- State electricity firms lost $7.8B in 2022-23, crippling renewable investments
- Coal backup requirements add 18% to solar operational costs
- Rooftop solar installations lag at 11GW vs 40GW target
India's renewable energy transition faces unprecedented headwinds as legal allegations against infrastructure giant Adani Group reveal deeper systemic issues. While Adani Green Energy leads the nation's solar expansion with plans for 30GW mega-projects, the sector struggles with contradictory policies that simultaneously subsidize domestic manufacturers while restricting affordable Chinese imports. This protectionism increased local solar panel production sixfold since 2021 but kept costs 23% above global averages according to industry analysts.
The Solar Energy Corporation of India (SECI) faces mounting challenges as 37% of its 24.5GW capacity remains unsold. Unlike Brazil's decentralized solar model where rooftop installations account for 68% of renewable growth, India's focus on utility-scale projects creates transmission bottlenecks. Energy economist Vibhuti Garg notes this approach forces developers to maintain coal plants as backup, negating 40% of potential emissions reductions.
Regional repercussions continue as Kenya canceled $450M in Adani energy contracts following Sri Lanka's wind project withdrawal. These setbacks compound financial pressures as SECI's risk mitigation strategies increase administrative costs by 15-18%. With only 16% of 2023 solar projects securing buyers compared to 44% in 2022, analysts warn India may miss its 2030 targets unless implementing storage solutions and tariff reforms.
