India is poised for a massive transformation in its power sector as renewable energy and energy storage emerge as central pillars of the country’s future energy mix. While coal-fired thermal power plants supplied 78 percent of the nation’s electricity in 2023, BloombergNEF (BNEF) projects a dramatic shift by 2030 and beyond through aggressive investments in clean energy.
Between 2024 and 2030, India is expected to add 377GW of new renewable capacity — 282GW of solar and 75GW of wind — alongside 112GW of energy storage. This scale of investment will help raise the renewable share of annual electricity supply to 45 percent by 2030, nearly doubling from 2023’s 19 percent. This transformation will also accommodate the expected rise in electricity demand during the same period.
By 2050, renewables are forecasted to supply 84 percent of India’s electricity, with utility-scale solar and onshore wind contributing 41 percent and 32 percent, respectively. Although rooftop solar is projected to provide a modest 5 percent of generation by then, it will remain vital for corporate and residential self-sufficiency, especially in urban centers.
Achieving such high renewable penetration demands a rapid buildout of energy storage. Battery energy storage systems (BESS) are expected to dominate short-duration applications, while long-duration storage like pumped hydro will be essential to address intermittency across seasons and low-output days. To reach its targets, India must scale its energy storage and low-carbon dispatchable power capacity 20 times from the current base of 12GW, primarily supported by nuclear and hydro.
A key part of this energy evolution is enabling 24/7 carbon-free electricity (CFE) procurement—meeting every hour of electricity demand with clean energy. This is especially important for corporates seeking to decarbonize operations. Investment in clean power infrastructure will need to total $853 billion this decade, with an additional $178 billion required for grid modernization.
Investment trends
India will require over $5 trillion in clean power and grid investments between 2024 and 2050 under the Net Zero Scenario, according to BloombergNEF. In the period 2024–2030, investments will total $1.04 trillion, comprising $853 billion for clean power capacity and $187 billion for grid infrastructure. This rises to $1.97 trillion in 2031–2040, with $1,368 billion for capacity and $602 billion for grid. From 2041–2050, the investment need reaches $2.14 trillion, including $1,300 billion in capacity and $837 billion in grid development.
Solar power attracts the largest share of capacity investment across all decades, with spending increasing from $144 billion in 2024–30 to $481 billion in 2041–50. Wind investment also scales up significantly, reaching $534 billion during 2031–40 before tapering slightly. Energy storage investment climbs steadily from $122 billion to $269 billion, underscoring the growing role of batteries and pumped hydro in balancing variable renewables. Spending on low-carbon dispatchable power remains relatively modest, hovering around $30 billion each decade, while investment in other renewables grows marginally.
Grid investment sees a major uptick, reflecting the need to support large-scale renewable deployment. Transmission accounts for a growing share, expanding from $78 billion in 2024–30 to $430 billion by 2041–50, while distribution investments increase from $109 billion to $407 billion in the same period.
BloombergNEF notes that India’s clean energy auctions over the past decade have efficiently driven large-scale solar and wind deployment. New auction formats requiring delivery during specific hours have encouraged hybrid projects integrating storage. India can further evolve its auction design to attract corporate investments in low-carbon dispatchable technologies and strengthen grid resilience.
Baburajan Kizhakedath