According to ICRA Limited, India is set to boost its installed renewable energy (RE) capacity from 135 GW as of December 2023 to about 170 GW by March 2025. The growth trajectory is due to substantial tendering activity, with more than sixteen GW of projects already bid out and an additional 17 GW in the pipeline. This aligns with the government’s target of bidding out 50 GW annually, as announced in March 2023.
ICRA anticipates a notable increase in the contribution of RE, driven by efforts to mitigate intermittency issues through the development of Round-the-Clock (RTC) supply from renewable sources. The feasibility of RTC projects appears more favourable with the utilization of pumped storage projects (PSP) compared to battery energy storage systems (BESS).
The RE sector is poised for significant expansion, with an estimated capacity addition of 18-20 GW in FY2024, rising to 23-25 GW in FY2025, predominantly led by the solar power segment. As reported by ETEnergyworld.com, the optimistic outlook is bolstered by a considerable decrease in the prices of solar PV cells and modules. Additionally, regulatory measures such as the extension of the approved list of module manufacturers (ALMM) order and project timelines further support this trend.
