India's renewable energy transition is entering a more complex phase. While the country's focus was once on adding capacity, the conversation has now shifted towards building an integrated energy system capable of reliably delivering clean power at scale. As India works towards its target of 500 GW of non-fossil fuel capacity by 2030, challenges around transmission, energy storage, grid flexibility, land availability and execution are becoming as critical as renewable generation itself.
In an interaction with BW Businessworld, Deepak Thakur, MD & CEO, Hinduja Renewables, discusses the evolving dynamics of India's renewable energy sector, the growing role of battery and pumped storage, the economics of clean energy, rising demand from commercial and industrial consumers, the push for domestic manufacturing, and Hinduja Renewables' long-term growth strategy. He also shares his perspective on the policy reforms needed to accelerate India's energy transition while ensuring sustainable value creation.
India has set a target of achieving 500 GW of non-fossil fuel capacity by 2030. What are the biggest execution bottlenecks in achieving this goal?
The conversation around India's renewable energy transition has evolved significantly over the past few years. Earlier, the focus was largely on adding renewable capacity. Today, the bigger challenge is building an energy system that can reliably absorb and utilise that capacity. In my view, the bottlenecks are no longer primarily about technology but about synchronising multiple elements of the ecosystem. Generation, transmission, energy storage, land availability, grid connectivity and regulatory approvals all need to progress in parallel. If even one of these elements falls behind, the entire project lifecycle can be delayed. Equally important is execution discipline. The sector today has access to capital, technology and a capable developer ecosystem. The real differentiator is the ability to consistently deliver projects on schedule, maintain quality standards and operate assets efficiently throughout their economic life.
As renewable penetration increases, storage and grid flexibility will become integral to the country's energy transition. The objective is no longer just to generate clean electricity, but to ensure that it is available when consumers actually need it. At Hinduja Renewables, this understanding shapes our growth strategy. Alongside expanding our renewable energy portfolio, we are investing in storage, digital asset management and operational excellence. We believe these capabilities cannot be viewed in isolation. Long-term value creation will come from integrating renewable generation with storage, technology and efficient operations to build a resilient and dependable energy system.
Battery energy storage is moving from the pilot stage to commercial deployment in India. Are the economics finally working, or does the sector still depend heavily on policy support?
It is important to broaden the discussion beyond battery energy storage alone. India's storage ecosystem will be built on two complementary technologies—Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP). BESS is well suited for applications such as peak shaving, renewable energy firming and ancillary grid services, while pumped storage provides long-duration energy storage that strengthens grid stability and enables higher renewable energy penetration. Both technologies are essential for the evolution of India's power system. The sector has clearly moved beyond the pilot phase. According to the National Electricity Plan, India will require nearly 74 GW/411 GWh of battery storage and around 56 GW of pumped storage by 2031-32, underlining the scale of storage needed to support the country's renewable energy ambitions.
Policy support, however, continues to play a catalytic role. Measures such as the viability gap funding scheme for BESS, the ACC Production Linked Incentive (PLI) scheme, ISTS charge waivers and competitive procurement by central and state agencies have helped build confidence and accelerate adoption. As the ecosystem matures and costs continue to decline, storage will increasingly be driven by commercial value rather than policy support alone, much like the evolution of solar photovoltaics. At Hinduja Renewables, we view storage as an integral part of the future energy system rather than an adjacent opportunity. Alongside renewable generation, we are developing capabilities across BESS and are exploring nearly 11 GW of pumped storage opportunities, with around 2.5-3 GW already in advanced stages of development. This integrated approach will enable us to deliver cleaner, more reliable and more flexible energy solutions as market demand continues to grow.
Renewable energy tariffs have become increasingly competitive. How can developers protect profitability amid aggressive bidding and rising equipment costs?
The renewable energy sector has always been competitive. Having been in this industry for nearly 17 years, I would say that what has changed is not the intensity of competition but the basis on which companies compete. Today, sustainable profitability is determined less by the tariff itself and more by how efficiently a project is developed, executed and operated over its entire lifecycle. Developers will have to optimise every stage of the value chain—from engineering, procurement and financing to construction, operations and digital asset management. Better project planning, disciplined capital allocation, resilient supply chain partnerships and operational excellence will become even more important in protecting long-term returns as the sector continues to mature.
At the same time, the industry has a shared responsibility to ensure that price discovery remains prudent and sustainable. Competitive bidding has made renewable energy increasingly affordable, but tariffs must also reflect project risks, financing realities and the long-term responsibility of delivering reliable power. The objective should not simply be to discover the lowest tariff, but to ensure that awarded projects remain bankable, are executed on time and continue delivering dependable clean energy over their 25-year operating life. At Hinduja Renewables, we are focused on disciplined growth rather than growth at any cost. Every project must make commercial sense while creating long-term value for customers, investors and other stakeholders. We believe sustainable value creation comes from balancing competitiveness with execution excellence, financial discipline and operational reliability.
Demand for green power from commercial and industrial (C&I) consumers is rising rapidly. Are these customers now driving growth more than utility-scale government tenders?
