pv magazine: India has set ambitious renewable energy targets for 2030. What do you think are the biggest bottlenecks in scaling up renewable energy projects today?
Ratul Puri: We see India’s renewable sector shifting from rapid capacity expansion to more coordinated optimization at the system level. Although the country has already exceeded 50% non-fossil installed capacity, the next phase of growth will depend on execution at scale, including progress in land acquisition, leasing frameworks and forest clearing.
Transmission readiness must keep pace with the expansion of generation. Delays in network construction are starting to impact parts of the renewable pipeline, even as capacity continues to grow. DISCOMs’ financial health and timely procurement decisions also remain important to maintain momentum.
The next phase of the expansion of renewable energy sources will require closer coordination between generation capacity, transmission infrastructure and long-term demand planning.
With the rollout of the Carbon Credit Trading Scheme (CCTS), how do you think carbon markets will influence investment decisions in the renewable energy sector?
The rollout of the Carbon Credit Trading Scheme is an important development in India’s clean energy transition. It creates an additional economic value stream for projects that contribute to emission reduction and energy efficiency, in addition to conventional energy revenues.
The scheme is expected to be particularly relevant for hard-to-fight sectors such as steel and cement, where clean energy adoption can support compliance requirements and decarbonisation targets. This could also boost investor interest in renewable energy, storage-based assets and 24-hour green power solutions. The long-term effectiveness of the market will depend on transparent frameworks, credible verification mechanisms and stable pricing.
Energy storage is increasingly seen as crucial for the integration of renewable energy sources. How do you assess the pace of battery storage adoption in India? What policy or market changes are still needed?
The Indian battery energy storage systems (BESS) market is transitioning from aggressive procurement to execution-oriented scale. In 2025 alone, approximately 102 GWh of tenders were issued, while operational capacity is still at an early stage, reflecting the sector’s movement from bidding momentum to project delivery.
Policy support through viability gap financing, ISTS fee waivers, and state-level mandates have helped make storage an accepted asset class. As projects move towards commissioning, the industry’s focus shifts from rate discovery to execution capacity.
The sector’s cost environment is also becoming more sensitive to global geopolitical shifts. Disruptions in supply chains, volatility in commodity prices and logistics challenges could lead to higher input costs, which could translate into higher battery prices. The next phase of growth requires expanding revenue streams to include ancillary services, peak load management and grid balancing. Financing models are also expected to evolve further, supported by greater regulatory clarity and better commercial visibility.
Given the recent volatility in global supply chains and module pricing, how should Indian developers balance cost competitiveness with domestic production targets?
The strategy of balancing cost competitiveness with domestic production targets is becoming increasingly important for Indian developers. The emphasis is not only on short-term pricing, but also on long-term security of supply and resilience.
Policies such as ALMM and PLI have significantly strengthened domestic manufacturing capacity. Module production capacity has increased from 2.3 GW in 2014 to approximately 171 GW in 2025, while cell production capacity has been expanded to 31 GW. As domestic production continues to scale up, the cost gap is expected to narrow. This can help ensure localization is both commercially viable and strategically beneficial for developers.
What are Hindustan Power’s key priorities for the next phase of growth, and how do you see the company positioning itself within the rapidly evolving renewable energy and storage market in India?
At Hindustan Power, we are focused on balancing reliability and future-proofing. Since storage is an important factor for grid stability and renewable energy integration, the sector is likely to witness strong investment momentum until 2030.
In line with this, we are scaling up our BESS portfolio, with more than 750 MWh of capacity added to projects by 2025. This includes our project with Solar Energy Corp. from India (360 MWh), an ISTS-linked project with SJVN Limited (>250 MWh) and a standalone BESS project of 120 MWh with Bihar State Power Generation Co. Ltd. Together, these enable robust, dispatchable renewable energy while supporting grid stability and peak demand.
Our approach includes renewable and highly efficient transition energy generation and helps build a diversified, resilient and future-proof energy portfolio with a gradually decreasing dependence on coal. Furthermore, we continue to play an active role in public-private partnerships and policy discussions, contributing to the regulatory evolution needed to help India achieve its target of 500 GW of non-fossil capacity by 2030.
Recent auctions for standalone battery storage projects saw strong participation from bidders (including new players) and discovered record low rates. What is your opinion on this??
The strong participation in recent BESS auctions reflects growing confidence in the sector, driven by falling battery costs, supportive policy frameworks and increased competition. This marks a meaningful step toward scaling storage capacity and strengthening network reliability.
However, with the current geopolitical dynamics, the industry may witness a sudden increase in input costs, impacting battery pricing due to supply chain disruptions. This evolving environment introduces a layer of complexity while reinforcing the need for disciplined bidding, resilient purchasing strategies and a sharper focus on execution.
How do you see the energy storage landscape evolving in India?
As the country targets 500 GW of non-fossil fuel capacity by 2030, energy storage is no longer seen as an optional add-on, but as a critical requirement for grid stability and 24-hour renewable energy.
One of the key shifts is the sharp increase in BESS capacity, which is expected to increase significantly from current levels as projects move from procurement phase to implementation. The focus in the sector is now shifting from tender announcements to actual project delivery, with large utility-scale installations and hybrid renewable projects gaining momentum. Solar-plus-storage projects and Firm and Dispatchable Renewable Energy (FDRE) tenders are becoming more common, reflecting the need for reliable 24×7 clean energy.
Government support remains a strong growth engine. Measures such as viability gap financing (VGF), energy storage obligations (ESO) and production-linked incentive schemes (PLI) for advanced chemical cells improve project economics and boost domestic production.
With strong momentum, current geopolitical developments and dependence on imported battery components could also impact prices and timelines. Going forward, the sector’s success will depend on resilient supply chains, stronger execution capabilities and the ability to build high-quality assets that support a reliable and always-available sustainable energy system.
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