Economic Survey 2025-26 flags energy transition minus grid infrastructure

As India works towards achieving 500GW of power from non-fuel energy sources, the Economic Survey emphasised the importance of grounding energy transitions in baseload adequacy and system reliability to ensure secure and affordable power.

This comes at a time when a recent report by energy think tank Ember found that India curtailed 2.3 terawatt hours (TWh) of solar generation between late May and December 2025 to maintain grid stability compensation with payouts of about $63 million–$76 million to affected generators.

It flagged that the current largest structural driver of renewable energy curtailment in India is the mismatch between the deployment of renewable energy generation and associated transmission infrastructure. 

The Survey cited global experiences to emphasised “the importance of grounding energy transitions in baseload adequacy and system reliability to ensure secure and affordable power.”

“Experiences in the United Kingdom highlight how declining firm power source has contributed to higher system costs. Another case is Germany, which is experiencing rising household and industrial energy prices as a result of its energy transition policies,” the Survey said.

It talks how Spain and the Netherlands have recently faced growing grid instability and capacity limitations, reflecting the risks associated with transitions that outpace investments in baseload generation, transmission, and system flexibility.

In the Netherlands, grid congestion has become severe enough to prompt public appeals to reduce electricity use during peak hours, while nearly 14,000 firms remain on waiting lists for new connections to the grid.

The country has already surpassed the goal of 50% installed power capacity from non-fossil fuel sources (stood at 51.93% at the end of December 2025), supported by record annual additions of renewable energy capacity.

During 2025-26 (up to 31st December 2025), a total of 38.61 GW of renewable energy capacity has been installed in the country, which includes 30.16 GW of solar power, 4.47 GW of wind power, 0.03 GW of Bio-Power and 3.24 GW of hydro power. Nuclear stands at 8.7GW.