I do not see this as a choice between utility-scale projects and the commercial and industrial (C&I) segment because both are essential to India's renewable energy growth story. Utility-scale projects will continue to provide the capacity required to achieve the country's renewable energy targets, while the C&I market has emerged as a powerful growth engine over the past few years. By some estimates, nearly 25–30 per cent of India's annual renewable capacity additions are now being driven by the C&I segment, and this share is expected to increase as more industries and commercial establishments pursue decarbonisation, energy cost optimisation and their own sustainability commitments. Customer expectations have also evolved. Earlier, discussions were centred largely around reducing electricity costs. Today, customers are equally focused on energy security, price certainty, ESG goals and operational resilience, creating demand for integrated renewable energy solutions that combine generation, storage and intelligent energy management.
Another important enabler has been the proactive role played by several states. Open access policies, banking mechanisms, wheeling and transmission charges, along with the efficiency of local approvals, significantly influence the pace of C&I renewable adoption across different regions. States with supportive regulatory frameworks are likely to attract greater investment and accelerate customer adoption. At Hinduja Renewables, we are investing across both utility-scale and C&I businesses because we believe they are complementary pillars of long-term growth. As we diversify across technologies and expand our renewable portfolio, maintaining a balanced presence across these two segments will remain central to our strategy and our contribution to India's energy transition.
Q. India is pushing to strengthen domestic manufacturing across the clean energy value chain. How do you see the balance between localisation and cost competitiveness evolving over the next five years?
Deepak Thakur, MD & CEO, Hinduja Renewables: The strategic direction towards strengthening domestic manufacturing is absolutely the right one. It enhances energy security, improves supply chain resilience and helps build long-term industrial capability. However, I believe the conversation now needs to evolve beyond simply 'Made in India' to 'Built to Power India'. The objective should not only be to manufacture more components domestically, but also to build renewable energy assets that remain reliable, efficient and bankable throughout their operating life. Renewable energy projects are long-term infrastructure assets expected to perform for 25 years or more. Therefore, localisation and cost competitiveness must go hand in hand with quality, technology maturity, manufacturing consistency and long-term reliability. Ultimately, developers, lenders and customers are investing in performance over decades, not just in equipment at the time of commissioning.
The encouraging aspect is that Indian manufacturers have made significant progress in a relatively short period. As manufacturing capacity expands, scale improves and technology continues to evolve, India has the potential to become not only one of the world's largest renewable energy markets but also a globally competitive manufacturing hub. At Hinduja Renewables, we fully support this transition. Our approach is to build renewable assets that combine the strengths of domestic manufacturing with long-term operational performance. We believe this balance will create enduring value for customers while strengthening India's position in the global clean energy ecosystem.
What will be the key focus areas of Hinduja Renewables' expansion strategy over the next five years, and which technologies are likely to attract the highest investment?
Our strategy is centred on building a diversified renewable energy business rather than pursuing growth through a single technology or market segment. Under our Mission 10 by 2030 roadmap, we are working towards building a 10 GW renewable energy and storage platform by the end of the decade. While solar will continue to be a key growth driver, we also see significant opportunities in wind, hybrid projects and integrated renewable energy solutions. Storage will remain a major area of investment. We are actively developing capabilities across Battery Energy Storage Systems (BESS) and are exploring nearly 11 GW of pumped storage opportunities, of which around 2.5–3 GW is already in advanced stages of development. We believe both battery and pumped storage will become essential differentiators, not only for Hinduja Renewables' growth but also for India's broader energy transition.
Equally important is what happens after an asset is commissioned. In our view, operational excellence will increasingly differentiate renewable energy companies over the long term. That is why we are investing in digitalisation, data analytics and intelligent asset management to improve efficiency, reliability and asset performance throughout their lifecycle. Our objective is not simply to add capacity but to build a business that combines disciplined growth with dependable execution while remaining responsive to evolving customer requirements. As the renewable energy ecosystem matures, long-term success will depend on integrating generation, storage and technology-driven operations into a resilient and future-ready business model.
If you had to identify one policy reform that could significantly accelerate India's renewable energy transition, what would it be and why?
If I had to identify one priority, it would be creating a more integrated and time-bound project development framework. Today, critical aspects such as land acquisition, statutory approvals, transmission readiness and grid connectivity often progress on different timelines. Better coordination across these elements would significantly improve execution efficiency and reduce uncertainty for long-gestation infrastructure projects. Predictability is extremely valuable for the sector. It enhances investor confidence, supports financing, lowers development costs and enables faster project execution. As India's renewable energy ambitions continue to grow, a more streamlined and coordinated project development process will become increasingly important.
India has already demonstrated strong policy intent in driving the rapid growth of renewable energy. The next opportunity lies in making project execution more seamless and predictable across the entire value chain. Such an approach would not only accelerate capacity addition but also improve the overall quality and efficiency of the country's energy transition. India is already among the world's largest renewable energy markets, and further strengthening execution frameworks can help unlock the next phase of sustainable growth while ensuring projects are delivered on time and perform reliably over the long term. |
