India's Renewable Energy Sector: Navigating Global Regulatory Challenges

The Indian renewable energy sector is set to face regulatory pressures inspired by Europe and China. With significant growth in renewable energy capacity, global trends push India towards stricter regulations to manage grid disturbances and pricing challenges. The sector's dynamic evolution reflects global shifts towards disciplined market practices.

India's renewable energy sector is on the brink of encountering regulatory challenges, drawing lessons from Europe and China, according to a recent report by JM Financial. The report highlights emerging global issues like grid disturbances, subsidy-driven incentives, and negative energy prices as key factors influencing future policies in India.

As India's renewable energy share continues to grow, domestic policies are expected to mirror international experiences within the next few years. The sector's rapid expansion, facilitated by flexible governance and regulation, now faces calls for stricter discipline, especially as grid disturbances and pricing challenges become more pronounced globally.

China and Europe are already taking proactive steps to address these issues. China's reduction of subsidy-driven incentives and Europe's control over renewable promotion places India on a similar trajectory. With India's non-fossil fuel capacity reaching significant milestones, regulatory adjustments seem imminent to ensure sustainable growth.

(With inputs from agencies.)