Share of renewables in India`s overall energy mix expected to remain stable at 21% in FY25: Ind-Ra
India Ratings and Research (Ind-Ra) in its latest report has said that the share of renewables including large hydro in the country's overall energy mix is expected to remain stable at nearly 21 per cent in FY25. The balance will be largely contributed by thermal capacity. As per official data, as of December 2024, India's overall power generation capacity was at 462 GW, of which 209.444 GW was renewables including hydro.
Further, the agency said that it expects all-India energy requirement to grow 5-5.5 per cent year-on-year (yoy) during FY25, with incremental capacity additions of 30-35GW, largely led by renewables. It has also maintained a stable rating outlook for solar and wind projects for FY26, based on the historical generation profile (factoring volatility), regular payments from counterparties and comfortable internal liquidity.
The renewable energy capacity addition is expected to gain further traction in view of a strong pipeline (largely solar) and contribute 35-40 per cent to the generation mix by 2030. Bharath Kumar Reddy, Associate Director, Infrastructure, Ind-Ra, said ‘Given the uncertainty and intermittency in renewable energy projects, the need for round-the-clock power and to maintain grid stability, renewable tenders with hybrid/storage/round-the-clock tenders are expected to garner further traction. Furthermore, the government's impetus on the sector and favourable input prices are further expected to maintain a strong under construction pipeline.’
