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

C&I Renewables To Surge To 57 GW By FY28

India's commercial and industrial renewable energy capacity is projected to reach 57 gigawatt (GW) by FY28, up from about 40 GW expected by the end of FY26 and representing a 17 GW increase in two years as corporate decarbonisation and tariff arbitrage spur demand. Crisil Ratings projects that favourable long-term power purchase agreement (PPA) tariffs versus grid supply, corporate net-zero commitments and renewable purchase obligations will underpin growth. The agency adds that attractive developer returns and strong counterparty credit profiles support the expansion.

The Green Energy Open Access (GEOA) Rules, 2022 have allowed industries and commercial establishments to source renewable power directly using existing transmission and distribution infrastructure, accelerating uptake. Crisil Ratings notes that several industrial states have announced open access policies and that intra-state rebates on cross-subsidy, wheeling and state transmission utility charges can lower landed power costs by 25-30 per cent compared with on-grid tariffs. These incentives have materially improved project economics for corporate buyers.

Energy-intensive sectors such as steel, cement and data centres are early adopters as they align with internal net-zero targets and RPO compliance. Private equity backed developers are expected to lead incremental additions because C&I projects offer higher return on equity than utility scale plants and benefit from better tariffs and stronger counterparties. Crisil Ratings reports an average PPA tenure of 15 years, about 65 per cent of rated capacity tied to high safety counterparties and a weighted average debt service coverage ratio (DSCR) of one point four times over the next two fiscals.

Infrastructure constraints and policy continuity remain risks, with limited intra-state transmission capacity and right-of-way issues affecting timelines. States face a trade-off since open access incentives can reduce distribution utilities' revenues from high paying C&I users and any withdrawal of incentives could push up landed power costs, though tariffs should remain competitive against grid supply. With India targeting 500 GW of non-fossil capacity by 2030, the C&I segment is a central pillar in meeting clean energy goals while offering stable returns to developers and cost savings to corporates.

India's commercial and industrial renewable energy capacity is projected to reach 57 gigawatt (GW) by FY28, up from about 40 GW expected by the end of FY26 and representing a 17 GW increase in two years as corporate decarbonisation and tariff arbitrage spur demand. Crisil Ratings projects that favourable long-term power purchase agreement (PPA) tariffs versus grid supply, corporate net-zero commitments and renewable purchase obligations will underpin growth. The agency adds that attractive developer returns and strong counterparty credit profiles support the expansion. The Green Energy Open Access (GEOA) Rules, 2022 have allowed industries and commercial establishments to source renewable power directly using existing transmission and distribution infrastructure, accelerating uptake. Crisil Ratings notes that several industrial states have announced open access policies and that intra-state rebates on cross-subsidy, wheeling and state transmission utility charges can lower landed power costs by 25-30 per cent compared with on-grid tariffs. These incentives have materially improved project economics for corporate buyers. Energy-intensive sectors such as steel, cement and data centres are early adopters as they align with internal net-zero targets and RPO compliance. Private equity backed developers are expected to lead incremental additions because C&I projects offer higher return on equity than utility scale plants and benefit from better tariffs and stronger counterparties. Crisil Ratings reports an average PPA tenure of 15 years, about 65 per cent of rated capacity tied to high safety counterparties and a weighted average debt service coverage ratio (DSCR) of one point four times over the next two fiscals. Infrastructure constraints and policy continuity remain risks, with limited intra-state transmission capacity and right-of-way issues affecting timelines. States face a trade-off since open access incentives can reduce distribution utilities' revenues from high paying C&I users and any withdrawal of incentives could push up landed power costs, though tariffs should remain competitive against grid supply. With India targeting 500 GW of non-fossil capacity by 2030, the C&I segment is a central pillar in meeting clean energy goals while offering stable returns to developers and cost savings to corporates.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code