India aims for 900 gigawatts of clean energy by 2035 amid grid choke points

India has announced an ambitious energy plan to install 900 gigawatts of nonfossil power capacity by 2035. The new target nearly doubles the nation’s previous goal of 500 gigawatts by 2030 and covers solar, wind, hydropower, and nuclear energy. If achieved, the capacity could supply clean electricity to more than 1 billion homes. India currently ranks third globally in clean energy capacity behind China and the United States, with just over 300 gigawatts installed.

To support this expansion, the Indian government approved nearly $20 billion in funding under its Green Energy Corridor plan. The funds are earmarked to upgrade transmission lines and expand battery storage infrastructure across the country. The initiative aims to help individual states absorb up to 135 gigawatts of renewable energy by 2033 by adding thousands of kilometers of grid capacity.

Grid bottlenecks and energy curtailment

Despite rapid growth in power generation capacity, India faces significant operational hurdles in delivering clean power to end users. Clean power accounted for 55% of the country’s installed capacity by late September, yet it generated only about one-third of actual electricity produced over the preceding three months. Over a 16-month period, the country was forced to curtail enough solar generation to power approximately 10 million homes because the power grid could not process the supply.

Experts stress that massive storage upgrades are necessary alongside grid expansion. While the government plan includes energy storage funding, researchers from the India Energy and Climate Center at the University of California, Berkeley estimate that India will need as much as 250 gigawatts of total storage over the next decade to smooth out supply fluctuations from wind and solar.

The ongoing role of coal

Coal remains the dominant energy source in India, generating about 71% of its electricity in 2025. Officials at the Central Electricity Authority indicate that the country might still require up to 150 gigawatts of extra coal-fired capacity by 2035 to meet growing demand and balance the intermittent nature of renewables.

Existing coal plants present additional grid challenges because many cannot rapidly reduce their output when solar and wind production spikes. However, researchers note that beyond roughly 35 gigawatts of coal projects currently under construction, building further coal plants may be economically unnecessary and risks creating stranded assets if renewable targets are met.

Implications for builders and investors

The transition offers major industrial opportunities, as cheap domestic electricity could replace expensive imported fossil fuels. However, analysts point to policy and supply chain risks that could deter private capital. Current market regulations limit direct sales between private power generators and private buyers, while cross-subsidies force businesses to pay higher electricity rates.

Economists argue that India must permit dynamic pricing based on supply and demand, alongside easing restrictions on foreign investment, as domestic funding will not cover the expansion. Furthermore, India remains heavily reliant on imported battery cells, primarily from China. Expanding domestic battery manufacturing will be critical for India to secure its supply chain and capture the full economic value of its energy transition.