installed power capacity by 2031-32. This corresponds to a cumulative renewable capacity (excluding hydro) of about 507 GW out of the projected 900 GW of total power generation capacity. The NEP has outlined segment-wise targets of 364 GW of solar, 121 GW of wind, 15 GW of biomass and 5 GW of small hydro by 2031-32.
As mentioned earlier, India’s installed renewable energy capacity (excluding large hydro) stands at around 184 GW as of June 30, 2025. This comprises 116 GW of solar, 52 GW of wind, 11.6 GW of biopower (including bagasse, non-bagasse and waste-to-energy) and 5 GW of small hydro. To meet the NEP target of 507 GW by 2031-32, the country will need to add approximately 323 GW of capacity over the next seven years. This means that about 248 GW of solar, 69 GW of wind and 3.4 GW of biomass capacity will have to be added. Small hydro, having already reached 5 GW, has effectively achieved its target.
On an annualised basis, this translates into an average yearly installation of roughly 35 GW of solar, 9.8 GW of wind and 0.5 GW of biomass. In the near term, particularly for 2025 and 2026, a combined capacity of around 87 GW is expected to be completed across solar, wind and hybrid projects – 56 GW of solar, 13 GW of wind and 18 GW of hybrid. This translates into an average of 28 GW of standalone solar and 6.5 GW of standalone wind additions per year over the next two years. This is almost in line with the annual targets (if the annual hybrid capacity is also included in the calculation). However, the pace of solar and wind installations will need to be consistent beyond 2026 as well to align with the NEP target.
Challenges facing under-construction projects
Despite the impressive pipeline of projects under construction, India’s renewable energy sector faces several challenges that could impact the timely completion of these projects. The frequent delays and missed deadlines point to systemic issues such as land acquisition problems, transmission constraints, policy uncertainties, execution inefficiencies and delays in the signing of PSAs. These challenges have been raised not only by the CEA, but also during interviews and discussions with industry stakeholders.
Land acquisition remains one of the most significant bottlenecks, particularly for large-scale solar parks where community resistance and land-use conflicts can significantly delay project timelines. The process of securing land clearances, environmental approvals and local permissions often extends well beyond initial project schedules. Large-scale solar parks face resistance from local communities due to displacement concerns, land use conflicts and threats to agricultural livelihoods.
Transmission constraints represent another major challenge for upcoming renewable energy projects. India’s ISTS infrastructure has struggled to keep pace with the rapid growth of renewable energy capacity, resulting in grid congestion and curtailment issues. While transmission infrastructure can take around five years to be commissioned, a solar project can be commissioned in about one and a half years, leading to risks of revenue wastage for developers. The expiration of the ISTS charges waiver and the introduction of these charges in a phased manner will impact the financial viability of projects currently under construction.
Policy uncertainties and regulatory bottlenecks further complicate project execution. Frequent changes to policies, such as the Approved List of Models and Manufacturers (ALMM), introduction of the ALMM for solar cells, solar import duties, and open access charges and exemptions, can create market confusion and affect project planning. Weak coordination between central and state agencies often leads to inconsistent implementation of renewable energy programmes.
Grid readiness is another significant challenge. The country lacks sufficient energy storage solutions and flexible backup generation, which limits its ability to absorb variable renewable energy and ensure grid stability – a concern that will intensify once over 500 GW of non-fossil fuel capacity, much of it being intermittent (such as solar and wind), is integrated into the grid. The overreliance on imported materials such as lithium, cobalt, nickel and copper also exposes the sector to geopolitical risks and supply chain vulnerabilities, potentially impacting timelines for hybrid projects that will include storage components.
The growing share of hybrids reflects the market’s shift towards round-the-clock supply and higher utilisation of transmission and land assets. However, the development of hybrid projects faces several hurdles. Land availability in wind-rich areas is becoming increasingly constrained, and the need to co-locate solar and wind in specific geographies adds to the complexity. Additionally, developers are struggling with a lack of clarity on grid connectivity, open access charges and transmission planning for hybrid configurations.
Apart from these, the sector faces other key risks that can impact the project pipeline. According to the Institute for Energy Economics and Financial Analysis, and based on discussions with industry stakeholders, PPAs for more than 40 GW of renewable capacity have not yet been signed, while around 38.3 GW of projects were cancelled between 2020 and 2024. This mismatch between project development and actual power procurement undermines investor confidence and complicates project financing.
The availability of capital is key for consistent project development, with estimates suggesting that achieving the NEP targets will require annual financing to grow by 20 per cent annually, reaching $68 billion by 2032. Over this period, a total capital flow of $300 billion will be needed to keep India on track to meet its renewable energy commitments.
The success of the over 560 projects currently under construction will significantly influence India’s ability to achieve its 2030 targets. While the challenges are substantial, the scale of the pipeline and the commitment shown by both public as well as private sector developers offer strong grounds for optimism about India’s clean energy future.
