Despite capacity hikes, renewable energy facing admin, financial hurdles

Towards the target of 500 GW of renewable power capacity by 2030, India doubled its solar capacity and pushed its wind capacity by 21% between 2023 and 2024. Solar power accounts for 47% of the total renewable installed capacity, with Tamil Nadu, Rajasthan, and Gujarat leading the charts.

However, 38.3 GW of renewable capacity was cancelled between 2020 and 2024.

This occurred due to technical and location challenges, delays in signing power supply agreements and land acquisition, and tender design problems, such as tariff caps, unflexible contracts, and unrealistic bidding conditions that discouraged developers from participating in such projects. Payment delays from power distribution companies and financial instability also contributed to cancellations.

Globally, continued expansion of renewable energy often leads to grid disturbances, oversupply, and negative energy prices (when producers pay consumers to consume excess electricity).

China reduced subsidy-driven incentives, and Europe now restricts the promotion of renewables.

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