In a recent interview with Power Line, Vipul Tuli, Chairman and Non-Executive Director, Sembcorp Green Infra Limited, shared his views on the evolving power sector, the growth and integration of renewable energy, emerging opportunities in green hydrogen, and the policy, infrastructure and market measures needed to support India’s energy transition. Edited excerpts…
What is your perspective on the current state of the power sector? How has the sector evolved over the years?
Over the past decade, the Indian power sector’s evolution has mirrored the country’s economic transformation. From addressing energy deficits and improving access, the power sector is now driving industrial growth, digitalisation and the clean energy transition. India is witnessing a fundamental shift in the scale, structure and profile of electricity demand.
The sector is now at an inflection point, with rapid industrialisation, urbanisation, electric mobility, railway electrification, data centres and digital infrastructure creating new demand centres. As renewable penetration increases, the focus will increasingly shift from capacity addition to system integration, ensuring that generation, storage and transmission evolve together to deliver reliable, affordable and clean power at scale while maintaining grid stability.
Looking ahead, energy security will be shaped not just by how much capacity we add, but also by how effectively we electrify the economy. India’s installed generation capacity has grown by nearly 44 per cent over the past six years to approximately 533 GW in FY2026, while renewable energy capacity has more than doubled from about 133 GW to 275 GW over the same period.
As demand from transportation, digital infrastructure, cooling and new industrial loads continues to grow, per capita electricity consumption is projected to rise from 1,010 kWh in FY2015 to approximately 1,600-1,650 kWh by FY2030.
Continued investments in transmission networks, storage and grid modernisation will be critical to sustaining reliability and strengthening energy security. The next generation of discoms will play a central role in this transition, evolving from power distributors to intelligent energy platforms.
What have been key hits and misses in the Indian renewable energy sector over the past year?
India has sustained momentum in renewable energy deployment despite global economic uncertainty, geopolitical disruptions and supply-chain pressures.
India’s ranking as the third largest market globally for renewable energy additions in 2024 reflects its growing role in the global energy transition. Solar has led this expansion, with installed capacity increasing more than fourfold since FY2020. Wind capacity has also continued to expand, playing an increasingly important role in balancing the power system.
The market has also matured significantly. More than 145 GW of utility-scale renewable tenders have been concluded since FY2021, reflecting strong investor interest and policy continuity.
The shift in procurement models is notable. The sector is moving beyond stand-alone solar and wind projects towards wind-solar hybrids, round-the-clock (RTC) renewable power, firm and despatchable renewable energy (FDRE) projects, and storage-linked solutions. This demonstrates that the industry is increasingly focused on delivering reliable renewable power rather than simply adding renewable capacity.
Policy refinements have also improved project bankability through clearer connectivity provisions, stronger performance obligations and more robust contracting frameworks. Reforms such as the Electricity (Late Payment Surcharge Rules), 2022 have strengthened payment discipline, improved liquidity across the power value chain and enhanced confidence among generators, lenders and investors. Equally significant, India achieved its Paris Agreement commitment of sourcing 50 per cent of its cumulative installed power capacity from non-fossil fuel sources in 2025, five years ahead of the 2030 target, underscoring both the pace and scale of the country’s energy transition.
As renewables scale up, certain structural headwinds have emerged as bottlenecks to the system’s steady evolution. Transmission connectivity remains primary among these concerns. Renewable projects are typically commissioned within 18-24 months, but transmission infrastructure often takes considerably longer.
Equally important is the evolution of the institutional and regulatory ecosystem. The next phase of growth will require faster and more efficient regulatory and dispute-resolution mechanisms, alongside policy frameworks that reflect the realities of a more renewable-intensive and flexible power system. Upgrading discom capabilities and strengthening their economic framework will also be critical to meeting the sector’s future requirements for reliability, resilience and growth. The focus now should be on ensuring that transmission, storage, regulatory institutions and market structures evolve in step with renewable capacity additions.
What is the optimal generation mix to meet India’s growing power demand? What role and potential do renewables have in this mix?
India’s future power system must balance reliability and sustainability while meeting rising electricity demand driven by economic growth and the ongoing electrification of industry, transport and households. While conventional power will continue to play an important role, renewables will remain the dominant source of capacity additions.
Equally noteworthy is the rapid greening of the generation mix. As of July 2026, India’s non-fossil fuel-based installed capacity crossed 300 GW. Solar energy has been the principal driver of this transformation, growing from just 2.8 GW in 2014 to 165 GW today.
More than 80 per cent of new capacity additions between FY2027 and FY2031 are expected to come from renewable energy, with total renewable additions projected at 264-274 GW, helping increase India’s installed capacity to approximately 835-845 GW by FY2031.
At the same time, rising electricity demand, driven by economic growth and deeper electrification across transport, industry and digital infrastructure, will require higher generation from all sources. This makes continued investments in transmission and distribution infrastructure equally critical to ensuring reliability, flexibility and efficient power delivery.
As peak demand rises, the focus will increasingly shift towards firm and flexible power. Capacity additions across conventional, hydro and nuclear power, supported by growing adoption of hybrid, RTC and FDRE solutions are expected.
Energy storage will be a defining feature of the next phase of growth, with about 50-55 GW of capacity expected to be added by FY2031. Combined with stronger transmission infrastructure and green energy corridors, storage will enable deeper renewable integration while enhancing reliability and grid resilience.​
India’s solar energy potential is nearly 749 GW and wind energy potential is about 696 GW. Supported by growing corporate decarbonisation demand, favourable policies and competitive tariffs, solar and wind will remain the primary drivers of capacity growth.
