New Delhi: India is set to witness a significant rise in the share of renewable energy (RE) in its power generation mix over the next few years. According to a fresh assessment by rating agency ICRA, the country’s renewable contribution is likely to exceed 35% by FY2030, marking a major shift in India’s long-term energy trajectory. This projection underscores the nation’s continued push to reduce carbon emissions and strengthen sustainable power infrastructure.
Surge in RE Capacity Additions
ICRA highlights that India has been expanding its renewable capacity at a robust pace. Solar and wind projects remain at the forefront of this growth, supported by competitive tariffs, improved financing conditions, and strong policy backing. Moreover, large-scale tenders issued by central and state agencies have created a substantial project pipeline, ensuring that RE additions will maintain steady momentum through the decade.
The agency also notes that hybrid and round-the-clock renewable projects—combining solar, wind, and energy storage—are helping to address issues of intermittency and grid stability.
Policy Support and Industry Confidence
ICRA’s report emphasises that government initiatives such as the Production Linked Incentive (PLI) scheme for solar manufacturing, revised renewable purchase obligations (RPOs), and accelerated transmission development are further boosting investor confidence. In addition, improved land availability mechanisms and faster approval processes are drawing more private players into the sector.
As per Financial Express, industry experts believe these reforms have positioned India to achieve one of the fastest renewable growth rates globally, even as power demand continues to rise.
Impact on Thermal Generation and Grid Operations
The increasing share of renewable energy will gradually reshape the dynamics of India’s power sector. With RE steadily expanding, the reliance on conventional coal-based generation is expected to moderate. Consequently, thermal plants may see reduced utilisation levels, prompting a shift toward flexible operations and efficiency upgrades.
ICRA also points out that transmission infrastructure and energy storage solutions will remain crucial to managing the growing inflow of variable renewable power. Strengthening inter-regional transmission corridors and scaling battery storage capacity will be essential steps to ensure grid reliability.
Outlook for the Coming Years
Looking ahead, ICRA projects a strong and steady expansion of renewable energy capacity between FY2025 and FY2030. The rating agency expects annual capacity additions to remain healthy, driven by both utility-scale projects and the rising adoption of rooftop solar across commercial, industrial, and residential segments.
Ultimately, as India advances toward its 500-GW non-fossil fuel capacity target for 2030, the renewable energy sector will actively shape the country’s future energy landscape.
