New Delhi: India must move beyond adding solar capacity to transform its energy system, with distributed solar, storage and smarter grids to meet an expected rapid surge in demand, according to a new report.
A report from Tata Power said that by 2035, solar will be at the “heart of India’s competitiveness, powering industries, energizing communities, shaping smart cities, and creating millions of livelihoods.”
India will witness the largest increase in energy demand worldwide in the coming decades, it said, adding microgrids could become the backbone of rural manufacturing clusters, digital learning, modern health centres and community level e mobility.
Further, distributed solar will extend clean energy progress beyond major cities, which calls for policy frameworks to support faster deployment, smarter grids and long term investment confidence, the report said.
“India will witness the largest increase in energy demand worldwide in the coming decades. Clean and green energy will play a major role in meeting this increased demand where what will matter the most is affordability and accessibility,” said Dr. Praveer Sinha, CEO and Managing Director of the Tata Power Company Limited.
Tata Power highlighted six policy priorities including resource adequacy frameworks, storage procurement mandates, domestic manufacturing incentives, green open access with digital approval systems, advanced forecasting standards as well as circularity and panel recycling norms.
“States will be required to plan for firm, dispatchable capacity alongside renewables. This ensures reliability as solar usage increases and creates a clear role for hybrids and storage-backed solutions,” the blog post said.
Upcoming guidelines will encourage utilities and developers to add battery and pumped-hydro storage, which will in turn help manage variability, reduce curtailment, and support round-the-clock renewable supply, it added.
Tata Power forecasted collaboration on R&D for advanced modules and emerging technologies as well as workforce development. Manufacturing innovation to strengthen domestic supply chains and grid modernization efforts with utilities and regulators are other critical areas which require collaboration, it added.
India is now third in solar capacity and fourth in overall renewables, adding 26.6 GW of solar in the first nine months of 2025 up 54 per cent on year on year basis.
