India’s installed renewable energy capacity is expected to reach 250 GW by March 2026, up from 201 GW as of September 2021, according to credit ratings ICRA. The increase is driven by a large project pipeline of over 80 GW, which improved tendering activity in FY24.
The current fiscal has high tendering activity, in line with the government’s 50 GW annual bidding trajectory. The healthy renewable project pipeline and favorable solar PV cell and module prices are expected to improve renewable energy capacity addition to over 26 GW in FY2025 from 19 GW in FY2024.
This will further scale up to 32 GW in FY2026, mainly driven by the solar power segment and the impending expiry of the waiver on inter-state transmission system (ISTS) charges in June 2025. The rise in renewable energy capacity over the next five years is estimated to increase the share of renewable energy (RE) and large hydro in all-India electricity generation from 21% in FY2024 to over 35% in FY2030.
