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For the renewable sector, Budget 2026 is unlikely to be judged by headline targets alone. Instead, stakeholders say its success will hinge on how effectively it addresses the plumbing of the power system, transmission, storage, discom finances and risk mitigation
“Current incentives have resulted in large capacity addition and helped kick-start domestic manufacturing,” said Varun Karad, co-founder of LNK Energy. “But from an investor’s standpoint, long-term capital ultimately responds to certainty of predictable policy and payment discipline.”
Karad added that unless the government focuses on grid resilience and long-duration storage, renewable energy absorption could hit a ceiling.
“Going forward, the government should also focus on strengthening the backbone of the system in the form of grid resilience and long-duration storage, else there may be a constraint on RE absorption,” he said.