India’s renewable energy to grow at twice the pace than overall energy growth by 2030: CRISIL

New Delhi [India], October 16 (ANI): India’s renewable energy capacity is expected to grow at twice the rate of the country’s overall energy capacity growth, highlighted a report by CRISIL.

The report noted that by fiscal 2030, India’s renewable energy (RE) capacity, excluding large hydro projects, is projected to reach 360-370 GW, growing at a compound annual growth rate (CAGR) of 16.5 per cent-17 per cent.

While the overall power capacity of the country will grow by 7.5 per cent-8 per cent from the installed capacity of 442 GW as of March 2024.

The total installed power generation capacity in India was 442 GW at the end of March 2024, with renewable energy accounting for nearly 191 GW, including large hydroelectric projects.

“The overall capacity is expected to grow about 7.5 – 8 per cent from the installed capacity of 442 GW as of March 2024. The renewable energy capacity (excl. large hydro) is estimated to reach 360-370 GW by fiscal 2030 at a CAGR of 16.5 – 17.0 per cent.” said the report.

According to the report, this growth will be driven by favourable government policies, competitive tariffs, and the development of solar parks and green energy corridors.

As per the report the country is expected to add around 175-180 GW of solar capacity between fiscal years 2025 and 2030. Solar energy has been the key driver of this growth, with solar capacity reaching 82 GW by 2024, up from just 0.9 GW in 2012.

The report also mentioned that India’s peak electricity demand has surged, growing from 164 GW in fiscal 2018 to 243 GW in fiscal 2024, reflecting an average growth rate of 6.8 per cent.

Although the generation sector faced challenges in meeting this demand during fiscal 2023, resulting in a peak deficit of 4.2 per cent, but the report added that supply improved in fiscal 2024, reducing the deficit to mere 1.4 per cent.

Looking forward, the report noted that the power demand is expected to grow by 5.5-6 per cent over the next five years, driven by infrastructure investments, railway electrification, expanding metro rail projects, and the increasing adoption of electric vehicles.

“Despite the high base of preceding three years, CRISIL MI&A-Consulting expects power demand to grow by 5.5- 6.0 per cent in the next five years which will be supported by infrastructure-linked capex”. said the report

However, advancements in energy efficiency and off-grid renewable generation are likely to moderate demand growth. These developments position India as a key player in the global renewable energy transition, aligning with its goals for a sustainable and green energy future.