India is about so as to add 75 gigawatt (GW) of renewable vitality in 2025-26 (FY26) and FY27, up 53 per cent from 49 GW added in FY24 and FY25, Crisil Scores stated. Investments in renewables are additionally anticipated to surge by 52 per cent from Rs 2.5 lakh crore to Rs 3.8 lakh crore in FY26 and FY27, largely on account of accelerating share of hybrid tasks which might be extra capital intensive, the rankings company stated. Nonetheless, delays in including enough transmission infrastructure might adversely influence future capability addition, it added.
“We count on the sturdy progress momentum within the renewables sector to proceed with 75 GW of capability to be added over this fiscal and the subsequent, taking the general capability to 233 GW by March 2027. This might be led by a robust pipeline of round 88 GW of utility tasks excellent as of March 2025,” Krishan Sitaraman, chief rankings officer at Crisil, stated.
Of the whole 75 GW renewable capability to be added over the subsequent two monetary years, round 37 per cent will come from hybrid and storage-linked tasks, considerably bigger than the 17 per cent share in FY24 and FY25. Hybrid tasks combine photo voltaic and wind capacities to assist extra constant technology, whereas storage-linked tasks use batteries and pumped hydro to avoid wasting extra energy technology for later use.
“The rising share of hybrid tasks is a key requirement on account of the intermittent nature of renewable energy, as photo voltaic technology occurs in the course of the daytime and wind energy is seasonal. Therefore, rising the share of renewables within the technology combine has a possible to disrupt the grid stability. Hybrid tasks, with or with out battery storage, present an optimum resolution to assist round the clock energy technology,” Sitaraman stated.
Crisil Scores stated investments in renewables had been recorded at Rs 1.8 lakh crore in FY22 and FY23, which elevated to Rs 2.5 lakh crore within the following two fiscals, and is anticipated to develop by half to Rs 3.8 lakh crore in FY26 and FY27. The surge in investments will partly be on account of rising share of hybrid and storage tasks, that are extra capital intensive.
A key problem dealing with the sector is the lack of transmission infrastructure to maintain tempo with capability addition. “The necessity for augmenting transmission capability to maintain tempo with the rising renewable capability is there. And therefore, we’re seeing an uptick in transmission venture awarding. That has ramped up considerably. If all of that will get carried out, then it will go a great distance in serving to renewable evacuation,” Sitaraman stated.
The transmission sector recorded capital expenditure price Rs 36,000 crore in FY25, greater than double of Rs 15,000 crore in FY24. Tenders price Rs 1 lakh crore had been awarded in FY25, in comparison with Rs 48,000 crore within the earlier monetary yr. Crisil has projected capex of between Rs 0.9-1 lakh crore in FY26 and FY27.
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“Nonetheless, there’s a danger of a shortfall due to the potential for delays in execution. These might come up because the nation is now implementing a a lot greater tempo of transmission tasks than seen previously. What’s projected to be executed in FY26 and FY27 is double of what we noticed within the earlier two years. That exposes tasks to danger of delays, particularly with respect to the provision of apparatus corresponding to transformers and different parts,” in keeping with Sitaraman.
Renewable tasks are additionally dealing with difficulties in securing patrons via renewable vitality implementing companies (REIAs), with not sufficient states signing energy buy agreements (PPAs).
“For a majority of the tasks awarded previously one to 2 years, the progress of energy buy has been sluggish, with solely 50 per cent of such PPAs closed as of March 2025. Nonetheless, we count on enchancment going ahead as India’s demand for energy, in addition to discoms’ renewable energy obligations, would improve additional whereas thermal capability addition will take time,” Sitaraman stated.
In response to a latest Grid-India useful resource adequacy report, the nation will add 45 GW within the ongoing FY26, led by photo voltaic (26.5 GW), wind (6.3 GW), coal (4.4 GW), battery vitality storage (3.3 GW), hydro (1.6 GW), pumped storage (1.5 GW), and nuclear (1.4 GW).
