With this issue, we celebrate our 29th anniversary. As we look back at the year, two clear themes emerge – growth and innovation.
The clean energy narrative has remained robust. Last year was another record year for renewables with 29 GW of capacity being added, and the numbers this year are already (as of the first five months in FY 2026) at 20 GW.
This phenomenal growth in renewables was marked by growing private sector enthusiasm for auctions, supportive reforms and collaboration. Battery energy storage and pumped hydro, the two storage technologies that are crucial as volatility becomes the new normal, saw accelerated activity, project pipeline expansion and more policy measures being doled out. The manufacturing ecosystem also witnessed increasing indigenisation, with forward-looking policies, regulations and incentives enabling domestic and foreign players to plug the gap.
The nuclear mission also progressed. The government unveiled an ambitious road map for nuclear energy expansion to more than tenfold the current installed base. The year also saw resurging interest in the coal-based power generation segment, with the government orchestrating a dual strategy that amplifies the country’s need for baseload power while embracing renewable energy technologies.
After a long hiatus, many states rolled out bids to secure long-term thermal PPAs, which were won by both public and private players, reflecting the investor confidence in the sector. Stressed plants were also being revived, drawing fresh investments.
In the transmission segment, while experts sifted through the impact of Europe’s most significant grid blackout in more than two decades, at home, the transmission grid did well and became more robust while interregional transfer capacity strengthened. The year saw a record number of auctions for transmission projects, with private and public players securing both interstate and intrastate projects. The compensation rules for right of way were revised to reduce litigation and accelerate development. Players continued to invest in digitalisation and AI to reduce the time required for building projects. A new master plan for evacuation of hydropower from the Northeast was unveiled recently, with more HVDC corridors.
For discoms, a lot of things improved, while several concerns remained. The revenue gap narrowed further, even though AT&C losses and accumulated losses were higher.
There was a renewed push on policy and regulatory reforms. The Draft Electricity (Amendment) Bill 2025, was issued recently, targeting reforms such as opening the retail electricity markets and revamping tariffs and cross-subsidies. The regulatory assets dissolution order was another positive development. A major overhaul under way pertains to virtual PPAs, which could be a game changer in the next few years as it could provide a new financial mechanism for C&I consumers to achieve their renewable energy targets.
There was definitely progress last year; yet challenges remain. Land acquisition hurdles, timely signing of PPAs and execution challenges persist. As India writes the next chapter of its energy story, we believe that blending new solutions with old strengths is the key to keeping the lights shining bright.
P.S.: We take this opportunity to rededicate ourselves to the mission of the magazine – to be the most trustworthy source of information and analysis for the Indian power sector. We would also like to thank our readers, editorial contributors and advertisers for their continued support.