New Delhi: India’s federal government is intensifying efforts to persuade state governments to purchase more clean energy as a growing surplus threatens to slow the nation’s renewable energy ambitions. Federal Minister Pralhad Joshi highlighted the urgency during the Confederation of Indian Industry’s energy conference, noting that state-run utilities have been delaying purchases while waiting for power prices to fall further. “We are trying to convince state governments… a second round of talks will be held soon,” Joshi said.
Government data indicates that more than 44 gigawatts of renewable energy remain unsold, largely due to the reluctance of state power utilities to commit to existing supply agreements. The surplus underscores a disconnect between India’s ambitious renewable energy targets and the pace at which states are procuring power. Analysts warn that if this hesitation continues, it could stall the deployment of solar, wind, and other renewable projects already in the pipeline.
In response, the Ministry of Power has introduced several regulatory and procedural measures aimed at streamlining clean energy sales. Central renewable energy pricing pools, initially designed to stabilize prices, have been scrapped to enable faster power purchase agreements. Additionally, new rules require electricity distribution companies to seek approval from the relevant regulatory commission within 30 days of signing contracts with intermediaries involved in clean energy projects. These steps are intended to reduce delays and ensure smoother integration of renewable energy into the national grid.
Despite federal initiatives, challenges remain at the state level. Infrastructure constraints, a continued reliance on fossil fuels, and bureaucratic delays in signing contracts are slowing progress. Industry stakeholders have repeatedly called for faster action, warning that stalled procurements threaten not only project viability but also India’s broader clean energy targets for 2030.
As the federal government prepares for further consultations with state authorities, the coming months are expected to be critical. Accelerating state-level clean energy purchases will be essential for India to harness its renewable energy potential, reduce reliance on fossil fuels, and meet its international climate commitments. How quickly states respond could determine whether India’s clean energy sector maintains its momentum or faces prolonged bottlenecks.