India is moving into a new phase of its energy transition, driven by two closely linked developments: increasing electricity demand and the rapid growth of renewable energy.
As manufacturing expands, digital infrastructure develops and electrification spreads across sectors such as transport, electricity is becoming increasingly important to India's economic development. At the same time, the country is adding solar and wind capacity at an unprecedented pace, bringing new opportunities as well as challenges for the power system.
Ratul Puri, Chairman of Hindustan Power, has highlighted that India is entering an “era of electricity”, where renewable generation must be supported by transmission infrastructure, energy storage and smarter grid systems. The key point is that expanding generation capacity is only one part of the transition. India must also ensure that electricity can be transported, stored and supplied whenever and wherever it is required.
India's Changing Power Landscape
India's electricity demand is increasing due to economic growth, industrialisation, urbanisation and greater electrification. Manufacturing requires a reliable power supply, while data centres and other digital infrastructure are creating additional demand. The growing adoption of electric vehicles is also expected to influence the country's electricity consumption.
The International Energy Agency expects India's electricity demand to grow by an average of around 6.4% annually through 2030. Industry, cooling, households, services, agriculture and transport are all contributing to this increase.
Renewable energy is becoming an increasingly important source of electricity in India. According to Ember's Global Electricity Review 2026, solar became the country's largest source of clean electricity in 2025, accounting for 9.4% of total electricity generation. Solar and wind together contributed 14% of India's electricity mix.
These figures show how quickly renewable energy is expanding. However, they also raise an important question: how can the power system integrate increasing amounts of variable renewable electricity when generation does not always match demand?
Generation Is Only One Part of the Transition
Solar power generates the most electricity during the day, while demand can remain high or increase after sunset. This is particularly important as cooling requirements rise. The IEA notes that India's summer peak net load typically occurs around 8 p.m., when solar generation is no longer available.
Wind generation also varies depending on weather conditions and location. As renewable energy becomes a larger part of the electricity mix, the power system will need greater flexibility to manage fluctuations in both generation and demand.
Transmission infrastructure is therefore becoming just as important as generation capacity.
Many renewable energy projects are located in areas with strong solar and wind resources, while major industrial, commercial and urban demand centres may be situated elsewhere. Electricity must travel across longer distances, making the expansion and modernisation of transmission networks essential to India's energy transition.
The Grid Is Becoming a Strategic Priority
The effects of limited transmission capacity are already evident.
An Ember analysis found that India curtailed around 300 GWh of renewable electricity due to transmission constraints between January and March 2026, particularly in the Northern and Western regions. Total renewable energy curtailment during the quarter was estimated at around 470 GWh, with the remaining amount attributed to system inflexibility.
This highlights a major challenge for India's energy transition: renewable generation can expand faster than the infrastructure needed to transmit and integrate the electricity produced.
Ember also found that India had achieved approximately 80% of its annual transmission targets over the previous five years. This points to the need for closer coordination between generation and transmission planning.
For policymakers and power sector companies, transmission is becoming more than an infrastructure requirement. It is an increasingly important part of India's clean energy transition.
Storage and Smarter Grids
Transmission infrastructure alone cannot resolve every challenge.
As solar and wind capacity increases, India will need more flexible resources to respond to changes in electricity generation and demand. Battery energy storage systems can help shift renewable electricity from periods of high generation to periods of greater demand, while also supporting grid balancing.
The IEA has highlighted the growing importance of battery storage in meeting India's evening and night-time electricity needs. Batteries can help manage peak demand and reduce the need for conventional power plants to rapidly increase generation as solar output declines.
This reinforces the importance of an integrated approach to power system planning, where renewable generation, transmission, storage and grid management are developed together rather than treated as separate components.
From Renewable Capacity to Reliable Electricity
The broader argument associated with Ratul Puri is particularly relevant to India's changing energy landscape.
The country's energy transition cannot be measured solely by the amount of renewable capacity installed. A more meaningful measure is how effectively that capacity contributes to a reliable electricity supply.
The next phase of the transition will require continued renewable energy development, stronger transmission networks, energy storage and increasingly advanced grid management systems.
India has already demonstrated its ability to expand renewable generation rapidly. The challenge now is to develop the wider electricity system needed to support this growth.
As electricity becomes increasingly central to India's economic development, the country's energy future will depend not only on generating more clean power but also on building the infrastructure required to move, store and deliver it reliably.
This will remain one of the defining challenges and opportunities as India moves towards a more electrified economy with a growing share of renewable energy.
About Ratul Puri
Ratul Puri is the Chairman of Hindustan Power, an integrated power generation company with a strong presence in renewable and transitional energy generation. Over the years, Ratul Puri has been involved in the development of large-scale energy infrastructure projects that support India’s growing power requirements and its transition toward cleaner energy sources.
For more information visit: