India Powers Up: Renewable Energy Capacity Set for Major Surge

India's renewable energy capacity is projected to hit 250 GW by March 2026, driven by a large 80 GW project pipeline and increased tendering activity. Challenges in land acquisition and connectivity may affect progress. By 2030, energy storage requirements are expected to reach 50 GW to support growth.

India is on track to expand its renewable energy capacity to 250 GW by March 2026, according to a report by the rating agency Icra. The increase will be powered by an extensive project pipeline exceeding 80 GW, stimulated by a noted rise in tendering activities in fiscal year 2024.

The report highlights that the installed renewable energy, which encompasses large hydro projects as well, is set to grow from 201 GW in September 2024 to the targeted figure. Girishkumar Kadam, Senior Vice President & Co-Group Head of Corporate Ratings at Icra, stated that significant contributions to this expansion are expected from the rooftop solar and commercial and industrial segments, although potential delays in land procurement and transmission connectivity could impede this growth.

Icra also forecasts a requirement for 50 GW in energy storage capacity by 2030, which will be fulfilled through battery energy storage systems (BESS) and pumped storage hydro projects (PSP). This development aligns with India's broader ambition of achieving 500 GW in renewable energy capacity by the end of the decade.

(With inputs from agencies.)