India is producing more green energy - but wasting a lot of it

In a remarkable achievement, India generated over half of its peak power demand from renewable sources for the first time in two years, marking a significant milestone in the nation's green energy transition. Solar, wind, hydro, and nuclear energy collectively outpaced coal-based power, signaling that renewables are no longer a marginal source in India's electricity mix.

However, the gains are overshadowed by substantial challenges. The rapid expansion of renewable energy capacity has far outpaced the development of transmission infrastructure, resulting in transmission constraints causing about two-thirds of all renewable curtailment. Nearly a quarter of inter-state projects have faced delays of over a year due to issues like right-of-way acquisition, approvals, and coordination among agencies.

Moreover, the concentration of renewable projects in the northwestern states of Gujarat and Rajasthan has exacerbated the problem of power evacuation during grid shortages. While battery storage systems could have helped mitigate waste, the soaring costs of batteries, raw material shortages, and a weakened Indian currency have hindered their growth.

Financing remains a critical issue, as the country requires $400-$500 billion to meet its 500 gigawatt non-fossil electricity target by 2030, a significant portion of which would need to be sourced domestically. Despite the Paris Agreement's commitment to providing $100 billion annually in financial resources to developing countries for climate action, only 15% of global clean-energy investment goes to emerging and developing economies outside China.

Addressing these challenges in transmission infrastructure, storage, and finance is crucial as India accelerates its transition, facing a growing electricity demand fueled by the expansion of industries like data centers and chip manufacturing.