BackECONOMY
India’s renewables sector needs a fundamental reset
The article notes India’s updated NDC for 2031–2035 targets 60% non-fossil installed capacity, while renewables already account for about half of installed capacity (over 250 GW) but only a quarter of generation. It argues that reliability requires reforms across grid design, market structure, and distribution governance to deliver affordable, round-the-clock power amid external energy uncertainties.
Why It Matters
Energy security now demands internal resilience and reliability, not just access. The proposed reforms seek to strengthen how power is produced, priced, and delivered to withstand global energy volatility.
Timeline
5 Events
Market design shift toward energy, capacity, and flexibility pricing
May 3, 2026
The article argues for evolving electricity markets from a sole focus on energy to pricing three services: energy, capacity, and flexibility. It cites global examples where differentiated markets and ancillary services price reliability, storage, and demand response, enabling more robust renewables integration.
Distribution reform: feeder segregation and solarising agricultural feeders
May 3, 2026
The piece highlights feeder-level segregation as a durable reform, with examples like Maharashtra showing transparency and efficiency gains. It also discusses solarising agricultural feeders to provide reliable daytime power and enable targeted subsidies through direct benefit transfers.
Intra-state network constraints persisting alongside expanded inter-state lines
May 3, 2026
The article notes that intra-state networks remain weak even as inter-state transmission expands, causing a situation where clean power is curtailed while other regions depend on costlier thermal generation.
NDC update targets 60% non-fossil capacity (2031–2035)
May 3, 2026
The article discusses India's updated Nationally Determined Contribution (NDC) for 2031–2035, which aims for 60% of installed power capacity to be non-fossil-fuel-based, amid rising energy-security considerations following regional geopolitical tensions.
May–Dec 2025: solar curtailment highlights intra-state constraints
May 2025
Between May and December 2025, 2.3 terawatt-hours of solar power were curtailed, signaling transmission and dispatch constraints. In Rajasthan, curtailment reached 50%, with about 3.3 GW of capacity lying idle, illustrating inefficiencies in absorbing surplus renewable energy within states.