The Centre is considering a new incentive mechanism for floating solar power projects as part of its broader strategy to expand renewable energy capacity beyond a handful of dominant states.
Speaking at the CII Annual Business Summit in New Delhi, New and Renewable Energy Secretary, Santosh Sarangi said the government is exploring ways to encourage floating solar installations across the country to ensure a more balanced renewable energy network.
Currently, large-scale renewable energy deployment remains heavily concentrated in states such as Rajasthan and Gujarat because of land availability and strong solar potential. Officials now want to decentralise this growth and expand grid-scale renewable infrastructure into other regions.
According to Sarangi, floating solar projects could play a significant role in achieving this objective while also helping optimise land use in densely populated regions.
The government’s renewable energy ambitions remain substantial. Citing estimates from NITI Aayog, Sarangi said India could require nearly 1,800 GW of renewable energy capacity by 2050, alongside around 2,000 GWh of battery energy storage systems to maintain grid reliability and support future energy demand.
Officials also indicated that new policy measures may be introduced to strengthen domestic manufacturing capabilities across the renewable energy supply chain. These could include demand-generation mechanisms for ingot and wafer manufacturing, along with incentives for polysilicon production.
Industry stakeholders at the summit also raised concerns over renewable energy curtailment, where generated clean power cannot be fully utilised because of transmission and grid limitations. Sarangi acknowledged that the issue requires urgent attention and stressed the need for stronger transmission infrastructure and better grid planning.
India is expected to significantly expand investments in green energy corridors to improve grid stability and support the integration of renewable energy into the national power network.
The government also believes reducing electricity costs will be critical for India’s industrial competitiveness as energy increasingly shapes manufacturing investment decisions and economic growth.
Speaking at the summit, Founder, Chairman & CEO, ReNew, Sumant Sinha described energy security as central to India’s long-term economic ambitions and said renewable energy could help the country navigate future energy crises more effectively.
Meanwhile, Ashish Khanna, Director General, International Solar Alliance, called for stronger global partnerships and deeper private-sector collaboration to build resilient clean energy supply chains, noting that India is increasingly emerging as a key hub for supply chain diversification. "I would suggest that the Indian private sector probably needs to tie up a lot more with some of the international private sector, because I keep hearing from the private sector of all the countries that the road for supply chain diversification will lead through India," he said.
