+
C&I Renewables To Reach 57 GW By FY28
POWER & RENEWABLE ENERGY

C&I Renewables To Reach 57 GW By FY28

India's commercial and industrial (C&I) renewable energy capacity is expected to reach 57 GW by FY28, from about 40 GW by FY26, a 17 GW increase in two years as corporate decarbonisation and tariff arbitrage boost demand. Crisil Ratings said growth will be supported by favourable long-term power purchase agreement (PPA) tariffs relative to grid tariffs, corporate net-zero commitments, renewable purchase obligations (RPOs) and attractive developer returns. The change reflects rising direct procurement by industry.

The Green Energy Open Access (GEOA) Rules, 2022 have enabled industrial and commercial entities to source renewable power directly over existing transmission and distribution infrastructure, accelerating adoption. Crisil Ratings noted that major industrial states have announced open access policies and are offering rebates on cross-subsidy, wheeling and state transmission utility charges for intra-state supply, lowering the landed cost of power by 25 to 30 per cent versus on-grid tariff. These measures have supported rapid capacity addition.

Energy-intensive sectors such as steel, cement and data centres are leading the shift to meet internal net-zero targets and RPO obligations. Private equity-backed developers are expected to account for much of the incremental capacity because C&I projects offer higher return on equity than utility-scale projects. Crisil Ratings reported that rated C&I portfolios typically have an average PPA tenure of around 15 years providing revenue visibility.

About 65 per cent of rated capacity is tied to counterparties with High Safety credit profiles and the weighted average debt service coverage ratio stands at 1.4 times over the next two fiscals. Infrastructure constraints such as limited intra-state transmission capacity and right-of-way issues remain bottlenecks that can delay project timelines. States also face a trade-off as open access incentives may reduce distribution utilities' revenues from high-paying C&I users.

Any recalibration of incentives could push up landed power costs, though tariffs are likely to remain competitive against grid supply. With India targeting 500 GW of non-fossil capacity by 2030 the C&I segment is positioned as a central pillar for clean energy goals and offers stable returns and cost savings to corporates.

India's commercial and industrial (C&I) renewable energy capacity is expected to reach 57 GW by FY28, from about 40 GW by FY26, a 17 GW increase in two years as corporate decarbonisation and tariff arbitrage boost demand. Crisil Ratings said growth will be supported by favourable long-term power purchase agreement (PPA) tariffs relative to grid tariffs, corporate net-zero commitments, renewable purchase obligations (RPOs) and attractive developer returns. The change reflects rising direct procurement by industry. The Green Energy Open Access (GEOA) Rules, 2022 have enabled industrial and commercial entities to source renewable power directly over existing transmission and distribution infrastructure, accelerating adoption. Crisil Ratings noted that major industrial states have announced open access policies and are offering rebates on cross-subsidy, wheeling and state transmission utility charges for intra-state supply, lowering the landed cost of power by 25 to 30 per cent versus on-grid tariff. These measures have supported rapid capacity addition. Energy-intensive sectors such as steel, cement and data centres are leading the shift to meet internal net-zero targets and RPO obligations. Private equity-backed developers are expected to account for much of the incremental capacity because C&I projects offer higher return on equity than utility-scale projects. Crisil Ratings reported that rated C&I portfolios typically have an average PPA tenure of around 15 years providing revenue visibility. About 65 per cent of rated capacity is tied to counterparties with High Safety credit profiles and the weighted average debt service coverage ratio stands at 1.4 times over the next two fiscals. Infrastructure constraints such as limited intra-state transmission capacity and right-of-way issues remain bottlenecks that can delay project timelines. States also face a trade-off as open access incentives may reduce distribution utilities' revenues from high-paying C&I users. Any recalibration of incentives could push up landed power costs, though tariffs are likely to remain competitive against grid supply. With India targeting 500 GW of non-fossil capacity by 2030 the C&I segment is positioned as a central pillar for clean energy goals and offers stable returns and cost savings to corporates.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code