India’s Renewable Energy Push Faces Major Grid and Policy Challenges
India’s Renewable Energy Push Faces Major Grid and Policy Challenges
India’s drive toward a green energy future is ambitious but faces serious roadblocks. According to experts at S&P Global Commodity Insights, major challenges like outdated infrastructure, complex regulatory frameworks, and financially stressed distribution companies are threatening to delay India’s energy transition.
Despite having crossed 200 GW of installed renewable energy capacity, India has set a much larger target — reaching 500 GW by 2030. However, experts caution that such a transition cannot happen without substantial investment in modern grid systems and energy storage technologies.
Eduard Sala de Vedruna, Head of Research for Energy Transition at S&P Global, stated,
“India continues to rely heavily on coal. While there is strong momentum toward solar and wind, success will require better infrastructure and smarter grid management.”
He also noted that investments in electric vehicles, smart meters, and energy-efficient solutions will play a crucial role in absorbing renewable energy smoothly into the national grid.
Rising Global Power Demand Adds Pressure
Jenny Yang, Global Head of Power and Renewables at S&P Global, highlighted a sharp rise in global energy needs. She estimated that power demand worldwide will grow by over 80% in the next 25 years, largely due to electrification in areas like data centers and urban infrastructure.
To meet this rising demand, renewables and battery storage are expected to dominate — making up 96% of net new power capacity globally by 2050. In India, the share of non-fossil fuel energy stood at 47% of capacity and 24% of actual power generation in 2024. These figures are projected to rise to 77% and 66% respectively by 2050.
Despite this, conventional thermal energy sources will still account for about 16% of global additions to ensure grid reliability.
Oil Demand Likely to Decline
The outlook for oil is also changing. S&P Global expects global oil demand growth to slow significantly, from 1.2 million barrels per day to just 0.8 million barrels per day, with some forecasts predicting flat or even negative growth later in the year. Rising energy efficiency and the adoption of cleaner alternatives are contributing to this trend.
