India’s renewable energy capacity is projected to rise sharply by FY30, though execution delays threaten timely sectoral progress.
New Delhi
India’s renewable energy (RE) share in overall electricity generation, including large hydropower, is expected to surpass 35 per cent by FY30, rising from 22.1 per cent in FY25, according to a report released on Thursday. The estimate is based on an anticipated addition of nearly 200 GW of new RE capacity between FY25 and FY30, reflecting the country’s accelerated push toward cleaner and more sustainable power sources.
However, this projection depends heavily on the successful execution of the ongoing project pipeline, where bidding is completed and power purchase agreements (PPAs) have been signed. The report, published by rating agency ICRA, highlights the crucial need for transmission infrastructure development and timely bidding for new renewable projects by central nodal agencies. Despite these challenges, the outlook for the sector remains stable, supported by favourable government policies, competitive tariff trends and a strong sustainability focus among commercial and industrial consumers.
The report also flags multiple bottlenecks affecting the pace of renewable expansion. These include land acquisition hurdles, inadequate transmission capacity, delays in PPA signings, volatility in equipment prices and the financial stress of distribution utilities. After witnessing robust activity with 47.3 GW of renewable capacity awarded in FY24 and 40.6 GW in FY25, bidding has slowed significantly. Only 5.8 GW has been awarded during the first eight months of FY26, raising concerns about project continuity. Additionally, industry assessments indicate that nearly 40–45 GW of awarded capacity remains without signed PPAs.
Girishkumar Kadam, Senior Vice President at ICRA, noted that the decline in new bids and delays in signing PPAs reflect uncertainties related to transmission connectivity. He emphasised that strengthening grid infrastructure and expanding storage capacity at both state and inter-state levels are essential as renewables take up a larger share of India’s energy mix.