Ratul Puri on Powering India's Next Energy Transition Phase

Ratul Puri believes India has made remarkable progress in expanding its renewable energy capacity. But the easy part is behind us. The real challenge is now underway, which is integrating a larger share of variable renewable power into a grid that was built for stable, dispatchable supplies. The next phase of transition will be defined not by how much solar and wind capacity gets added, but by how effectively the grid absorbs, balances and dispatches that power.

In early 2026, India's power sector crossed a significant milestone, surpassing the 52% mark in installed capacity from non-fossil fuel sources. The share of actual generation from renewable sources reached nearly 30% in FY2024-25. While encouraging, higher generation brings a distinct set of operational challenges that cannot be ignored.

The first phase was relatively straightforward, driven by rapid capacity addition, falling costs, strong policy support and positive market momentum. Now, as renewable penetration deepens, the system must manage intermittency, demand mismatches and growing balancing requirements.

The Challenges Ahead

A closer look at what Ratul Puri outlines reveals several layers of difficulty. One of the most pressing issues is that generation capacity has outpaced transmission and evacuation capacity. Rajasthan is a clear example. The state has 23 GW of commissioned renewable capacity but can evacuate only 18.9 GW. This means over 4,000 MW of commissioned capacity sits stranded during peak hours. High-capacity double-circuit corridors built to handle around 6,000 MW are frequently running at just 600 to 1,000 MW.

Storage remains another significant barrier. By 2032, India will require approximately 411 GWh of energy storage capacity to maintain grid stability during periods without sunshine. Current deployments of Battery Energy Storage Systems and Pumped Hydro Storage fall far short of what is needed.

Supply chain vulnerabilities add further pressure. India depends heavily on imports of critical minerals such as lithium, cobalt and rare earths, as well as raw materials needed for manufacturing solar cells and batteries. This dependency leaves the sector exposed to global supply disruptions.

Technology and infrastructure gaps compound the problem. Ratul Puri notes that studies indicate the current grid lacks the capacity to accommodate a higher share of intermittent renewables. Substantial investment in smart grids, energy storage and hydrogen systems will be required to sustain reliability and stability. In areas like hydropower and bioenergy, being a water-scarce nation adds another layer of complexity, requiring sophisticated water management systems.

Financial and policy uncertainties round out the challenges. Since electricity is a concurrent subject in India, both the Centre and states operate under their own specific policies, which can affect how effectively renewable potential is tapped. And while the energy mix spans solar, wind, biomass, hydrogen and hydroelectricity, the vast majority of investment continues to flow into solar alone.

What Ratul Puri Says Needs to Happen

Addressing these constraints calls for a coordinated set of measures. Supply balancing through flexible generation and ancillary services is one important avenue. Better forecasting of both renewable demand and generation will enable more systematic scheduling and improved demand-side management.

The real financial barrier, as Ratul Puri argues, is not the cost of renewables themselves but the investment required to transmit and integrate large volumes of solar and wind power. Even though solar and wind are among the cheapest electricity sources available, sustained investment is essential to modernise the grid while adding the storage and transmission infrastructure needed.

Curtailment practices also need reform. During periods of peak congestion, power curtailments should be distributed proportionately across all generators rather than placing the entire burden on Temporary General Network Access projects. Unused or underutilised grid capacity should be reallocated through real-time, transparent protocols so that available evacuation space is not wasted.

Better coordination between CTUIL and GRID-India is equally important, ensuring that transmission corridors with predetermined capacities translate into actual, usable power evacuation. These steps would bring stranded assets worth billions into productive use.

The Road Ahead

The next growth push for renewable energy, in Ratul Puri's view, will come from hybrid projects, Firm and Dispatchable Renewable Energy, round-the-clock solutions, and integrated renewable energy systems rather than standalone capacity additions. Ratul Puri concludes that India's power transition will ultimately depend far more on system integration than on capacity addition alone.

About Ratul Puri

Ratul Puri is the Chairman of Hindustan Power, an integrated power generation company with a strong presence in renewable and transitional energy. Over the years, he has been involved in the development of large-scale energy infrastructure projects that support India’s growing power requirements and its transition toward cleaner energy sources.

About Hindustan Power

Hindustan Power is an integrated power generation company focused on renewable and transitional energy. The company has been actively contributing to India’s energy transformation through the development of solar power and other energy infrastructure projects.