India’s renewable energy developers are being advised to align expansion plans with actual electricity demand to avoid wasted investments, a senior power authority said.

Speaking at the BloombergNEF Summit in New Delhi, Central Electricity Authority (CEA) Chairman Ghanshyam Prasad cautioned that building new renewable capacity without sufficient demand could lead to unsold power. He noted that even now, a large portion of renewable output in India remains unpurchased.

The surplus in electricity supply has already forced grid operators to reduce power input to keep the system balanced. Recent data shows nearly 44 gigawatts of renewable projects currently lack firm supply agreements. Prasad also pointed out that India had experienced financial losses and bankruptcies in the past due to overcapacity in thermal power plants.

He stressed that renewable energy growth must be closely coordinated with transmission infrastructure. “Having substations ready doesn’t guarantee the power will be delivered,” he said, citing Gujarat’s Khavda substation, which has 4,000 MW capacity but only connects 300–500 MW. Developers are encouraged to submit grid connection requests 24–36 months ahead to ensure timely integration.

Industry experts echoed the need for stronger transmission planning. Sanjeev Aggarwal, founder and chairman of Hexa Climate Solutions, said, “We can add generation capacity quickly, but distributing it at the same speed is the real challenge. Transmission investments are falling behind because the focus is on generation.”

Officials warned that India’s renewable targets could be at risk if growth is not carefully managed and synchronized with demand and infrastructure readiness.