According to India Ratings and Research (Ind-Ra), the country’s energy requirement will also grow by 5% to 5.5% year-on-year this fiscal year.
“The all-India peak demand has reached an all-time high of around 250 GW and the supply position has been strong during the year, owing to a better coal supply and various measures undertaken by the government,” its report said.
Solar additions are expected to reach 22 GW to 25 GW by end-FY 2025. Ind-Ra also expects continued growth in renewable energy tenders, with a rising share for hybrid, storage, and round-the-clock projects.
“Execution of these projects remains key amidst the challenges being faced in terms of connectivity and implementation,” said Bharath Kumar Reddy A, associate director, Ind-Ra.
By FY 2026, Ind-Ra expects strong additions of renewable energy capacity to continue, supported by a healthy pipeline of projects.Thermal capacity additions are expected to pick pace that year, with large capacities in the final stages of completion.
Thermal power is expected to remain critical for base load management in the medium term, though renewable capacity additions will remain strong. Land acquisition, connectivity and adequate evacuation/transmission infrastructure remain key monitorables for the sector, Ind-Ra said.
