Solar power allocation up 32% at ₹30,539 crore
The budget allocation for the solar sector increased from ₹24,200 crore (~$2.64 billion) in 2025 to ₹30,539.36 crore (~$3.33 billion) this year. The outlay for the Pradhan Mantri Krishi Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM) programme has gone up from ₹26 billion (~$283.57 million) last year to ₹50 billion (~$545.33 million) in Budget 2026. The flagship PM Surya Ghar: Muft Bijli Yojana continues to dominate the allocations, with spending set to rise from ₹200 billion (~$2.18 billion) to ₹220 billion (~$2.39), Mercom reported. Out of ₹30,539.36 crore outlay, ₹1,775 crore was allocated for the solar power grid in 2027 against 1000 crore marking 77.5% rise, reported ET.
Grid flexibility too weak to ramp down coal plants, India switches off 2.3 TWh solar power in 2025: Ember
India switched off around 2.3 TWh of healthy solar power last year through emergency measures because the demand was weak and the system could not ramp down coal plants fast enough during periods of low daytime demand, found a new report by Ember, reported DTE.
Between May and December 2025, the national grid operator curtailed 2.3 TWh of solar power with nearly 40% of the curtailment occurring in October alone.
Solar supply was cut despite rapidly expanding renewable capacity, as the country’s power system struggled to adapt to rising daytime solar generation and weak demand growth, according to a new report by global energy think tank Ember.
The cut equivalent to the annual electricity use of nearly 400,000 households — highlights a growing mismatch between India’s clean energy ambitions and the flexibility of its power system, the report titled Beyond Capacity: Why India’s Power System Must Get Flexible said.
Is solar surplus causing system stress? India added a record 38 GW of solar capacity in 2025, pushing non-fossil fuel capacity to 50 per cent of total installed power capacity. But instead of displacing fossil fuel generation, a portion of this clean energy was switched off to maintain grid stability.
India to tap 100 GW of hydro pumped storage to stabilise renewables surge
India plans to develop 100 GW of hydro pumped storage by 2047 to stabilise its renewable energy surge, DTE reported. Experts project cumulative investments of ₹5-6 lakh crore to build the targeted capacity. The outlet said the strategy positions pumped storage as essential for managing peak demand and supporting the country's Net Zero transition. Significant investments and public-private partnerships are anticipated under this ambition, it said.
India to stop setting annual clean energy tender targets, official says
India will stop setting annual targets for clean energy tenders after missing last year's goal and building up a large backlog of projects without buyers, Reuters reported citing a senior government official.
The news wire said Indian developers are already sitting on the rights to build around 43 gigawatts of renewable power for which they have yet to find customers. State utilities have delayed buying clean power, expecting prices to fall and citing uncertainty over power delivery due to delays in transmission infrastructure, the report said.
India's clean energy ministry asked renewable implementation agencies to find buyers for the power from those tenders, Reuters reported in November, the outlet reported. “As per their (implementation agencies') initial evaluation, they are still confident that they will be able to sell quite a lot of power out of that (backlog)," Santosh Kumar Sarangi, a top official at the Ministry of New and Renewable Energy, told Reuters in an interview.
UK among 10 countries to build 100GW wind power grid in North Sea
The UK and nine other European countries will join what the Guardian describes as a “landmark pact” to build an offshore wind power grid in the North Sea. The newspaper explains: “The countries will build windfarms at sea that directly connect to multiple nations through high-voltage subsea cables, under plans that are expected to provide 100GW of offshore wind power, or enough electricity capacity to power 143m homes. The commitment, which will be set out in the ‘Hamburg declaration’, is expected to be signed [today] by energy ministers from the UK, Belgium, Denmark, France, Germany, Iceland, Ireland, Luxembourg, the Netherlands and Norway
India flags potential for investments of $500 billion in energy sector
India's energy infrastructure offers potential investment opportunities worth up $500 billion, Reuters reported quoting India’s Prime Minster Narendra Modi.
"We are moving away from energy security to energy independence ... There is a $500 billion opportunity in India's energy infrastructure," Modi told delegates at the India Energy Week conference.
India is building energy infrastructure to meet demand, he said, looking towards affordable refining and transport options. In natural gas, Modi added, "We are aiming to make LNG transportation vessels domestically."
India aims to become the world's No. 1 in refining capacity, he said. India is currently the third largest energy consumer and importer of crude. It aims to boost to $100 billion the opportunities on offer in oil exploration, in the effort to lift the area under exploration to 1 million square kilometre, the report said.
Green tech investments hit a record $2.3tn last year
Investment in the energy transition grew by 8% to a record $2.3 trillion in 2025, reported Bloomberg. The news outlet said the new figures from BloombergNEF show growth has “def[ied] fears that the shifting political landscape and economic uncertainty would halt the world’s clean-energy progress”. However, it adds: “Yet there are signs that while investments are increasing, they’re not doing so fast enough to accelerate the energy transition at the speed needed.”