India’s progress toward clean energy could be at risk as the pace of renewable energy auctions has slowed sharply this year.
According to Icra Research, only 40.2 GW of renewable capacity was auctioned in FY25, a drop from the record 47.3 GW in FY24. Even more worrying, only 3.4 GW has been auctioned in the first half of FY26, compared to 19 GW during the same period last year.
Industry experts say this slowdown could cause a dip in solar and wind installations from 2027, making it harder for India to meet its ambitious goal of 500 GW of non-fossil fuel capacity by 2030.
The decline in auctions is linked to delays in signing power purchase and sales agreements, which are critical for developers to move forward with new projects.
Still, the sector isn’t without hope. India added a record 20.1 GW of new renewable capacity between April and August this year, driven by lower solar module prices. Analysts expect installations to exceed 35 GW by the end of this financial year, another record high.
Additionally, the recent 7% cut in GST on renewable components is expected to reduce project costs and encourage more utilities to sign agreements.
Officials say India’s new Nationally Determined Contributions (NDCs), to be presented to the UN in November, will set even more ambitious clean energy targets for 2035, but industry insiders warn that the slowdown in bidding must be reversed soon to stay on track.
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