India Plans Canceling 42GW Green Projects Amid Buyer Shortage

India is considering canceling up to 42 gigawatts of green power projects, amounting to about one-fifth of its renewable capacity, due to difficulties in securing power purchase agreements from financially strained state utilities. These utilities are reluctant to commit to buying renewable electricity because of the irregular supply without adequate energy storage and the phasing out of interstate transmission subsidies, which has increased costs for purchasing electricity across states. The government is urging developers to include battery storage to stabilize supply and has planned a phased increase in transmission charges, fully eliminating subsidies by 2028. While canceling these projects could ease grid capacity constraints, it poses a significant risk to India's ambitious goal of doubling its clean power capacity to 500 gigawatts by 2030. This potential policy shift highlights the complex challenges in India's renewable energy sector, balancing ambitious climate targets with market and infrastructure realities. Stakeholders are closely monitoring the government's decisions, which will critically influence the future trajectory of India's sustainable energy development.