![*Reference:MNRE India [1] This pie chart with the percentages derived from actual data was created with MS Excel](https://www.digitalnewsreport.com/wp-content/uploads/2026/09/renewable_energy_share_india_png_20260923_013826.png)
India is generating more electricity from renewable sources than ever before, but some of that power is going to waste. In July, renewable and other non-fossil energy sources met over half of India’s peak electricity demand for a short time, only the second such occurrence. Despite this progress, coal plants still provide the majority of India’s electricity, averaging about 70% of total output. Coal plants produce more electricity because they operate for longer hours than solar or wind installations.
Ten years ago, India had about 46 GW of renewable power capacity excluding large hydro. The country now has about 552 gigawatts of installed power capacity, with renewable and other non-fossil sources making up more than half. India’s Ministry of New and Renewable Energy reported nearly 296 GW of renewable capacity by the end of August 2026.
The main reason for the waste is a lack of transmission infrastructure, according to the BBC. Building new renewable power generation projects usually takes about 18 to 24 months. But expanding the grid to carry that power can take three to five years because of land acquisition, right-of-way issues, approvals and coordination between agencies.
The grid could handle new power capacity when India was adding 10 to 15 gigawatts annually. Now, India is adding much more power, which the grid cannot fully absorb. The BBC reported that India added a record 51 GW of new capacity last year.
The problem can leave renewable plants producing electricity that cannot reach customers. The BBC cited data from energy think tank Ember showing that transmission constraints caused nearly two-thirds of renewable energy curtailment during the first quarter of 2026. About 300 gigawatt-hours of generation was curtailed because of transmission limits.
The issue has become particularly serious in Rajasthan and Gujarat. Both states have large solar and wind developments but limited transmission capacity in some areas. Reuters reported in August that renewable developers had lost about 45 billion rupees, or roughly $470 million, since February 2025 because generated electricity could not be delivered to the grid. About 14% of India’s solar production was curtailed during the second quarter of 2026.
Battery storage could help by saving excess solar electricity generated during the day and releasing it during evening demand. But storage construction has also faced higher costs and supply problems. That means India needs both more transmission lines and more storage if it wants to make full use of its rapidly growing solar and wind fleet.
Estimates cited by the BBC suggest India may need between $400 billion and $500 billion to meet its goal of 500 gigawatts of non-fossil electricity capacity by 2030. Currently, around 83% of India’s finance for climate mitigation is sourced domestically, according to the government’s Economic Survey. The survey warns that domestic resources alone will not be enough to meet all of India’s climate investment needs.
India has already crossed an important milestone. Non-fossil sources now account for more than half of installed generating capacity. However, installed capacity is different from actual electricity generation. Solar and wind facilities cannot run continuously, while coal plants can produce electricity through the night and during periods of low wind.
Coal therefore remains central to the system. The International Energy Agency said coal supplied about 71% of India’s electricity in 2025. Renewable generation is expected to keep increasing rapidly, with solar alone forecast to provide about 10% of electricity in 2026.
Transmission issues are seen as one of the biggest challenges for India’s renewable energy expansion. The BBC reported that one in four interstate transmission projects has faced delays of more than a year. Analysts at Ember described the mismatch between new renewable generation and slower grid construction as a major operational risk to India’s 2030 energy target.
India is the world’s third-largest emitter of greenhouse gases. At the same time, demand for electricity is growing quickly. The International Energy Agency expects Indian electricity demand to grow by an average of about 6.4% a year through 2030 as industry, cooling, data centers and other uses expand.
That growth means India must add electricity supply while also improving the system that carries it. Building solar and wind farms faster than transmission lines can leave valuable electricity unused. Expanding the grid and energy storage will determine how much of India’s growing renewable capacity can actually replace electricity generated from fossil fuels.
IMAGE: *Reference:MNRE India [1]
This pie chart with the percentages derived from actual data was created with MS Excel. Photo: Skydoc28 / Wikimedia, taken 2014-02-12, CC BY-SA 3.0