Why in News?

India is projected to add 75 GW of renewable energy in FY26 and FY27—a 53% rise from the 49 GW added in FY24–25, according to Crisil Ratings.

Investments are expected to grow by 52%, from ₹2.5 lakh crore to ₹3.8 lakh crore, driven by a rising share of capital-intensive hybrid projects. However, Crisil warns that delays in transmission infrastructure could hinder future capacity expansion.

What’s in Today’s Article?

• Renewable Energy in India
• Massive Renewable Energy Expansion Planned
• Capacity Addition Planned in FY26

Renewable Energy in India

• As of October 10, 2024, India’s total renewable energy capacity has reached 201.45 GW, marking a major milestone in its clean energy journey.
• This achievement highlights India's commitment to reducing fossil fuel dependence and building a sustainable energy future.
• Non-Fossil Fuel Sources Powering Nearly Half of India
  • Including the 8,180 MW of nuclear capacity, India's total non-fossil fuel-based power now makes up nearly 50% of its installed electricity generation capacity, positioning the country as a global leader in clean energy.
• Renewables Dominate India's Energy Mix
  • India’s total electricity generation capacity stands at 452.69 GW, with renewables contributing 46.3% of this.
  • The renewable segment is supported by a diverse mix of sources:
    • Solar Power: 90.76 GW
    • Wind Power: 47.36 GW
    • Large Hydroelectric Power: 46.92 GW
    • Small Hydro Power: 5.07 GW
    • Biopower (biomass and biogas): 11.32 GW
• India’s 2030 Renewable Energy Target
• The Government of India has set an ambitious goal of achieving 500 GW of installed non-fossil fuel electric capacity by 2030, aiming to bolster energy security and address climate change.
• Flagship Renewable Energy Schemes
  • National Green Hydrogen Mission: Promotes production and use of green hydrogen.
  • PM-KUSUM: Supports solar power for agriculture.
  • PM Surya Ghar: Encourages rooftop solar adoption for households.
  • PLI Scheme for Solar PV Modules: Boosts domestic manufacturing of solar equipment.
• Investment Facilitation
  • 100% FDI allowed under the automatic route for renewable energy.
  • Project Development Cell established to ease investment processes.
• Infrastructure Development
  • Ultra Mega Renewable Energy Parks to provide land and transmission.
  • Transmission plan till 2030 in place for grid readiness.
  • Green Energy Open Access Rules 2022 to ease access for renewable power buyers.
• Offshore and Wind Energy Initiatives
  • Offshore Wind Strategy: Targets 37 GW bidding by 2030.
  • Offshore Wind Lease Rules, 2023: Regulates leasing for project development.
  • National Repowering Policy 2023: Modernizes old wind turbines.

Massive Renewable Energy Expansion Planned

• India is expected to add 75 GW of renewable energy capacity in FY26 and FY27, a 53% increase from 49 GW added in FY24–25, according to Crisil Ratings.
• This will raise the country’s total renewable capacity to 233 GW by March 2027.
• Investment to Surge by 52%
  • Investments in the renewables sector are projected to grow from ₹2.5 lakh crore in FY24–25 to ₹3.8 lakh crore in FY26–27—a 52% jump.
  • This surge is driven by the increasing share of capital-intensive hybrid and storage-linked projects.
• Rise of Hybrid and Storage-Linked Projects
  • Around 37% of the upcoming 75 GW capacity will come from hybrid and storage-linked projects—up from 17% in FY24–25.
  • Hybrid projects combine solar and wind to ensure more consistent power generation, while storage-linked projects use batteries or pumped hydro to store excess energy.
  • As renewable power is intermittent—solar during the day and wind being seasonal—increasing its share can disrupt grid stability.
  • Hybrid and storage solutions help maintain round-the-clock power supply and grid balance.
• Transmission Infrastructure a Key Bottleneck
  • Transmission remains a major challenge.
  • Though capex in this sector rose to ₹36,000 crore in FY25 (up from ₹15,000 crore in FY24), the Crisil report warns of delays due to equipment supply constraints and execution bottlenecks.
    • FY26–27 transmission capex is projected to reach ₹0.9–1 lakh crore.
• Slow Progress in Power Purchase Agreements (PPA)
  • Only 50% of PPAs for projects awarded in the last 1–2 years have been finalized, due to limited interest from state discoms.
  • However, this is expected to improve as power demand and renewable purchase obligations grow.

Capacity Addition Planned in FY26

• As per a recent Grid-India resource adequacy report, the country will add 45 GW in the ongoing FY26, led by:
  • Solar: 26.5 GW
  • Wind: 6.3 GW
  • Coal: 4.4 GW
  • Battery Storage: 3.3 GW
  • Hydro: 1.6 GW
  • Pumped Storage: 1.5 GW
  • Nuclear: 1.4 GW