India is producing more green energy – but wasting a lot of it
India’s renewable energy expansion has reached a significant milestone, with solar, wind, hydro and nuclear power briefly meeting more than half of peak electricity demand in July. Renewables now account for 300GW, or 54%, of the country’s 552GW installed power capacity—five years ahead of schedule—although coal still generates about 70% of electricity because it operates more consistently.
The rapid growth has outpaced India’s transmission infrastructure, causing substantial amounts of clean electricity to be wasted. Transmission constraints accounted for nearly two-thirds of renewable-energy curtailment in the first quarter of 2026, totalling 300GWh, while delays to grid projects and the concentration of generation in Gujarat and Rajasthan have worsened the problem. Battery storage could help shift surplus power to evening demand, but high battery costs, raw-material shortages and a weaker rupee have caused many planned projects to fail.
- India’s renewable capacity has reached 54% of installed power capacity.
- Grid shortages are wasting large amounts of clean electricity.
- Storage investment is lagging because costs and financing pressures are high.