India’s aggressive push to install 50 gigawatts of renewable energy (RE) annually till 2030 faces an imminent slowdown as litigation, policy issues and regulatory roadblocks have stalled many significant projects.

Industry associations and energy experts estimate that solar power comprises of nearly 48 per cent of the current installed national RE capacity of 220 GW.

Issues such as ongoing litigation, delays in operationalisation of transmission lines/ connectivity, force majeure events such as natural calamities and policy uncertainty have impacted many solar projects.

The uncertainty over the extension of the ISTS (Inter-State Transmission System) charges waiver — which is set to expire this month — has added another layer of risk in the RE sector, according to industry associations.

Rajasthan, which has the highest installed solar capacity in the country, has about 10 GW of projects — worth over ₹48,500 crore — stuck due to ongoing litigation in the Supreme Court on the conservation measures for the Great Indian Bustard.

According to data compiled by the Solar Association, and included in a letter to the Prime Minister’s Office, these projects are stalled due to delay in approval under Section 68 of the Electricity Act, 2003.

In the absence of a Supreme Court order, the Central Electricity Authority has put on hold nearly 10 GW of solar projects in Rajasthan for Section 68 approval that fall in Great Indian Bustard region of Rajasthan, which has led to environment-led litigation currently pending before the Supreme Court.

Such projects have already secured land, signed power purchase agreements and completed preliminary work, but await regulatory clearance to build transmission lines connecting projects to the national grid.

Delays in commissioning renewable energy projects may have implications far beyond deferred investment. One of them is the risk of missing the June 30 deadline to secure the ISTS charge waiver — a critical cost advantage locked in for 25 years.

Without it, project economics could weaken considerably, undermining solar’s ability to compete with thermal power on pricing.

In a recent representation to the PMO, the National Solar Energy Federation of India has urged the government to issue conditional approvals allowing work to begin while the legal case continues. The industry has also requested that developers not be penalized for these regulatory delays beyond their control.

The NSEFI’s representation to MoP & MNRE focused on 10 GW solar projects stuck in the GIB case since 2024. As per the federation, this may derail the FY25 and FY26 solar capacity addition targets.

NSEFI has sought interim relief for such projects by extension in terms of start date of connectivity, 25 per cent ISTS charges applicability and Approved List of Cell Manufacturers order applicability.

Beyond Rajasthan, the sector is also grappling with delays in signing power purchase and sale agreements for about 40 GW of capacity and inconsistencies in the grid connectivity timelines.

Published on June 19, 2025