Union finance minister Nirmala Sitharaman addresses the media regarding the 56th GST Council meeting, in New Delhi, Wednesday, September 3, 2025. Image: PTI
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Firstpost21-01-2026, 12:40

Budget 2026: Renewable Sector Demands Grid, Storage Fixes Amid Bottlenecks

  • India's renewable energy sector shifts focus from capacity addition to fixing transmission, storage, and grid stability issues for future growth.
  • Despite achieving 262 GW non-fossil capacity, structural stress points like renewable curtailment are impacting project activity and investor confidence.
  • Industry experts emphasize the need for strengthening T&D infrastructure and storage capacity, particularly battery energy storage systems and pumped hydro, to ensure grid stability.
  • Payment delays by state-owned distribution companies (discoms) remain a key concern, with calls for higher budgetary support for distribution reforms and smart metering.
  • The sector seeks new financing models, a dedicated renewable energy fund, and government-backed risk mitigation frameworks to boost investor confidence and address payment issues.

Why It Matters: Budget 2026 must prioritize grid resilience, storage, and discom financial health for India's renewable energy future.

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