India's renewable energy sector may soon face new regulatory pressures similar to those seen in Europe and China, according to a recent report by JM Financial cited by ANI. These changes could address challenges like grid disturbances and negative energy prices as renewable sources become a larger part of India's energy mix, according to state media.

The report suggests that India's domestic policies will likely be shaped by global experiences within the next 3-4 years. This comes amid growing pressure on governments worldwide to enforce stricter regulations on the rapidly expanding renewable energy sector.

China has begun reducing subsidy-driven incentives due to problems with oversupply and negative energy prices. Similar challenges are affecting European nations, with some taking steps to control renewable energy promotion.

Germany, for example, plans to suspend subsidies for photovoltaic grid integration when electricity prices drop below zero. These global trends could set precedents for India's future regulatory approach.

As of January 20, 2025, India's total non-fossil fuel-based energy capacity has reached 217.62 gigawatts (GW). This represents significant progress in the country's transition to cleaner energy sources.

2024 was a record year for India's renewable sector with:

• 24.5 GW of solar capacity added (more than double the previous year)
• 3.4 GW of wind capacity added (21% increase from the previous year)

This growth was driven by government incentives, policy reforms, and increased investments in domestic manufacturing of solar and wind turbine equipment. Solar energy has become the dominant contributor to India's renewable energy capacity, now accounting for 47% of the total installed renewable energy.

The potential regulatory changes come amid broader international economic tensions. President Trump recently threatened 100% tariffs on BRICS nations, including India, as these countries explore reducing dollar dependence in global trade. India has adopted a balanced approach to de-risking rather than de-dollarization, with the Reserve Bank of India allowing international trade payments in rupees since 2022.