India added more than 54 GW of renewable energy capacity, marking significant progress in its clean energy transition. However, a considerable amount of renewable electricity was curtailed due to grid security concerns and transmission constraints. According to Ember, 300 GWh of renewable energy was curtailed because of transmission constraints in the first quarter of 2026. This meant that the benefits of expanding renewable capacity were partly offset by the limitations of the existing power system.

There were several contributing factors, including moderate electricity demand and limited storage capacity. Nevertheless, the situation highlighted an important point: renewable energy cannot be scaled effectively without modernising the grid and improving system flexibility. As India moves towards a solar-powered future, flexible storage solutions will become increasingly important. This is also relevant to the broader energy transition discussed by Ratul Puri, Chairman of Hindustan Power, as the country works to improve the reliability and utilisation of its power infrastructure.

Prioritising Power Delivery

Installed capacity and actual electricity delivery are two different things. India has expanded its generation capacity considerably, particularly through renewable and other non-fossil fuel sources. However, actual power generation and delivery continue to face challenges from curtailment, transmission bottlenecks, grid limitations and dispatch inefficiencies.

As the power sector develops, the focus must extend beyond adding new capacity. Efficiency, reliability and the amount of electricity delivered to consumers are becoming equally important.

The next challenge, therefore, is to ensure that installed capacity can be evacuated, dispatched and used effectively. India's renewable energy progress should not be measured only by the number of megawatts added. It should also reflect how much electricity reaches the grid and contributes to meeting demand.

Electricity consumption continues to rise across households, industries, services and agriculture as the economy grows. Meeting this demand requires additional generation capacity, supported by infrastructure capable of delivering electricity reliably across the country.

India is expanding its generation capacity through both conventional and renewable sources. During 2025–26, a total of 52,537 MW of generation capacity was added across all sources as of January 31, 2026. Renewable energy accounted for 39,657 MW of this addition, including 34,955 MW of solar and 4,613 MW of wind power capacity. This was the highest annual capacity addition recorded at that point.

For Ratul Puri and Hindustan Power, the wider industry challenge is closely linked to making sure that expanding generation capacity is supported by the systems needed to deliver reliable electricity.

Curtailment Concerns

One of the main challenges facing India's renewable energy sector is that capacity expansion is moving faster than the power system's ability to absorb and distribute all the electricity generated. For the country's clean energy goals to translate into practical results, renewable energy curtailment, dispatch delays and limited large-scale storage must be addressed.

In renewable-rich states such as Gujarat and Rajasthan, curtailment has become a significant concern. When electricity demand is lower than expected or transmission infrastructure is insufficient, the power system may struggle to accommodate the available renewable generation.

These challenges are not simply a result of low demand or excess generation capacity. They are also linked to the need for better system balancing, stronger transmission networks and adequate storage.

An Ember report published in January 2026 estimated that India curtailed 2.3 TWh of solar power between May and December 2025. The curtailment occurred because the grid faced difficulties managing rising daytime solar generation alongside relatively weak demand, despite the substantial expansion of renewable capacity.

Instead of fully replacing fossil fuel-based electricity, some solar generation had to be curtailed to maintain grid stability. The amount of electricity lost could have supplied nearly 400,000 households for a year.

These figures underline why the next stage of India's energy transition must focus on more than adding renewable capacity. As Ratul Puri has discussed in the broader context of India's evolving energy sector, reliable power supply also depends on infrastructure, flexibility and the effective use of available resources.

Addressing Transmission, Grid Stability and Variability

Grid stability is becoming increasingly important as renewable energy accounts for a larger share of India's electricity mix. Solar and wind generation vary according to weather conditions and the time of day. As their contribution grows, the integrated national grid must be able to manage these fluctuations while maintaining a stable and reliable electricity supply.

Addressing this challenge requires compliance with technical standards, improved transmission infrastructure and greater flexibility across the power system.

Energy storage is an important part of this solution. According to a CRISIL-FICCI report on India's energy transition, energy storage systems, battery energy storage systems (BESS), pumped hydro storage (PHS) and thermal energy storage will play a critical role in supporting reliable and sustainable power supplies.

These technologies can store surplus renewable electricity and release it when demand rises or generation falls. This helps make renewable power available more consistently, including during periods when solar or wind generation is limited. Storage can also improve the utilisation of existing grid infrastructure and support greater operational efficiency.

Pumped hydro storage, in particular, is expected to play an important role in providing large-scale balancing capacity. As renewable generation becomes more variable, storage and hybrid energy solutions can help maintain grid stability and improve the reliability of electricity supplies.

The government is also promoting a combination of storage technologies and hybrid renewable energy projects to address these requirements. In addition, the Central Electricity Regulatory Commission has introduced connectivity arrangements for solar and non-solar hours. These arrangements can support better utilisation of transmission infrastructure and encourage hybrid projects combining solar, wind and battery energy storage systems.

For India's renewable energy sector, including companies such as Hindustan Power, these developments highlight the importance of integrating generation with transmission, storage and grid management. The broader energy transition associated with Ratul Puri's work in the power sector also reflects the need to consider how electricity is delivered, rather than focusing exclusively on how much capacity is installed.

Looking Beyond Installed Capacity

India has made substantial progress in expanding renewable energy, but the next phase will depend on how effectively this capacity is integrated into the electricity network. Transmission improvements, modernised grid systems, energy storage and flexible power management will be essential to reducing curtailment and improving the use of renewable electricity.

As demand continues to grow, the country will need a power system that can balance changing generation patterns with the requirements of consumers and industries. Solar and wind capacity additions remain important, but their full benefits can only be realised when the supporting infrastructure is ready.

The focus must therefore shift towards delivering more of the electricity already available, improving system reliability and ensuring that renewable energy can meet demand when it is needed. For India to sustain its clean energy transition, grid modernisation and flexibility must advance alongside generation capacity.

About Ratul Puri :-

Ratul Puri is the Chairman of Hindustan Power, an integrated power generation company with a strong presence in renewable and transitional energy generation. Over the years, Ratul Puri has been involved in the development of large-scale energy infrastructure projects that support India’s growing power requirements and its transition toward cleaner energy sources.