As India gears up for Budget 2026, leaders in the renewable energy sector are advocating for a significant emphasis on grid infrastructure and energy storage solutions to facilitate the nation's transition to clean energy. These leaders argue that the next phase of growth needs to prioritize system stability and long-term sustainability, moving beyond simply setting installation targets.
With India aiming for 500 GW of renewable energy capacity, industry experts are urging the Union Budget 2026-27 to substantially increase support for transmission infrastructure, energy storage, green finance, domestic manufacturing, and emerging clean fuels. In 2025, India added approximately 48-50 GW of renewable capacity with investments around ₹2 lakh crore, bringing the country's total non-fossil fuel capacity to about 263 GW.
One of the primary concerns is the readiness of grid and transmission infrastructure. Chandra Kishore Thakur, Global CEO of Sterling and Wilson Renewable Energy Group, stresses the necessity for faster regulatory approvals and stronger evacuation planning to support large-scale renewable deployment. He suggests that enhanced budgetary support for transmission line development and single-window clearances are crucial for aligning execution timelines with national targets.
Energy storage is also highlighted as a critical priority. Debmalya Sen, President of the India Energy Storage Alliance, points out that while solar manufacturing has gained traction, the focus must now shift to system resilience. Sen emphasizes the importance of local manufacturing of Battery Energy Storage Systems (BESS) to support grid stability and increased renewable penetration, calling for clearer tender visibility and long-term fiscal incentives to attract investment in this area. Gyanesh Chaudhary, Chairman and Managing Director of Vikram Solar, also stated that to support a resilient, low-carbon and technologically advanced energy future, Budget 2026 must address critical areas such as energy storage and grid flexibility, supply-chain localization, demand-side digitalization and export competitiveness. Citing Central Electricity Authority (CEA) projections, Chaudhary noted that India's energy storage requirement is expected to rise five-fold—from about 82 GWh in 2026–27 to over 411 GWh by 2031–32.
Echoing this sentiment, Sunil Rathi, Executive Director of Waaree Energies Limited, views the Union Budget 2026 as a pivotal opportunity to transition India into the next phase of its clean energy journey, positioning energy storage as central as generation itself. Rathi believes policy support is essential across three core pillars: deeper support for vertically integrated manufacturing (spanning solar, batteries, and energy management systems), building resilient domestic supply chains, and reducing import dependence.
To enhance forecasting and assist grid operators, Artificial Intelligence (AI) is being used to convert weather and climate data into practical insights for renewable energy systems. AI systems can improve the precision of forecasts by examining extensive datasets obtained from climate models, satellite imagery, and historical weather data.
Looking ahead, industry stakeholders are seeking stronger Energy Storage Obligations, fiscal incentives for storage deployment, and extensions of Production Linked Incentive (PLI) schemes to future-ready technologies and critical minerals. Support for digital energy platforms to efficiently manage grid stress and demand is also a key request. Additionally, stakeholders have urged the government to focus on targeted tax reforms, faster viability gap funding (VGF) disbursements, additional funding for residential rooftop solar, improved access to long-term and affordable green finance, and a stronger push for circular economy initiatives and grid modernization.
Overall, the renewable energy sector is unified in its call for Budget 2026 to prioritize grid infrastructure and energy storage, paving the way for a sustainable and resilient energy future.
