India is poised to maintain its renewable energy share at 21% of its total energy mix in FY25, as projected by India Ratings and Research (Ind-Ra). This share includes large hydroelectric power and other renewable sources. Despite ongoing efforts to transition to cleaner energy, the remaining energy needs will primarily be met by thermal sources in the short term. As of December 2024, India’s total power generation capacity reached 462 gigawatts (GW), with 209.444 GW sourced from renewables, including hydroelectric power.

India’s energy demand is forecasted to grow by 5-5.5% year-on-year (YoY) in FY25, with renewable energy capacity additions expected to lead this incremental growth. A robust pipeline of 30-35 GW, mostly in solar power, is projected to contribute significantly to this expansion. The focus will be on ramping up solar power capacity, which is expected to play a pivotal role in meeting India’s future energy requirements.

Looking towards 2030, India’s renewable energy share is projected to rise significantly to 35-40% of its total energy mix, supported by key hybrid and storage solutions, along with round-the-clock tenders. Government initiatives, such as subsidies and policy reforms, will continue to support this transition, making renewables a central pillar of India’s future energy framework.

To meet these ambitious goals, it will be crucial for India to add 50 GW of renewable capacity annually, with the 174 GW of renewable projects already in the pipeline as of September 2024. The successful implementation of these projects will determine how quickly the country can achieve its energy transition objectives.

Solar and wind projects are expected to have a stable outlook for FY26, with favorable conditions including historical performance, steady payments, and favorable input prices. This stability, combined with continued government support and private sector involvement, is expected to drive the growth of India’s renewable energy sector.

The Indian government has been actively pursuing the development of green energy solutions, understanding that renewable energy is key to both environmental sustainability and economic growth. In addition to the significant investments in solar and wind energy, the government’s emphasis on hybrid storage and advanced energy technologies will help ensure that India meets its renewable energy targets well into the next decade.

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