The next phase of the energy transition will be defined by deeper grid integration, faster execution and greater system flexibility. The optimal generation mix will, therefore, be a balanced combination of renewables, conventional power, storage and transmission infrastructure rather than a choice between conventional and renewable energy.
What are the biggest risks and challenges facing the solar industry today? What lessons can India learn from global experience?
Solar has emerged as one of the most cost-effective sources of new power generation globally, with installation costs falling from around $1,044 per kW in 2020 to $691 per kW in 2024. The focus is now shifting from building solar capacity to integrating it efficiently into the power system.
Transmission connectivity remains a challenge as solar capacity scales rapidly. Infrastructure must keep pace to avoid project delays and ensure seamless integration of clean power into the grid. Otherwise, congestion-related curtailment, already witnessed in renewable-rich states, could adversely affect realised generation and revenues.
Supply chain resilience is another important consideration. While domestic manufacturing capability continues to strengthen, developers remain exposed to fluctuations in global commodity prices, imported raw materials and foreign exchange movements. Land acquisition also remains a major challenge, particularly for utility-scale projects requiring large contiguous parcels of land.
Climate change is also contributing to greater variability in solar radiation and weather patterns, potentially affecting generation profiles and forecasting accuracy.
The key lesson from global markets is that renewable growth eventually becomes an integration challenge rather than a generation challenge. Success will depend on how effectively transmission infrastructure, storage deployment and grid flexibility keep pace with capacity addition.
As tendering accelerates and project pipelines deepen, connectivity is increasingly becoming the critical gating factor for utility-scale solar growth. The next phase of solar expansion will, therefore, be defined not just by capacity installed, but by how efficiently clean power is integrated and delivered at scale.
What is the long-term market potential for green hydrogen and its derivatives in India and globally? Which sectors are likely to drive future demand?
Green hydrogen is emerging as a key decarbonisation pathway, particularly for hard-to-abate sectors such as refining, fertilisers, steel and heavy transportation. Demand for green ammonia is also expected to grow, given its role as an efficient hydrogen carrier, energy storage medium and low-carbon feedstock. Given India’s leadership in fertilisers, refining and ammonia production, these industries are likely to anchor early demand.
India has established a strong foundation through the National Green Hydrogen Mission, which targets production of 5 million tonnes of green hydrogen by 2030. Government estimates indicate that achieving this green hydrogen ambition could require approximately 125 GW of additional renewable energy capacity and investments exceeding Rs 8 trillion.
Initiatives like waiving interstate transmission charges, production-linked initiatives for electrolysers, state-level support through capital subsidies and electricity banking, special economic zone (SEZ) benefits and identification of ports to be upgraded for hydrogen export, will help create a green hydrogen ecosystem.
The next step is ensuring that supporting infrastructure and market arrangements evolve at a similar pace. Clarity in policy support, development of enabling infrastructure, and collaboration between the government and the private sector will go a long way in meeting green hydrogen’s potential as the preferred pathway to decarbonisation.
Deeper collaboration across government, industry, financial institutions and technology partners will accelerate investments and further improve competitiveness.
What further policy, infrastructure and market support measures are required to accelerate the large-scale deployment of green hydrogen projects?
A key requirement is the continued expansion of renewable energy capacity. The scale of renewable power needed to support green hydrogen production underscores the importance of sustained investment in generation assets, storage systems and transmission infrastructure.
Transmission development will be particularly important. Continued implementation of green energy corridors and expansion of interstate transmission capacity can help ensure reliable access to renewable power for hydrogen projects.
Providing green hydrogen offtake contracts treatment similar to renewable energy implementing agencies for reserving transmission access would also help improve project bankability and provide greater certainty for large-scale investments.
Creating SEZ-style ecosystems for the wind sector can strengthen supply chains, enhance competitiveness and support the rapid renewable build-out required for green hydrogen scale-up.
Equally important is long-term market certainty. As the sector evolves, clear demand signals, bankable offtake arrangements and policy stability will be critical for attracting large-scale investment across the value chain. Scaling green hydrogen will require coordinated development across renewable energy, transmission, storage and industrial demand centres.
What is your outlook for the power sector in the near to medium term? How is the renewable energy segment expected to grow in the coming years?
Industry reports project power demand to grow at a CAGR of 5.56 per cent over the next five years, supported by robust economic growth, infrastructure-led capex, manufacturing expansion, urbanisation and rising electrification across the economy. This growth is expected to be further reinforced by emerging demand from electric vehicle adoption, railway electrification, digital infrastructure, cooling requirements and new industrial loads.
Supported by strong economic growth and electrification trends, India’s per capita electricity consumption has substantial headroom for expansion, expected to reach approximately 1,600-1,650 kWh by FY2030.
Renewables will be the primary engine of this expansion. More than 80 per cent of new capacity additions through FY2031 are expected to come from renewable energy, adding approximately 264-274 GW, taking the total installed capacity to about 835-845 GW.
The next phase of growth will be defined not just by scale, but by system integration and reliability. Strong policy support, rising corporate decarbonisation commitments and robust tender pipelines will keep solar and wind at the centre of capacity expansion, while hybrid, RTC, FDRE and storage-linked solutions become increasingly mainstream.
The priority is now to build a resilient, cleaner and more flexible power system, supported by India’s scale, policy momentum and long-term demand fundamentals.
