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Latest Business News, Business News India Today | The HinduBusinessLine

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India can save ₹2.27 lakh crore by easing renewable energ...
M Ramesh · 2026-06-15 · via Latest Business News, Business News India Today | The HinduBusinessLine

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

Speaking at a wind industry conference in Goa on Sunday to mark Global Wind Day, Alok Kumar, Director General, AIDA and former Secretary, Ministry of Power, said that 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 overall system costs, he said.

Build limits are assumptions used in power-system planning models to cap the amount of new generation capacity that can be added 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, resulting in a net saving of ₹2.27 lakh crore.

He further said that 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 event. Joshi said the Ministry would examine the suggestion in detail and directed Santosh Kumar Sarangi to study the proposal and its implications.

8 GW this year

The Indian wind industry expects to install 8 GW of fresh capacity in 2026-27, up from the record 6.05 GW added in 2025-26, according to Girish Tanti, President, the Indian Wind Turbine Manufacturers Association.

Speaking at a panel discussion during the Global Wind Day event, Tanti said the industry was confident of sustaining the momentum and scaling up annual installations to 10 GW in the following year.

The projections come amid growing expectations of stronger policy support, expansion of transmission infrastructure and increased demand for renewable energy from both utilities and commercial consumers.

Published on June 15, 2026