India could save ₹2.27 lakh crore in power system cost by relaxing renewable energy “build limits” by 50 per cent, according to a study by the All India Discoms Association (AIDA).

At a wind industry conference held in Goa recently to mark Global Wind Day, Alok Kumar, Director General, AIDA, and former secretary, Ministry of Power, said current power-sector planning assumptions place limits on the pace at which new renewable energy capacity can be added. Relaxing these “build limits” by 50 per cent would enable faster deployment of renewable energy projects and lower the overall system cost, he said.

Build limits are assumptions used in power-system planning models to cap new generation capacity over a given period. The limits reflect factors such as project development timelines, supply-chain constraints, availability of land and transmission infrastructure, and the sector’s ability to absorb new capacity additions.

According to Kumar, a 50 per cent relaxation in these limits would require an additional capital expenditure of ₹1.24 lakh crore but would unlock operating cost savings of ₹3.51 lakh crore.

He further said such a relaxation would eliminate the need to install about 22 GW of battery energy storage systems (BESS), reducing the overall cost of the power system.

Kumar said the proposal would require approval from the Central Electricity Authority (CEA), as build limits are part of the assumptions used in long-term power-system planning exercises.

The proposal to relax build limits drew an immediate response from Union Minister for New and Renewable Energy Prahalad Joshi, who was attending the Goa event. Joshi said the ministry would examine the suggestion in detail and directed Santosh Kumar Sarangi, Secretary of the Ministry of New and Renewable Energy, to study the proposal and its implications.

Published on June 22, 2026