India Targets Fourfold Solar and Threefold Wind Expansion by 2035, Adviser Says

India is preparing for a major expansion of its renewable energy capacity, with solar power expected to grow fourfold and wind energy projected to triple by the mid-2030s, according to a senior adviser to the country’s power ministry. The targets underline the scale of transformation required to meet rising electricity demand while advancing national climate commitments.

The expansion comes as India, the world’s third-largest emitter of greenhouse gases, faces a dual challenge. On one hand, it must support rapid economic growth and electrification across sectors such as industry, transport, and residential consumption. On the other hand, it is under increasing pressure to reduce emissions intensity and accelerate its transition toward low-carbon energy systems.

Rapid Growth in Renewable Capacity

India has already made significant progress in renewable deployment over the past decade, particularly in solar energy. Installed solar capacity has surged due to falling technology costs, supportive government policies, and competitive auction mechanisms. Wind energy has also expanded, though at a slower pace in recent years.

The new projections signal a renewed push to scale both technologies. Quadrupling solar capacity would require sustained investment in utility-scale solar farms as well as distributed generation, including rooftop installations. Meanwhile, tripling wind capacity would likely depend on both onshore expansion and the gradual development of offshore wind projects, an area where India is still in early stages.

This growth trajectory aligns with India’s broader target of reaching 500 GW of non-fossil fuel capacity by 2030, a goal announced as part of its international climate commitments. Achieving the longer-term expansion outlined by policymakers would further reinforce the country’s position as one of the fastest-growing renewable energy markets globally.

Electricity Demand Driving Expansion

A key driver behind the ambitious targets is the sharp increase in electricity demand expected over the next decade. India’s economic growth, urbanisation, and rising living standards are contributing to higher energy consumption across all sectors.

Electrification of transport, including the adoption of electric vehicles, is expected to add further pressure on the power system. Similarly, industrial decarbonisation efforts, such as the use of green hydrogen, will require large volumes of renewable electricity.

To meet this demand sustainably, India is prioritising renewable energy as a cost-effective and scalable solution. Solar and wind power, in particular, offer relatively quick deployment timelines compared to conventional generation, making them critical to bridging supply gaps.

Grid Integration and Storage Challenges

While the expansion of renewable capacity presents clear opportunities, it also raises challenges related to grid stability and energy storage. Solar and wind generation are inherently variable, requiring investments in grid infrastructure, flexible generation, and storage technologies.

India has begun to address these issues through initiatives aimed at strengthening transmission networks and promoting battery storage. Large-scale energy storage systems, including pumped hydro and battery projects, are expected to play an increasingly important role in balancing supply and demand.

In addition, policymakers are exploring hybrid projects that combine solar, wind, and storage to provide more stable power output. These integrated solutions are gaining traction in India’s renewable auctions and could become a key feature of future capacity additions.

Investment and Policy Support

Achieving the projected growth in solar and wind capacity will require substantial investment from both public and private sectors. India has already attracted significant international capital into its renewable energy sector, supported by policy frameworks designed to reduce risk and improve returns.

Key measures include long-term power purchase agreements, transparent bidding processes, and incentives for domestic manufacturing of renewable energy components. The government has also introduced policies aimed at boosting local production of solar modules and reducing reliance on imports.

Continued policy stability and regulatory clarity will be essential to maintain investor confidence and ensure timely project execution. Delays in land acquisition, permitting, and grid connectivity remain challenges that need to be addressed to accelerate deployment.

Implications for Industry and Energy Markets

The planned expansion of renewable energy capacity has wide-ranging implications for industries, utilities, and energy markets in India and beyond.

For industrial players, increased availability of renewable electricity could support decarbonisation strategies and reduce exposure to fossil fuel price volatility. Sectors such as steel, cement, and chemicals are expected to benefit from greater access to clean power, particularly as carbon regulations tighten globally.

Utilities and grid operators will need to adapt to a more decentralized and variable energy system, investing in digital technologies and advanced forecasting tools. At the same time, the growing share of renewables could reshape electricity pricing dynamics, with potential impacts on wholesale markets and tariff structures.

Internationally, India’s expansion could influence global supply chains for renewable technologies, including solar panels, wind turbines, and energy storage systems. Increased demand may drive further cost reductions while also intensifying competition for critical materials.

Balancing Growth and Decarbonization

India’s renewable energy ambitions reflect a broader effort to balance economic development with climate action. While coal continues to play a significant role in the country’s energy mix, the planned growth in solar and wind capacity indicates a gradual shift toward cleaner sources.

The success of this transition will depend on the country’s ability to integrate large volumes of renewable energy while maintaining reliability and affordability. It will also require coordinated action across government agencies, industry stakeholders, and financial institutions.

As India moves forward with its energy transition, the scale of its renewable expansion will be closely watched by global markets. The country’s approach could serve as a model for other emerging economies seeking to align growth with net-zero objectives.

Source: www.reuters.com