India’s renewable energy sector is expected to expand at double the rate of the country’s overall energy capacity, according to a report by CRISIL. The study projects that by fiscal year 2030, renewable energy capacity, excluding large hydro projects, will reach between 360-370 GW, growing at a compound annual growth rate (CAGR) of 16.5%-17%. In comparison, India’s overall power capacity is expected to grow at a much slower rate of 7.5%-8%, from the 442 GW installed as of March 2024.

The significant rise in renewable energy will be driven primarily by solar power, which has been the leading contributor to the country’s green energy push. The report forecasts that India will add 175-180 GW of solar capacity between fiscal 2025 and 2030. Solar energy alone has seen rapid growth, from just 0.9 GW in 2012 to 82 GW by 2024. Government policies, competitive tariffs, and initiatives such as the development of solar parks and green energy corridors have bolstered this progress.

CRISIL’s findings also highlight the steady rise in India’s peak electricity demand. Between fiscal 2018 and 2024, demand increased from 164 GW to 243 GW, averaging a growth rate of 6.8%. Despite facing challenges in 2023, which led to a 4.2% peak deficit, the situation improved in 2024, reducing the deficit to 1.4%.

The report further predicts that power demand will continue to rise by 5.5%-6% over the next five years, fueled by infrastructure investments, railway electrification, metro rail expansions, and the growing adoption of electric vehicles. While these developments will contribute to increased energy consumption, advancements in energy efficiency and the adoption of off-grid renewable energy solutions are expected to moderate overall demand growth.

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India’s ambitious renewable energy targets place it at the forefront of the global transition toward sustainable energy. The country’s continued investment in solar and other renewable technologies will play a crucial role in achieving its green energy goals and reducing reliance on conventional power sources.

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