India’s Renewable Energy Boom: Capacity Poised to Surge to 180 GW by FY26

CRISIL report predicts significant government investment and robust project pipeline driving clean energy growth

The Indian government’s upcoming budget is being closely watched for signs of a renewed commitment to the country’s clean energy sector. A recent study by CRISIL, a leading Indian rating agency, suggests significant growth is on the horizon for renewable energy.

The report predicts double-digit capital expenditure (capex) allocation for the sector, with analysts expecting renewable power capacity to reach a staggering 180 gigawatts (GW) by fiscal year 2026 (FY26). Solar energy is expected to remain the dominant player in this growth.

India’s renewable energy journey has seen steady progress. From a capacity of 72 GW in FY20, the sector witnessed a 35% jump to 97 GW in FY22. By the end of FY24, the capacity had reached an impressive 130 GW.

CRISIL analysts credit a “healthy executable pipeline” of 75 GW with fueling a significant portion of the projected 50 GW capacity addition expected in FY25 and FY26. This pipeline is expected to contribute roughly 75% of the growth, with commercial and industrial (C&I) and rooftop solar installations making up the remaining 25%.

The report also highlights a surge in auctioned capacity, rising from 12 GW in FY23 to a significant 35 GW in FY24, reflecting a 2.5-fold increase. This indicates a growing appetite from investors in the renewable energy sector.

The findings from CRISIL’s study are likely to add fuel to the fire of anticipation surrounding the upcoming budget. With ambitious renewable energy targets and a burgeoning pipeline of projects, the government is expected to unveil policies that will further propel India’s clean energy transition.