(MENAFN- Live Mint)

Mumbai: India's clean energy transition is at a“make-or-break moment", industry experts and policymakers said at the Mint Sustainability Summit 2025, adding that the country's renewable energy ambitions must now translate into faster execution and stronger financing.

Speaking on the theme“Scaling clean energy for a climate-ready India- bridging policy, financing and systems delivery", the panel noted that while India has paced faster in renewable capacity, the challenges of storage, land availability, transmission, and financing remain points of concern.

India currently has a capacity of 295.89 gigawatts (GW) of installed renewable capacity including nuclear power capacity, well ahead of earlier plans. With annual capacity additions crossing 40% growth, experts believe the government's 500 GW target for 2030 may be reached as early as 2028.

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“We are well poised to achieve this ambitious target," said Sharath Pungalia, country head at Gentari India, adding that the focus must now shift from just gigawatts of installed capacity to gigawatt-hours of actual consumption.

Vijay Agarwal, managing director at Equirus Capital, said that last year India added a record 30 GW, and this year the figure could exceed 50 GW, which would be double the earlier pace.

“Targets are essential because they inspire," said Abhishek Poddar, India Country Head, Macquarie Group, another panellist.“When 500 GW was first announced, many were sceptical. Today, it looks achievable, possibly even ahead of time. However, the next question is: what after 500?"

Despite India's rapid progress, scaling up renewables is far from simple. The panellists flagged three major hurdles: land acquisition, transmission capacity, and intermittency.

Large solar and wind projects require significant land, often sparking local disputes.“As we are growing, the good sites are getting limited, the challenges of setting up projects are becoming more and more, local issues of development and land aggregation are all mounting and increasing day by day for all big projects," Pungalia noted. Transmission infrastructure too is struggling to keep pace. Rajasthan, which has emerged as a solar hub, has already seen grid curtailments due to excess daytime solar power which is not being evacuated.

Chairman and managing director of Indian Renewable Energy Development Agency (Ireda) Ltd Pradip Kumar Das highlighted that while policy support has been strong, land remains a state subject, slowing progress despite central schemes.

The transition to renewable comes with a steep price tag. To meet the 500 GW target, India will require ₹30 trillion in investment, of which nearly three-fourths must come as debt financing, Das said.

At the same time, financing costs remain high.

“One big issue the industry is facing is the passing of interest rate cuts by the financial institutions, which is not happening," said Agarwal.“You have to do refinancing to get the interest rate deduction."

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The panellists agreed that India must reduce its reliance on imports. Currently, much of the country's solar equipment is imported, although the government's production linked incentive (PLI) scheme has spurred new domestic manufacturing.

“Very soon we are going to be self-sufficient in the manufacturing of solar components in the country and have surplus to support other underdeveloped and developing countries," Das said. But rapid technological ageing may need replacement every five to six years and will require constant reinvestment.

While the numbers show progress, the panelists stressed that the renewable push is not just about targets but about securing a sustainable future for the next generation.

“We need to ensure a sustainable environment so that at least our next three, four generations will not curse us.," Das said, adding that renewable energy is not charity and it works because it makes economic sense.

With record installations, strong investor interest, and robust policy backing, the panel concluded that India's clean energy story is a rare bright spot. Yet, the consensus was clear: execution, not ambition, will define success.

“We have been both proactive and reactive when it comes to our policy framework to help to strengthen this energy transition. There is still a lot of work to be done," said Pungalia.
To which, Das responded saying,“As new technology emerges, our ministry and regulatory body has to look into developing the new policy to address new challenges. But whatever policies we have should be executed well, otherwise you may have to bring a new policy to execute the old policy."

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While India is progressing well in renewable energy it should also look at other aspects.

“Renewables has been a great story for us. Let's step back and look at broader clean energy and replicate the same success story in electric vehicles, green hydrogens and other dimensions," said Poddar.

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