THE GREEN LEAP

India's green energy surge is impressive, but can it balance renewables with reliable thermal power for consistent growth?

- By ASHISH SINHA

THE BUZZ AROUND India's energy transition is undeniable. We're witnessing a remarkable shift towards cleaner, greener energy sources, with solar and wind power leading the charge. It's a story of ambitious targets, evolving technologies, and a nation determined to power its future sustainably. But as we embrace the sun and the wind, how is India ensuring a consistent and reliable energy supply for its rapidly growing economy?

It's a complex dance, and experts suggest that while renewables are the undeniable future, traditional power sources still play a crucial role in the immediate to medium term. Let's dive into what the latest reports from CRISIL Ratings and ICRA tell us about this fascinating energy evolution.

Renewable Surge Ahead

The numbers are impressive. ICRA reports that renewable energy (RE) capacity addition in India saw a significant jump, reaching 28.7 GW in fiscal year 2025, up from 18.5 GW in fiscal year 2024. And the momentum is expected to continue, with over 32 GW projected for fiscal year 2026. This surge is fuelled by a combination of factors, including a large project pipeline, lower solar PV module prices, and government initiatives.

“The renewable energy sector remains robust, driven by strong policy support, cost-competitiveness of renewables, and the increasing adoption by commercial and industrial customers,” says Girishkumar Kadam, Senior VP & Group Head at ICRA. “However, challenges on the execution front, such as land acquisition, transmission infrastructure, and timely signing of power purchase agreements (PPAs), need continuous attention.”

CRISIL Ratings echoes this optimism, predicting that India's annual wind power capacity addition will more than double to an average of 7.1 GW in the next two fiscal years, compared to 3.4 GW in fiscal years 2023-25. This is expected to boost the installed wind capacity to approximately 63 GW by fiscal year 2027.