NEW DELHI: India's transition toward clean energy sources is accelerating, with non-fossil fuels contributing significantly to the installed power capacity. However, the latest Economic Survey has identified several critical challenges that could impede further expansion. High capital costs, delays in land acquisition, and limited grid availability are emerging as key obstacles to scaling up renewable energy infrastructure across the country.
Material and Storage Constraints
The report emphasizes that renewable energy systems, including solar and wind power, are highly material-intensive. They require advanced, capital-intensive energy storage technologies for effective grid integration. According to the survey, material requirements and storage solutions represent the two primary constraints to broader adoption of clean energy sources.
This material challenge extends beyond mere access to critical minerals. It encompasses the entire supply chain, from mining operations to the energy-intensive processes needed for material refinement and manufacturing. The implications for India's mining sector and overall energy consumption are substantial, requiring careful planning and resource management.
Record Growth in Clean Energy
India achieved a landmark year in its clean energy journey during 2025, with non-fossil fuel sources adding an impressive 49.2 gigawatts of capacity. This remarkable growth brought the total renewable energy capacity to 266.8 GW, representing a substantial 22.6% increase from the 217.6 GW recorded in 2024.
To sustain this momentum and reach the ambitious target of 500 GW of non-fossil energy capacity by 2030, the survey underscores the need for innovative financing mechanisms and more efficient project execution strategies. These elements are crucial for maintaining the current pace of development in the renewable energy sector.
Energy Storage Requirements
Ensuring supply stability, particularly during periods of peak electricity demand, requires large-scale deployment of advanced storage technologies. The survey specifically recommends battery energy storage systems and pumped storage hydropower as essential components of India's energy infrastructure.
These technologies enable the storage of excess electricity generated during periods of high renewable output, allowing for its release during peak demand hours. This capability is fundamental to achieving reliable, large-scale adoption of renewable energy sources throughout the national grid.
However, implementing such storage solutions involves substantial investment. According to projections from the Central Electricity Authority, India will require approximately 336 gigawatt-hours of energy storage capacity by 2029-30, with this need increasing to 411 gigawatt-hours by 2031-32.
Strategic Mineral Dependencies
The survey highlights specific metals that represent strategic chokepoints in the low-carbon transition. Lithium, cobalt, nickel, copper, and rare earth elements are identified as critical materials that will shape both India's energy security and its broader transition to cleaner energy sources.
Access to these minerals, along with developing domestic processing capabilities, will be essential for reducing dependence on international supply chains and ensuring the sustainability of India's renewable energy expansion.
Data Sharing and Economic Opportunities
The Economic Survey calls for improved sharing of power-related data among utilities, regulators, and other stakeholders through the India Energy Stack, which was launched in 2025. Enhanced data transparency and accessibility can facilitate better planning, coordination, and optimization of renewable energy integration into the national grid.
Beyond technical and financial considerations, the document notes that India's renewable energy transition holds significant potential for economic development. It can create numerous livelihoods and income opportunities for millions of small energy producers, contributing to broader social and economic benefits across the country.
The successful navigation of these challenges will determine India's ability to meet its clean energy targets while ensuring energy security, economic growth, and environmental sustainability for future generations.
