India may pause solar capacity addition due to grid, storage woes

India may have to temporarily pause adding renewable capacity, especially solar, due to two main roadblocks: the inability to provide long-term grid connectivity and a near-total lack of storage capacity (batteries or pumped storage). The Central Electricity Authority estimates the country needs 888 GWh of storage by 2035 but currently has only a fraction.

The mismatch between solar plant setup (18 months) and transmission line construction (36 months) has left many generators ready but unconnected. During solar hours, supply exceeds demand, forcing curtailment of renewable generation for grid stability, about 2 billion units were curtailed in 2025. Coal plants cannot back down below 55-40% capacity without risking damage, a matter of ongoing debate between generators and the government.

Solar generators are demanding compensation for backed-down power, but payments depend on power purchase agreements and can involve lengthy legal battles. Storage projects face viability issues as market-determined prices from competitive bidding are seen as non-remunerative, raising doubts about their completion.