As India accelerates towards its ambitious renewable energy targets, the sector is increasingly confronting deeper structural challenges around grid readiness, transmission infrastructure, storage viability and long-term energy security. While policy support and capacity additions continue to drive strong momentum, questions around evacuation infrastructure, battery economics and industrial energy demand remain central to sustaining growth at scale. In an interaction with BW Businessworld, Siddharth Bhatia, MD and CEO, Oyster Renewable and AB Eneegia, spoke about India’s progress towards its 500 GW renewable energy target by 2030, the evolving role of open access policies, the commercial reality of battery storage and how recent geopolitical tensions are further strengthening the global and domestic push towards energy independence through renewable energy adoption.
What would you say is the biggest challenge facing India’s renewable energy sector today?
I think the stage is set for India to move towards achieving its renewable energy targets, and the regulatory framework is largely supportive of the country’s long-term goals. However, one of the biggest challenges the sector continues to face is infrastructure readiness, particularly the evacuation and transmission infrastructure required to absorb the scale of renewable power being installed across the country. While the government is working extensively on strengthening the grid and related infrastructure, these projects come with their own execution hurdles and timelines. Until the country has a fully integrated and efficient evacuation network in place, these bottlenecks could slow down progress towards achieving the 2030 renewable energy targets. At the same time, it is important that the vision remains long-term rather than only target-driven for the short term.
That is why the government’s net-zero target for 2070 is significant because it provides a larger directional framework for the sector beyond just the 2030 milestones. Renewable energy development is not only about adding generation capacity but also about ensuring that the supporting infrastructure evolves simultaneously. India has already made substantial progress in renewable energy deployment, but sustaining that momentum will depend heavily on how quickly grid modernization and transmission connectivity can scale up alongside generation projects. The industry is aligned with the government’s ambitions, but infrastructure readiness remains one of the critical areas that needs continued focus to ensure that installed renewable capacity can be efficiently integrated into the national grid over the coming years.
How close is India to achieving its target of 500 GW renewable energy capacity by 2030?
A: I believe India is well on its way towards achieving the 500 GW renewable energy target by 2030. On the ground, the country has already crossed close to 270 GW of installed renewable energy capacity, which is a significant milestone in itself. The remaining capacity addition required over the next few years is substantial, but the pace at which the sector is expanding gives confidence that the target is achievable. In fact, there are already discussions emerging around recalibrating the target upwards in the future. I recently came across statements from government representatives suggesting that India may eventually look beyond the 500 GW target and aim for significantly higher renewable energy capacity over time. That reflects the scale of ambition currently shaping the sector.
For India’s broader economic and industrial growth story, solving the country’s energy requirements will remain fundamental. Industrialization at the scale India aspires to requires reliable and large-scale power availability, and renewable energy will continue to form an important part of that mix. The sector has already seen several companies establish projects at the gigawatt scale, and many developers continue to expand aggressively. From our perspective as a company, we continue contributing towards that larger national objective through our own renewable energy projects and investments. While we may still be among the smaller players compared to some of the large-scale developers operating in the market today, the overall ecosystem is moving in a direction where achieving 500 GW by 2030 appears realistic given the current pace of execution and policy support.
Do you think India’s open access renewable energy policy framework is conducive for developers and industries?
I believe the government has managed to create a favorable policy framework through mechanisms such as open access and group captive policies. These frameworks are aligned with the requirements of both developers and industrial consumers. From a developer’s perspective, the objective is to build high-quality renewable energy projects that can operate efficiently over long durations, considering these are typically 25-year assets. The focus is on delivering one of the lowest possible energy costs to offtakers while maintaining long-term project reliability. On the other hand, industrial consumers are looking for stable, reliable and competitively priced power through a diversified mix of energy sources. Since renewable energy remains intermittent in nature, industries require access to multiple power sources to ensure continuity and reliability of supply.
Policies such as open access allow industrial consumers to directly procure renewable energy while also reducing the impact of additional grid-related charges that would otherwise increase the levelized cost of energy. These policy structures are helping renewable developers and consumers participate more efficiently in the market. At the same time, I believe some of the current advantages available to offtakers may gradually reduce once India moves closer to achieving its renewable energy targets. As the country progresses towards milestones such as the 500 GW target by 2030, some incentives and structural benefits could be recalibrated. That is why industries looking to transition towards renewable energy should move relatively quickly in taking advantage of the current policy environment. The existing framework provides a favorable opportunity for long-term renewable energy adoption while these benefits remain available.
Is battery energy storage commercially viable in India today?
Battery energy storage is an area that the entire global renewable energy ecosystem is currently working towards solving at scale. While the industry has successfully accelerated the transition from conventional energy sources towards renewable energy, there is also recognition that renewable energy alone cannot yet provide completely stable and reliable round-the-clock power. Battery energy storage systems are often discussed as a solution, but the situation is more complex because different forms of storage technologies will likely need to work together within the broader energy ecosystem. One such example is pumped storage projects, where water reservoirs are used to store and release energy over longer durations. These systems complement battery technologies because they can support long-duration energy requirements that batteries alone may not currently address economically.
Battery prices have declined significantly over recent years, but economic parity with conventional coal-based power generation has not yet been fully achieved. At present, batteries can effectively address short-duration supply gaps of two to four hours within a 24-hour supply cycle. Our own approach has been to build a hybrid renewable energy portfolio combining wind and solar assets to create a more balanced generation profile throughout the day. Wind energy supports nighttime generation while solar supports daytime generation. Batteries are then being integrated into certain projects to help address temporary dips in renewable generation caused by factors such as cloud cover or lower wind speeds. Batteries can also support grid requirements during peak demand hours, particularly between 5:30 p.m. and 8 p.m., when electricity demand rises sharply. So while battery storage is becoming increasingly important, the sector is still evolving towards full-scale commercial viability across all applications.
How do you think recent geopolitical tensions are impacting energy security and renewable energy adoption?
The recent geopolitical situation has reinforced the importance of energy security globally. According to my understanding, the Prime Minister’s recent comments around conserving energy and reducing dependence on imported fuel sources were intended to emphasize the broader need for energy independence. India still relies significantly on external sources such as coal, oil and gas for meeting its energy requirements. Renewable energy, on the other hand, offers an opportunity to gradually move towards greater energy independence because it reduces dependence on imported fossil fuels. In fact, the current geopolitical uncertainty has accelerated decision-making among several industrial offtakers, many of whom are now recognizing energy security as an important strategic priority alongside sustainability considerations.
More broadly, the ongoing global energy disruptions have served as a major wake-up call internationally. Situations like these tend to accelerate policy decisions and shift government focus more aggressively towards renewable energy adoption. While renewable energy had already become an important area of focus globally over the last several years due to climate change and sustainability goals, the conversation is now increasingly being driven by energy security concerns as well. Going forward, policy frameworks are likely to place even greater emphasis on reducing external energy dependence and strengthening domestic renewable energy capacity. Within India and globally, renewable energy discussions are expected to move beyond sustainability alone and become more closely linked to national energy security and long-term resilience planning across economies and industries. |
