Renewables Sector Urges Focus on Storage and Financing Challenges Ahead of Budget 2026 – EQ
In Short : Ahead of Budget 2026, India’s renewable energy sector has highlighted critical gaps in energy storage infrastructure and affordable financing. Industry stakeholders are calling for targeted policy support, incentives, and funding mechanisms to strengthen grid stability, accelerate clean energy deployment, and sustain momentum toward national renewable and climate targets.
In Detail : As preparations for Budget 2026 gather pace, the renewable energy sector has flagged key structural challenges that could slow India’s clean energy transition if left unaddressed. Foremost among these concerns are inadequate energy storage capacity and limited access to affordable, long-term financing.
With renewable energy capacity expanding rapidly, stakeholders stress that storage solutions are essential to manage intermittency and ensure reliable power supply. Without sufficient battery and other storage technologies, integrating large volumes of solar and wind power into the grid becomes increasingly complex.
Industry players have emphasized the need for clear policy frameworks and incentives to promote energy storage deployment at scale. Support for battery manufacturing, grid-scale storage projects, and emerging technologies such as pumped hydro is seen as critical for long-term system stability.
Financing constraints remain another major hurdle, particularly for capital-intensive renewable and storage projects. Developers continue to face high borrowing costs, limited access to low-cost international finance, and risk perceptions that raise project expenses.
The sector has called for innovative financial instruments, credit enhancement mechanisms, and expanded green financing options in the upcoming budget. Measures that reduce cost of capital could significantly improve project viability and attract greater private investment.
Domestic manufacturing of storage technologies has also emerged as a priority area. Budgetary support for local production could help reduce import dependence, strengthen supply chains, and align with broader self-reliance and industrial growth objectives.
Grid infrastructure upgrades are closely linked to both storage and financing challenges. Stakeholders note that investments in transmission, smart grids, and balancing mechanisms must move in parallel with renewable capacity additions.
The renewables industry believes that addressing these gaps will not only support clean energy growth but also enhance energy security and economic resilience. A stronger storage ecosystem can reduce reliance on fossil fuel-based balancing power.
Overall, ahead of Budget 2026, the sector’s message is clear: sustained renewable expansion now depends on decisive action to close storage and financing gaps, ensuring India’s clean energy ambitions remain on track and scalable for the future.
