PPA and Transmission Delays Slow India’s Renewable Energy Awards: ICRA.

Stronger PPAs, Transmission and Storage Needed to Sustain India’s Renewable Growth.

India’s renewable energy project awards are slowing due to delays in signing Power Purchase Agreements (PPAs) and inadequate transmission infrastructure, according to ratings agency ICRA. After a record 40.6 GW of renewable capacity was awarded in 2024-25, awards declined to 14.7 GW in 2025-26 and 4.7 GW till August 10 this year. Around 40–45 GW of renewable projects are still awaiting PPAs, while transmission capacity has struggled to keep pace with new generation projects. Increasing grid curtailment, particularly for projects operating under temporary General Network Access (T-GNA), is also affecting project returns. ICRA said India has more than 150 GW of renewable projects under construction, providing a strong pipeline for future capacity additions. However, timely transmission expansion and greater energy storage capacity will be essential. The agency also highlighted falling battery costs, viability gap funding and transmission-charge waivers as factors supporting Battery Energy Storage System (BESS) adoption.