India’s Green Energy Paradox: 44 GW Renewables Idle | UPSC Current Affairs 2025

India has emerged as a global leader in renewable energy, yet it faces a paradox: nearly 44 GW of installed renewable capacity remains underutilized. According to reports, this capacity—largely from solar and wind power—is ready to supply energy but lacks adequate demand, transmission infrastructure, and policy incentives. This paradox highlights the gap between India’s renewable energy targets and the realities of energy distribution.

Key Highlights

• Installed Capacity: India’s total renewable energy capacity is over 190 GW (as of 2025), including solar, wind, biomass, and small hydro.
• Unused Capacity: About 44 GW remains idle due to grid constraints and poor demand absorption.
• Policy Goal: India aims for 500 GW of non-fossil fuel capacity by 2030 under its Nationally Determined Contributions (NDCs) to the Paris Agreement.
• Major Challenge: Lack of transmission lines, storage solutions, and competitive tariffs.

Reasons Behind the Paradox

1. Transmission Bottlenecks – Renewable projects are often located in remote regions (Rajasthan, Gujarat, Tamil Nadu) where grid connectivity is weak.
2. Financial Stress in DISCOMs – State distribution companies avoid buying renewable energy due to cost concerns.
3. Storage Limitations – Lack of battery storage solutions prevents round-the-clock renewable supply.
4. Policy & Incentives Gaps – Delay in green hydrogen incentives, lack of clarity in carbon pricing, and slow renewable purchase obligations (RPOs).

Significance for UPSC

• GS Paper III (Environment, Energy Security): Renewable energy policy, infrastructure bottlenecks, sustainable growth.
• GS Paper II (Governance): Role of states, DISCOM reforms, and cooperative federalism in energy policy.
• Essay/Interview: Balancing growth with sustainability, India’s climate leadership vs. ground realities.

Way Forward

• Strengthen Green Energy Corridors for better transmission.
• Promote battery storage technologies and hybrid energy parks.
• Reform DISCOM finances under the Revamped Distribution Sector Scheme (RDSS).
• Incentivize industries through carbon trading, green hydrogen missions, and renewable purchase obligations.

Practice Question for UPSC

Q. India has installed a significant renewable energy capacity, yet a large portion remains unutilized. Discuss the reasons for this paradox and suggest measures to overcome it. (250 words)