India has set a target to install 900 gigawatts of clean energy capacity by 2035, nearly tripling its current capacity, and approved almost $20 billion for transmission infrastructure and battery storage to address grid bottlenecks that limit renewable electricity from reaching consumers.
The world's most populous country and one of the largest carbon emitters is also among the fastest to expand clean power. The goal, announced in September, covers solar, wind, hydropower and nuclear energy, nearly twice the previous target of 500 GW by 2030.
But significant obstacles remain. Coal still generated about 71% of India's electricity in 2025, according to energy think tank Ember, and the country's power planners remain concerned about meeting rising demand and maintaining reliable electricity. At the same time, India's grid has struggled to absorb renewable output. Over the past 16 months, enough solar generation to power 10 million homes was curtailed because the grid could not accommodate it, according to government data and Ember.
Experts raised concerns about grid infrastructure and investment. Nikit Abhyankar of the India Energy and Climate Center at UC Berkeley said a robust transmission grid is essential: "If the grid doesn't catch up, then there is no way India can meet this target." Berkeley researchers estimate that beyond about 35 GW of coal capacity already under construction, additional coal plants would not be economically necessary under India's clean energy goals. Abhyankar warned that newly built coal plants could become stranded assets if the government meets its renewable targets. Economist Ajay Shah of the XKDR Forum described the transition as the emergence of an Indian "electrostate," in which electricity increasingly replaces coal and petroleum products, and said India has cheap labor and cheap energy. He warned that government policies that interfere with electricity pricing and private sales could discourage foreign investment. "Currently, the government is a man in the middle, trying to interfere in a transaction between a private generator and a private buyer," which creates a "choke point," Shah said.
Ghanshyam Prasad, chair of India's Central Electricity Authority, said earlier this month the country could need as much as 150 GW of additional coal-fired capacity by 2035. Ember analyst Neshwin Rodrigues said coal will remain important for years, particularly until large-scale batteries can store solar energy to reliably meet demand when the sun is not shining. "You either have more transmission to get the power out and transfer it. Or if you cannot get the power out, you store it and then transfer it during some other hours," Rodrigues said.
The Green Energy Corridor plan includes funding for thousands of kilometers of transmission lines and battery storage, but analysts question whether it is enough. UC Berkeley researchers estimate India needs up to 250 GW of energy storage over the next decade. Abhyankar said India has already overtaken the United States in annual renewable energy growth, and its experience could serve as a model for other developing countries.
Analysis
Why This Matters
- India is the world's third-largest renewable energy producer, and its shift away from coal will influence global emissions and the affordability of clean energy in developing nations.
- The outcome will affect electricity costs for 1.4 billion people and determine whether India can curb new coal construction.
- India's success or failure could shape strategies for other rapidly industrialising economies.
Background
India has one of the world's fastest-growing electricity demands, driven by economic expansion and urbanisation. Coal currently provides the majority of its power, making decarbonisation a significant challenge. The country has already expanded clean capacity to over 300 GW, third behind China and the United States.
Key Perspectives
- Nikit Abhyankar (UC Berkeley India Energy and Climate Center): A robust transmission grid is essential; "if the grid doesn't catch up, there is no way India can meet this target." Beyond coal under construction, new plants risk becoming stranded assets.
- Ajay Shah (XKDR Forum): India is developing an "electrostate" with cheap labour and cheap energy. But policies that distort electricity pricing and restrict private sales could choke investment, and domestic financing alone is insufficient.
- Ghanshyam Prasad (Central Electricity Authority): India could need up to 150 GW of additional coal capacity by 2035 to ensure reliability.
- Neshwin Rodrigues (Ember): Coal will remain crucial for years, especially until battery storage can reliably meet demand when solar and wind are not generating.
What to Watch
- Whether India's grid upgrade under the Green Energy Corridor meets the estimated need for up to 250 GW of storage.
- The government's final decision on new coal capacity: the difference between 35 GW already under construction and the 150 GW mentioned by the electricity authority.
- Foreign investment flows into India's clean energy sector, which Shah says are critical to meeting financing needs.
Checked
12 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedIndia aims to install 900 GW of clean energy capacity by 2035, nearly tripling its current capacity.ABC News: Business: “India announced the 900-gigawatt goal in late September. It covers nonfossil power sources, including solar, wind, hydropower and nuclear energy. India's current clean power capacity of just over 300 gigawatts”
- SupportedIndia approved almost $20 billion for transmission infrastructure and battery storage to ease grid bottlenecks.ABC News: Business: “The government also approved nearly $20 billion in funding for transmission infrastructure and battery storage under its Green Energy Corridor plan.”
- SupportedAbhyankar said, “If the grid doesn't catch up, then there is no way India can meet this target.”ABC News: Business: ““If the grid doesn’t catch up, then there is no way India can meet this target,” Nikit Abhyankar from the India Energy and Climate Center at the University of California, Berkeley, said.”
- SupportedShah said the government was “a man in the middle” interfering in a private generator–private buyer transaction, creating a “choke point.”ABC News: Business: ““Currently, the government is a man in the middle, trying to interfere in a transaction between a private generator and a private buyer,” which creates a “choke point,” Shah said.”
- SupportedRodrigues said power could be transmitted or stored and transferred later: “You either have more transmission to get the power out and transfer it. Or if you cannot get the power out, you store it and then transfer it during some other hours.”ABC News: Business: ““You either have more transmission to get the power out and transfer it. Or if you cannot get the power out, you store it and then transfer it during some other hours,” Ember's Rodrigues said.”
- SupportedThe 900 GW goal covers solar, wind, hydropower and nuclear energy.ABC News: Business: “It covers nonfossil power sources, including solar, wind, hydropower and nuclear energy.”
- SupportedCoal generated about 71% of India's electricity in 2025, according to Ember.ABC News: Business: “Coal generated about 71% of the country’s electricity in 2025, according to energy think tank Ember.”
- Partly supportedOver 16 months, India curtailed enough solar generation to power 10 million homes because the grid could not accommodate it, according to government data and Ember.ABC News: Business: “Over the past 16 months, India curtailed enough solar generation to power about 10 million homes because the grid could not accommodate it, according to government data and Ember.”
- Partly supportedShah warned that policies interfering with electricity pricing and private sales could discourage foreign investment.ABC News: Business: “Shah, the economist, said two types of government policy could discourage investment in renewable energy: requirements that businesses pay higher rates to subsidize other consumers, and restrictions on electricity producers selling directly to private buyers.”
- SupportedPrasad said India could need as much as 150 GW of additional coal-fired capacity by 2035.ABC News: Business: “Ghanshyam Prasad, chair of the Central Electricity Authority, said earlier this month that India could need as much as 150 gigawatts of additional coal-fired generating capacity by 2035.”
- SupportedThe Green Energy Corridor plan includes thousands of kilometres of transmission lines and additional battery storage.ABC News: Business: “The Green Energy Corridor plan aims to help states accommodate up to 135 gigawatts of renewable energy by 2033 by adding thousands of kilometers (miles) of transmission lines. The plan also includes additional battery storage.”
- SupportedBerkeley researchers estimate India needs up to 250 GW of energy storage over the next decade.ABC News: Business: “The Berkeley researchers estimate that India needs as much as 250 gigawatts of energy storage to integrate renewable electricity over the next decade.”