Renewable energy (RE) has been a sunrise sector, which has grown at break-neck speed from 39 GW as of March 2015 to about 87 GW as of February 2020, riding on strong government thrust, falling costs, and strong investor interest. However, over the past 12-18 months, the prospects have become clouded with execution challenges, delays in discom payments, tariff renegotiation, and finance availability issues. Moreover, the risk of a mismatch in the demand-supply curve looms as penetration of RE rises in the overall electricity supply mix. This calls for an integrated energy approach, encompassing an enabling policy, regulatory framework and market-led mechanisms. • Expected RE capacity addition trajectory • Recent trends in bid tariffs and their economics • Policy/ Market measures announced by the government in the last 12 months along with their impact • CRISIL’s view on measures necessary to be implemented to ensure sustainable growth in the sector