Policy stability is the key to expanding India’s renewable energy ecosystem

Last year witnessed the largest single-year addition of renewable capacity as developers raced to stay within the waiver window.

By Bhupinder Bhalla 

India is standing at a pivotal moment in its clean energy transition. With 500 GW of non-fossil fuel capacity targeted by 2030, the ambition is unambiguous. The real challenge lies in execution—ensuring that India not only deploys clean power but also indigenizes the value chain under the National Manufacturing Mission. Building a domestic ecosystem for renewable manufacturing is as much about energy security and economic resilience as it is about climate action.

At the core is a fundamental economic truth: no manufacturing base can thrive without demand certainty. Developers require long-term power purchase agreements at viable tariffs, and manufacturers need visibility of future orders before investing in capacity. Strengthening this demand-supply loop is essential to make India a global hub for clean-tech manufacturing. 

Wind and Solar: The Twin Engines

Wind energy, despite its strategic advantages in grid stability and generation in non-solar hours, has not yet matched its potential. Annual additions remain at 4–5 GW, below the 8–10 GW needed to meet the 2030 target of around 100 GW capacity. While India produces 35–40% of wind turbine components domestically, further growth is constrained by inconsistent demand and policy uncertainty. Measures such as sub-targets within Renewable Purchase Obligations (RPOs), correcting inverted duty structures, and incentivizing domestic production of critical components like castings and forgings can unlock 60% indigenization. This shift could create up to 50,000 jobs and save over ₹45,000 crore in imports.

Solar power, on the other hand, has seen robust growth with 110 GW installed by May 2025. However, to touch 300 GW by 2030, annual installations must increase to 40 GW per year. Currently, only about 20% of solar value chain is made in India. The Production Linked Incentive (PLI) scheme, ALMM policy, and BCD on imports are catalysing investments, but demand visibility remains critical. A clear trajectory of annual bids and stable procurement policies will encourage upstream investments in polysilicon, wafers, and cells. Achieving 50% solar indigenization could generate 100,000 jobs and avoid up to ₹84,000 crore in imports. 

Policy Enablers: From Vision to Execution

To deliver on these goals, India must provide long-term demand visibility through strict renewable purchase obligations (RPO) enforcement, predictable auction schedules, and strong implementation of Green Open Access rules. 

Policy stability is vital. Developers and manufacturers require assurance that regulations will not shift unpredictably. Coordinated central-state policy alignment on land acquisition, grid connectivity, and transmission expansion will reduce friction and lower project risks. Policy changes must be characterized by phased transitions and milestone-based assessments.

Consider the looming ISTS (Inter-State Transmission System) charge waiver phaseout. These waivers help projects in high-resource states serve demand centres across the country. They are enablers of market efficiency. The impending deadline has already demonstrated its potency: last year witnessed the largest single-year addition of renewable capacity as developers raced to stay within the waiver window. Some of these projects have already invested heavily, and face delay due to procedural bottlenecks.

On the fiscal side, targeted subsidies, concessional finance, and rationalized import duties are necessary. Expanding the PLI scheme, correcting import duty anomalies, and offering low-cost finance will help Indian manufacturing become globally competitive. Infrastructure, including dedicated RE zones, single-window clearances, and logistics support, should be prioritized.

Investments in R&D and workforce development are equally crucial. India needs clean-tech centers of excellence, shared R&D labs, and revamped vocational and technical education aligned with industry needs. With the right skilling programmes, clean energy can become a mass employment generator.

Finally, India should actively position itself as a clean energy exporter. Strategic EXIM credit lines for solar and wind projects in developing countries and LDCs can create demand for Indian-made equipment while boosting global influence.

Conclusion: A Made-in-India Energy Future

India’s ability to scale solar and build a strong wind base is recognized globally. Now, the focus must shift from deployment alone to building a resilient, self-reliant clean-tech industrial ecosystem. The National Manufacturing Mission provides the institutional vehicle to align climate goals with economic and strategic priorities. At the Bharat Climate Forum, a multi-stakeholder platform, indigenous pathways for solar, wind, batteries, EVs, high-voltage transmission lines, and green hydrogen are being developed to assist policymakers and the private sector in driving the Make in India agenda.

This is India’s moment to act with confidence and clarity. By ensuring demand certainty, policy continuity, and robust support for domestic manufacturing, we can build a clean energy future that has a truly Indian backbone. The choice is clear: this is not a time to hesitate, it is a time to nurture and build.

Bhupinder Bhalla is former secretary of Ministry of New & Renewable Energy

(Views expressed are personal and do not represent the stand of this organisation.)