India must accelerate its deployment of renewable energy and battery storage to meet rising electricity demand by 2030 while avoiding power shortages and excessive reliance on coal, according to a new report by the Council on Energy, Environment and Water.
The report outlines six scenarios based on different levels of demand growth and RE adoption, concluding that a pathway with 600 gigawatts of non-fossil capacity is the most cost-effective and reliable. However, current deployment trends indicate India is falling short of its clean energy targets.
“As India progresses toward 2030, renewable energy and storage will be the most cost-effective options to avoid power shortages,” the report stated, noting that achieving a high RE scenario could lower system costs by as much as ₹42,400 crore ($5 billion) compared to a lower pathway.
Challenges in Clean Energy Expansion
Despite India’s ambitious clean energy targets, the report highlights significant challenges, including grid flexibility constraints, slow transmission expansion and uncertainty in RE generation due to seasonal variations.
Policymakers remain hesitant to phase out coal, fearing potential energy shortfalls. Over 30 GW of coal-fired power capacity is currently under construction, with new thermal projects being planned to bridge possible demand gaps.
“Policymakers tend to bet on new coal-based capacity, but this risks fossil fuel lock-ins and negative environmental impacts,” the study warns. It advocates investment in battery storage, flexible coal plant operations and demand-side management strategies to stabilize the grid.
Economic and Environmental Benefits of High-RE Pathway
The report argues that a high-RE transition would cut carbon emissions, generate employment and attract significant investment. The study estimates that a high-RE scenario could create between 53,000 and 101,000 additional full-time jobs compared to lower renewable deployment levels.
Furthermore, reduced reliance on coal could lower India’s import dependency. The coal requirement for power generation is expected to drop to 700-766 million tonnes under a high-RE scenario, compared to 950-1,000 million tonnes in a low-RE pathway.
Urgent Policy Measures Required
To meet its 2030 clean energy goals, India must deploy approximately 56 GW of non-fossil capacity annually — far exceeding its current pace. The report calls for stronger policy incentives, enhanced transmission infrastructure and market mechanisms to accelerate renewable integration.
“The energy transition must balance economic growth, environmental sustainability and social equity,” said the report’s authors, urging the government to take immediate action to ensure energy security while reducing emissions.
India has committed to reaching 500 GW of non-fossil capacity by 2030 as part of its climate commitments under the Paris Agreement. However, achieving this target will require a substantial policy push, investments in grid modernization and improved energy storage solutions.
