New Delhi, May 10 -- India's power sector is entering a new phase where the key challenge is no longer electricity shortages, but ensuring reliable power supply during non-solar hours as renewable energy capacity rises rapidly, according to a Citi Research report.

The report highlighted that while India has significantly expanded its generation capacity over the past decade and reduced overall power shortages, the country is now facing growing stress during evening and night-time peak demand periods when solar power generation declines.

"The challenge is shifting from 'not enough energy' to 'not enough dispatchable energy at the right hour'," the Citi Research report stated.

According to the report, daytime solar generation and improve...