India plans to add 30-35 GW of renewable capacity in FY25

(MENAFN-KNN India)
New Delhi, June 18 (KNN) According to senior government officials, India is likely to see a significant increase in renewable energy generation capacity in the current financial year.

The country is expected to add 30-35 gigawatts (GW) of renewable energy generation capacity, surpassing the addition of 18.4 GW in the previous financial year, ET reported.

Renewables played a key role in adding power generation capacity in India in financial year 2023-24 (FY24), contributing 71% of the total capacity addition of 26 GW, the Energy, Environment and Water Council said.

The nodal agencies responsible for conducting auctions are likely to bid for 50 GW of renewable capacity in the current financial year 2024-25 (FY25).

This figure is consistent with the previously established trajectory for each of the five years starting in FY24. In the previous fiscal year, these agencies auctioned approximately 51 GW of renewable energy generation capacity.

Apart from central agencies, states and companies can also conduct separate auctions for commercial and industrial segments.

India has set an ambitious target of achieving 500 GW of renewable capacity by 2030.

According to a recent report by Moody’s Ratings, achieving this goal would require adding approximately 44 GW each year.

The report estimates that India will need investments ranging from $190 billion to $215 billion over the next seven years to reach its renewable energy capacity target.

Additionally, additional investments of $150 to $170 billion will be needed in electricity transmission, distribution and storage to accommodate incremental renewable energy capacity.

Renewables, excluding large hydro projects, currently contribute 146.65 GW to India’s total installed capacity of 444.8 GW.

Moody’s predicts that renewable energy and electricity transmission will continue to drive investment in the power sector over the next six to seven years.

The share of continuous and dispatchable renewable energy (FDRE), which enables programmable demand-based power supply, has increased in recent tenders since its introduction last year.

FDRE transforms the variable nature of renewable energy into a constant and available source by integrating it with energy storage systems, enabling 24/7 energy delivery.

As JMK Research & Analytics stated in February, FDRE enables demand-based energy purchases, creating a viable alternative to coal, water and other dispatchable energy technologies.

Since its launch in mid-2023, over 90% of pumped storage tenders issued in India have been FDRE tenders.

(KNN Office)

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