India's Renewable Energy Boom Faces Key Land, Infra Bottlenecks: Report

A YES Securities report notes strong growth in India's renewable energy sector, driven by demand and policy. However, major bottlenecks like land availability, evacuation infrastructure, and transmission approvals persist, favoring larger developers.

Land availability, evacuation infrastructure and transmission approvals continue to remain major bottlenecks for India's renewable energy sector despite strong growth momentum, according to a report by YES Securities.

Growth Drivers and Policy Support

The report stated that India's renewable energy sector continues to witness strong structural growth driven by rising electricity demand, government decarbonisation targets, increasing corporate renewable adoption and large-scale investments across solar, wind, hybrid and storage infrastructure.

According to the report, policy support through Approved List of Models and Manufacturers (ALMM) regulations, domestic manufacturing incentives, transmission expansion and renewable procurement obligations is strengthening the long-term outlook for the sector.

The report added that increasing demand from industrial users, utilities, data centres and commercial consumers is accelerating renewable energy capacity additions across both Independent Power Producer (IPP) and Captive Power Plant (CPP) segments.

Emerging Opportunities and Persistent Hurdles

It further highlighted that emerging opportunities in battery energy storage systems (BESS), round-the-clock (RTC) power, floating solar, green hydrogen and energy trading are expected to play a larger role as renewable energy penetration increases across the power grid.

However, it stated that "land availability, evacuation infrastructure and transmission approvals continue to remain key execution bottlenecks, thereby favoring developers". The report noted that these challenges are increasingly favouring larger and established renewable energy developers with stronger project execution capabilities.

India's Renewable Energy Milestones

Meanwhile, according to the Ministry of New and Renewable Energy (MNRE), India currently ranks third globally in renewable energy installed capacity. China remains the global leader with renewable energy installed capacity of 2258.02 GW, followed by the United States at 467.92 GW, while India stands third with 250.52 GW.

Installed Capacity Growth

The ministry data also showed that India's renewable energy installed capacity has increased 3.59 times since 2014. Renewable energy capacity rose from 76.38 GW in March 2014 to 274.68 GW in March 2026, registering an increase of 198.30 GW. Solar energy capacity witnessed the sharpest growth during the period, increasing 53.28 times from 2.82 GW in March 2014 to 150.26 GW in March 2026. Wind energy installed capacity also increased 2.66 times from 21.04 GW in March 2014 to 56.09 GW in March 2026.

Domestic Manufacturing Expansion

India's domestic manufacturing capabilities have also expanded significantly. According to the ministry data, wind turbine manufacturing capacity increased from 10 GW in 2014 to around 24 GW as of March 31, 2026. Solar module manufacturing capacity rose sharply from 2.3 GW in 2014 to around 172 GW as of March 31, 2026. (ANI)

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