India is likely to add 30 GW of power generation in FY25, with 80% from renewable energy sources: ICRA – EQ
In Short : ICRA forecasts India will add 30 GW of power generation in FY25, with 80% sourced from renewables. This significant increase highlights the country’s focus on expanding clean energy capacity to meet growing electricity demand and sustainability targets.
In Detail : India plans to add 30 GW of power generation capacity in FY25, driven largely by renewable sources, according to rating agency ICRA. The demand for power in India is constantly rising, and the country is moving towards ramping up capacity addition across the sector.
India is projected to add 30 gigawatt of power generation capacity in the current financial year, with 80% of it likely to come from renewable energy sources such as solar, wind, and hydroelectric power. This prediction comes from the top rating agency Icra.
Numerous upcoming projects and affordable solar module pricing are the key drivers of the projected 25 GW addition of renewable energy capacity.
With more than 80% of the new capacity coming from renewable energy, showcases the country’s shift towards sustainable and environmental-friendly energy sources.
There is a perpetual rise in demand for power in India, and the country is moving towards ramping up capacity addition across the sector. The government is also encouraging renewed investments in thermal power projects, setting a target of adding 80 GW of thermal power capacity by 2032.
According to the rating agency, the thermal capacity addition during this year will be made possible by state and central utilities that have improved load factor (PLF).
“Icra’s outlook for the thermal power segment is stable, following the improvement in the thermal PLF and healthy demand growth, thereby improving visibility on signing of new power purchase agreements(PPAs),” it said.
The agency expects the capacity utilisation of thermal power plants across India to increase slightly to 70% in FY25 from 69% in FY24. This is mainly due to higher electricity demand and only a small increase in thermal power plant capacity.
According to Vikram V, Vice president at ICRA, if the demand remains constant at 6.5-7% until 2030, an additional 40-50 GW thermal capacity will be needed to meet the demand. Currently, there are about 35 GW of thermal capacity under development, meaning, there is a requirement to develop new thermal power capacity to keep up with the expected demand.
Adding 30 gigawatt of power generation capacity this fiscal year will be achieved through the combined efforts of India’s leading thermal power companies, renewable energy firms, and power transmission and distribution entities.
The thermal power company, NTPC Ltd., has reported a 7.61% year-on-year revenue growth, reaching ₹47,622 crore for the quarter ending March 31, 2024. Its stock has surged 15.71% year-to-date and has jumped 91.15% over the past year.
Adani Power Ltd.’s revenue grew by 30.48% year-over-year to ₹13,363.99 crore in the quarter ended March 31, 2024. Its shares have grown by 40.28% year-to-date and have risen over 181% in the past year.
Tata Power Company Ltd.’s revenue grew by 27.24% year-over-year in the quarter ended March 31, 2024, reaching ₹15,847 crore. Its stock gained 32.85% year-to-date and increased by 95.63% over the past year.
