India's renewable capacity additions could hit 45-50 GW annually
India may add 45-50 GW of renewable capacity annually over two years, backed by a strong project pipeline and rising power demand.
India is likely to add around 45-50 gigawatts (GW) of renewable energy capacity each year for the next two years, according to a new analysis. The projection is supported by a substantial pipeline of projects that are yet to be tied to power purchase agreements (PPAs).
The research indicates that roughly 140 GW of renewable capacity is still awaiting PPAs, while about 86 GW of capacity already has agreements in place. This existing PPA base is seen as a key enabler for the anticipated acceleration in capacity additions, which would include solar rooftop installations.
Since the fiscal year 2023, about 226,000 megawatts (MW) of renewable capacity has been tendered. Of this, approximately 126,000 MW has been awarded, but only around 86,000 MW—or 38 percent of the total tendered volume—currently has PPAs. This leaves nearly 140,000 MW yet to be converted into formal agreements.
The momentum is already visible, with 13.3 GW added in the current fiscal year to date. India's total installed power capacity stood at roughly 549 GW at the end of June 2026.
Power demand remains robust, rising 11.2 percent year-on-year in July 2026 to about 171 billion units. Peak demand reached nearly 270 GW, up about 22 percent from 220 GW in July 2025. This surge has also improved thermal plant utilisation, with the all-India thermal plant load factor climbing to 68.2 percent in July from 62.3 percent a year earlier. Thermal generation currently accounts for around 67 percent of the mix, while renewables contribute about 20 percent.
While the overall outlook for generation and transmission is positive, the report flags execution challenges in the transmission segment, particularly labour shortages affecting EPC players. These constraints are expected to ease in the second half of the fiscal year, potentially smoothing project execution.
Electricity prices also showed significant variation across the day, with solar-hour prices around Rs 2.8 per kWh and non-solar evening prices rising to roughly Rs 7.5 per kWh in July.