India Ratings and Research (Ind-Ra) said it expects India’s annual renewable capacity additions to remain at 15 GW to 18 GW in fiscal 2025 and fiscal 2026. It said 75% to 80% of annual installations, or up to 14.5 GW, will come from solar and around 20% from wind. Installations will be driven by a significant reduction in equipment prices, ongoing policy support, the availability of liquidity, and the investment plans of large corporate players.“However, the execution timelines of renewable capacity addition would continue to hinge on the regulatory stance towards import duties on cell and modules, support towards domestic cells and modules manufacturing, and indigenization push towards domestic equipment sourcing,” said Ind-Ra.
The transition to renewables requires the deployment and development of energy storage capacity, given the intermittent nature of renewable energy for grid stability. Ind-Ra said it expects pumped storage hydro power projects to emerge as a viable solution, given that battery storage is currently economically less viable.
