India had more than 150 GW of renewable energy capacity under construction as of June 30, 2026, according to pv magazine, even as fresh tendering activity dropped to a fraction of its recent peak.
The auction slowdown is stark. Awarded renewable capacity fell to 14.7 GW in 2025-26 from 40.6 GW in 2024-25, pv magazine reported, and only 4.7 GW had been awarded in the current financial year as of August 10, 2026.
Offtake remains the bottleneck behind the awarded volumes. Unsigned power purchase agreement capacity stood at 40-45 GW as of April 2026.
Rating agency ICRA expects renewable energy, including large hydropower, to supply more than 35% of India's total electricity generation by 2029-30, up from 22% in 2024-25, pv magazine reported. That trajectory rests on the construction pipeline clearing rather than on new awards.
Grid congestion is already cutting into output at specific nodes. Around 37% of the capacity at impacted substations in North, West and South India operates under transmission general network access and faces curtailment of 30-50% during solar hours, according to ICRA's Girishkumar Kadam, cited by pv magazine.
Storage procurement has moved faster than the generation auctions it is meant to support. Total awarded battery energy storage system capacity in India, counting both under-construction and operational projects, reached around 90 GWh as of June 2026, pv magazine reported.
On cost, ICRA estimates the levelized cost of storage for two- to four-hour BESS projects at INR 4/kWh to INR 7/kWh, against around INR 5/kWh for pumped storage hydropower, according to pv magazine. The overlap in those ranges leaves pumped hydro competitive at the longer end of the battery cost band.
The gap between the 150 GW under construction and the 4.7 GW awarded so far this financial year sets up a build-out concentrated in projects already contracted, with grid access and storage readiness determining how much of that capacity earns full output.