India to add over 35 GW of renewable capacity annually by 2026
POWER & RENEWABLE ENERGY

India to add over 35 GW of renewable capacity annually by 2026

India is set to surpass annual renewable energy (RE) capacity additions of 35 GW over the next two years, driven by a robust project pipeline exceeding 100 GW, according to CareEdge Ratings. In FY24, the country added 18.5 GW of RE capacity, marking a 21% year-on-year growth.

Solar energy continues to dominate India’s RE landscape, accounting for 59% of the sector’s capacity mix as of September 2024, up from 15% in March 2016. India's solar module manufacturing capacity stands at 70 GW, while cell manufacturing capacity is at 8 GW as of March 2024. Annual solar capacity additions averaged 21 GW on a Direct Current (DC) basis over the past two years. Over the next two to three years, rooftop, hybrid, and off-grid solar projects are expected to contribute 20 GW to capacity growth. Additionally, 4-5 GW of solar open access projects are anticipated, spurred by corporate ESG goals and the economic viability of commercial and industrial (C&I) ventures.

The solar equipment sector is poised for transformative growth, with projected capital expenditures of nearly Rs 1 trillion over the next three to five years. This includes Rs 700 billion in debt funding. Significant manufacturing expansions are planned, with upcoming capacities of 50 GW for solar cells and 80 GW for modules requiring Rs 320 billion and Rs 120 billion, respectively. An additional Rs 550 billion is allocated for 40 GW of wafer and 25 GW of polysilicon production under the Production Linked Incentive (PLI) scheme. Jatin Arya, Director, CareEdge Ratings, highlighted the sector's potential, stating, "India's solar market is on the cusp of transformative growth, driven by strong policies and sustainability goals that will enhance domestic capacity and position the country as a global leader in solar manufacturing."

Despite this progress, challenges such as reliance on Chinese imports, supply chain disruptions, competitive pressures, and delays in project execution could pose hurdles. Mayuresh Karavade, Assistant Director at CareEdge Ratings, emphasised that the sector’s expansion is vital for India's energy security and environmental goals.

India’s renewable energy ambitions are supported by an annual tendering target of 50 GW through implementing agencies, with solar expected to take a leading role. Growth is attributed to corporate ESG focus, increased investments, proactive policy frameworks, and better financing opportunities. As the country accelerates its renewable energy transition, addressing systemic challenges and expanding domestic manufacturing will be critical to achieving its energy and sustainability targets. (ET)

India is set to surpass annual renewable energy (RE) capacity additions of 35 GW over the next two years, driven by a robust project pipeline exceeding 100 GW, according to CareEdge Ratings. In FY24, the country added 18.5 GW of RE capacity, marking a 21% year-on-year growth. Solar energy continues to dominate India’s RE landscape, accounting for 59% of the sector’s capacity mix as of September 2024, up from 15% in March 2016. India's solar module manufacturing capacity stands at 70 GW, while cell manufacturing capacity is at 8 GW as of March 2024. Annual solar capacity additions averaged 21 GW on a Direct Current (DC) basis over the past two years. Over the next two to three years, rooftop, hybrid, and off-grid solar projects are expected to contribute 20 GW to capacity growth. Additionally, 4-5 GW of solar open access projects are anticipated, spurred by corporate ESG goals and the economic viability of commercial and industrial (C&I) ventures. The solar equipment sector is poised for transformative growth, with projected capital expenditures of nearly Rs 1 trillion over the next three to five years. This includes Rs 700 billion in debt funding. Significant manufacturing expansions are planned, with upcoming capacities of 50 GW for solar cells and 80 GW for modules requiring Rs 320 billion and Rs 120 billion, respectively. An additional Rs 550 billion is allocated for 40 GW of wafer and 25 GW of polysilicon production under the Production Linked Incentive (PLI) scheme. Jatin Arya, Director, CareEdge Ratings, highlighted the sector's potential, stating, India's solar market is on the cusp of transformative growth, driven by strong policies and sustainability goals that will enhance domestic capacity and position the country as a global leader in solar manufacturing. Despite this progress, challenges such as reliance on Chinese imports, supply chain disruptions, competitive pressures, and delays in project execution could pose hurdles. Mayuresh Karavade, Assistant Director at CareEdge Ratings, emphasised that the sector’s expansion is vital for India's energy security and environmental goals. India’s renewable energy ambitions are supported by an annual tendering target of 50 GW through implementing agencies, with solar expected to take a leading role. Growth is attributed to corporate ESG focus, increased investments, proactive policy frameworks, and better financing opportunities. As the country accelerates its renewable energy transition, addressing systemic challenges and expanding domestic manufacturing will be critical to achieving its energy and sustainability targets. (ET)

Next Story
Infrastructure Energy

South West Pinnacle Wins Rs 30 Cr Oman Mining Contract

South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman’s investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle’s growing footprint in international exploration and mining services. ..

Next Story
Equipment

Godrej GEG Boosts Intralogistics with AI and Green Tech

Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20–25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..

Next Story
Infrastructure Urban

Amit Shah Inaugurates Key Projects Across Gujarat

Union Home Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat’s Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state. ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?