Pragmatic reforms needed to sustain renewable energy momentum: Eco Survey

New Delhi, Jan 29 (PTI) Challenges such as high capital costs, land acquisition delays, and grid availability need to be addressed through appropriate instruments, including innovative financing mechanisms and optimised project execution, to sustain India's renewable energy momentum, the Economic Survey said on Thursday.

The survey, tabled in Parliament, has also highlighted that prices of silver, an input material for solar panels, are likely to continue to increase due to its sustained demand as a safe-haven investment amid global uncertainties.

The survey said India's energy landscape is undergoing a structural transformation. The country maintains a dominant global presence, ranking third in overall RE capacity and installed solar capacity and fourth in installed wind capacity.

It has already surpassed the goal of 50 per cent installed power capacity from non-fossil fuel sources (stood at 51.93 per cent at the end of December 2025), supported by record annual additions of renewable energy capacity.

During 2025-26 (up to December 31, 2025), a total of 38.61 GW of renewable energy capacity has been installed in the country, which includes 30.16 GW of solar power, 4.47 GW of wind power, 0.03 GW of Bio-Power and 3.24 GW of hydro power.

To sustain India's renewable energy momentum, challenges such as high capital costs, land acquisition delays, and grid availability need to be addressed through appropriate instruments, including innovative financing mechanisms and optimised project execution.

Further, large-scale integration of Battery Energy Storage Systems (BESS) and Pumped Storage Hydropower (PSP) can address the inherent variability of renewables, ensure grid stability and peak-load management, and enable reliable, large-scale adoption of renewables to support the transition to a clean, secure, and resilient power system.

India has set a 500 GW non-fossil fuel-based capacity target.

The survey said renewable energy systems of solar and wind are highly material-intensive and require capital-intensive energy storage technologies for integrating renewable energy into the energy grid.

Solar panels with a power capacity of 1 GW require approximately 18.5 tonnes of silver, 2,000-3,000 tonnes of polysilicon, and 10,252 tonnes of aluminium, it added.

Prices of gold and silver are likely to continue increasing due to their sustained demand as safe-haven investments amid global uncertainties, the survey noted. PTI ABI ABI BAL BAL