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India’s installed renewable energy capacity is projected to touch 250 gigawatts (GW) by March 2026, driven by an extensive project pipeline and improved tendering activity, according to a report by rating agency ICRA.
The report highlighted that the current renewable energy capacity, including large hydro projects, stood at 201 GW as of September 2024. ICRA attributed the anticipated growth to the strong pipeline of over 80 GW of projects, supported by a notable increase in tendering activity during the financial year 2024.
Rooftop solar and C&I segments to play key roles
“We expect the rooftop solar segment and the commercial & industrial (C&I) segments to contribute significantly to the capacity addition. Nevertheless, challenges remain on the execution front with respect to delays in land acquisition and transmission connectivity, which, if sustained, could hamper the sector’s prospects,” said Girishkumar Kadam, Senior Vice President & Co-Group Head – Corporate Ratings at ICRA.
Energy storage demand to surge by 2030
ICRA also highlighted the growing need for energy storage solutions, estimating a requirement of 50 GW of energy storage capacity by 2030. This demand is expected to be met through a combination of battery energy storage systems (BESS) and pumped storage hydro projects (PSP).
India’s 2030 renewable energy goal India has set an ambitious target of achieving 500 GW of renewable energy capacity by 2030. While progress is steady, addressing execution challenges such as land acquisition and transmission infrastructure remains critical to achieving this milestone.
