India’s Renewable Energy Share To Remain Stable At 21% In FY25; Says Ind-Ra Report

India’s renewable energy share, including large hydro, is expected to remain stable at nearly 21% of the country’s overall energy mix in FY25, according to a report released by India Ratings and Research (Ind-Ra) on Tuesday. The remaining share of the energy mix will largely come from thermal capacity, the agency noted.

As of December 2024, India’s total power generation capacity stood at 462 GW, with renewables—comprising solar, wind, and large hydro—accounting for 209.444 GW. The report also projected that India’s total energy requirement would grow by 5-5.5% year-on-year in FY25, with incremental capacity additions of 30-35 GW, primarily driven by renewable sources.

Ind-Ra further affirmed its stable rating outlook for solar and wind projects through FY26, citing a historical generation profile, consistent payments from counterparties, and comfortable internal liquidity as key factors supporting this stability.

Renewable Energy Capacity To Contribute More By 2030

Looking ahead, the report anticipates significant growth in renewable energy capacity. By 2030, renewables are expected to contribute 35-40% to India’s power generation mix, fueled by a strong pipeline of projects. The agency highlighted that this growth would be supported by hybrid, storage, and round-the-clock renewable tenders, which are expected to gain traction due to their ability to ensure grid stability and manage intermittency issues commonly associated with renewable energy.

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Bharath Kumar Reddy, Associate Director of Infrastructure at Ind-Ra, emphasized that government support and favorable input prices would continue to drive a strong under-construction pipeline for renewables. “Given the uncertainty and intermittency in renewable energy projects, the need for round-the-clock power and to maintain grid stability, renewable tenders with hybrid/storage/round-the-clock components are expected to see further growth,” he said.

Renewable Capacity Needs To Ramp Up To Meet 2030 Targets

To meet India’s energy demand growth and transition plans, the country must add 50 GW of renewable energy capacity annually until 2030, said Vinitha Arunachalam, Analyst, Infrastructure at Ind-Ra. Arunachalam also pointed out that while India boasts a strong pipeline of 174 GW as of September 2024 and is experiencing healthy tendering activity, successful implementation of these projects will be key to achieving the country’s ambitious renewable energy targets.

As India continues its shift toward renewable energy, the stability of its energy mix and the ongoing investment in new projects will be critical to sustaining growth and ensuring energy security for the future.