India’s energy demand to rise 5.5% in FY25, renewable capacity to lead

25 Nov 2024 CW Team

Thermal power maintained its dominance, contributing 73% of generation during the first seven months of FY25. Thermal power plant load factors (PLFs) are expected to average 69-70% for the fiscal year. Capacity additions in thermal energy are estimated at 6-7 GW, with 29 GW under construction and 50 GW planned by 2032. Renewables, including large hydro, now represent 45% of India’s total installed capacity, which reached 453 GW by September 2024. Renewable energy’s share in generation is anticipated to rise to 23% in FY25. Solar energy leads the growth, with 11 GW installed in H1FY25 and 28-30 GW expected by the fiscal year's end.

The rising share of solar energy underscores the need for robust storage solutions to balance energy supply during non-solar hours. On May 23, 2024, peak demand revealed this challenge: while total demand hit 235 GW at 3 PM, thermal power peaked at 176 GW by 11 PM due to limited renewable availability. Ind-Ra projects India will require 8-12 GWh of storage by 2027, scaling up to 300-350 GWh by 2030, with 4-6 hours of capacity during evening peaks. Auctions for renewable projects with integrated storage reached 25 GW between April and October 2024, indicating a growing emphasis on firm and dispatchable energy solutions.

Improved coal stock levels have stabilised the merchant power market, with average day-ahead market prices dropping to Rs 4.83/unit in 7MFY25 from Rs 5.66/unit in 7MFY24. Ind-Ra expects near-term merchant prices to range between Rs 4.5 and Rs 5/unit. However, higher tariffs during evening peaks compared to solar hours highlight the urgency to address non-solar supply challenges.

India's renewable pipeline includes 80 GW under construction and 95 GW in development. Ind-Ra notes that renewable auctions and hybrid tenders will drive capacity expansion, supporting rising energy needs and reducing thermal dependency in the long term. To sustain this growth, the agency emphasises the importance of timely project execution, improved grid connectivity, and investments in storage to ensure reliable power supply during peak demand periods. (ET)

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

India's energy demand is expected to grow by 5.5% year-on-year in FY25, driven by a capacity addition of 32-35 GW, with renewable energy projects accounting for a significant share, according to India Ratings and Research (Ind-Ra). Peak power demand in May 2024 reached an all-time high of 250 GW but softened in Q2 due to favourable monsoons and slower industrial activity. Energy demand growth during the first seven months of FY25 stood at 4.75%, a decline from 7.4% in FY24 and 9.7% in FY23. Extreme weather conditions fuelled a 10.9% YoY surge in Q1FY25, while growth nearly stagnated at 0.1% in Q2. Thermal power maintained its dominance, contributing 73% of generation during the first seven months of FY25. Thermal power plant load factors (PLFs) are expected to average 69-70% for the fiscal year. Capacity additions in thermal energy are estimated at 6-7 GW, with 29 GW under construction and 50 GW planned by 2032. Renewables, including large hydro, now represent 45% of India’s total installed capacity, which reached 453 GW by September 2024. Renewable energy’s share in generation is anticipated to rise to 23% in FY25. Solar energy leads the growth, with 11 GW installed in H1FY25 and 28-30 GW expected by the fiscal year's end. The rising share of solar energy underscores the need for robust storage solutions to balance energy supply during non-solar hours. On May 23, 2024, peak demand revealed this challenge: while total demand hit 235 GW at 3 PM, thermal power peaked at 176 GW by 11 PM due to limited renewable availability. Ind-Ra projects India will require 8-12 GWh of storage by 2027, scaling up to 300-350 GWh by 2030, with 4-6 hours of capacity during evening peaks. Auctions for renewable projects with integrated storage reached 25 GW between April and October 2024, indicating a growing emphasis on firm and dispatchable energy solutions. Improved coal stock levels have stabilised the merchant power market, with average day-ahead market prices dropping to Rs 4.83/unit in 7MFY25 from Rs 5.66/unit in 7MFY24. Ind-Ra expects near-term merchant prices to range between Rs 4.5 and Rs 5/unit. However, higher tariffs during evening peaks compared to solar hours highlight the urgency to address non-solar supply challenges. India's renewable pipeline includes 80 GW under construction and 95 GW in development. Ind-Ra notes that renewable auctions and hybrid tenders will drive capacity expansion, supporting rising energy needs and reducing thermal dependency in the long term. To sustain this growth, the agency emphasises the importance of timely project execution, improved grid connectivity, and investments in storage to ensure reliable power supply during peak demand periods. (ET)

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Infrastructure Transport

05 Sep 2025

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Infrastructure Transport

05 Sep 2025

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..