ICRA, the rating agency, said that electricity grid readiness and energy storage will drive the next phase of renewable energy growth in India. It projected that the share of generation from renewable energy, including large hydro, will cross 35 per cent by 2029-30 from 22 per cent in 2024-25. The agency noted more than 150 GW were under construction as of 30 June 2026 and that these are likely to drive capacity additions in the near term. ICRA highlighted that bidding activity slowed amid challenges in signing power purchase and power sale agreements and delays in transmission ramp-up. The agency said transmission infrastructure has lagged generation growth, leading to curtailments for projects operating under temporary general network access. It added that timely completion of intra-state and inter-state transmission projects and scaling up storage remain critical to sustaining capacity addition, while unsigned PPA capacity remained sizeable at 40-45 GW as of April 2026. Following an award of 40.6 GW in 2024-25, ICRA noted awards slumped to 14.7 GW in 2025-26 and stood at 4.7 GW through 10 August 2026. The senior vice president and group head for corporate ratings said bidding has moderated, with a decline in bids for normal solar and wind and greater focus on firm and dispatchable renewable energy and round the clock power. He observed that a recent tender by the Solar Energy Corporation of India delivered a demand based supply pattern with a discovered tariff of Rs 5.25/unit, which compared favourably with most new thermal plants above Rs 6.00/unit. The agency warned that grid curtailment and transmission constraints affect project returns, with around 37 per cent of capacity at impacted substations under T-GNA facing curtailment of 30-50 per cent during solar hours. It said decline in battery costs over the past decade, together with viability gap funding and transmission charge waivers through June 2028, has supported adoption of Battery Energy Storage System. ICRA maintained a stable outlook for the renewable energy sector, citing strong policy support and tariff competitiveness.