New Delhi, November 20 (IANS). The share of electricity generated from renewable energy capacity in India’s energy production is expected to increase to more than 35 percent by FY30. This figure was 22.1 percent in FY 25. This information was given in a report released on Thursday.
The report said capacity is expected to increase by about 200 gigawatts between FY2025 and FY30.
Rating agency ICRA’s report said that this change will depend on many factors, including the implementation of existing projects and their PPA (Power Purchase Agreement), timely issuance of tenders for new renewable energy projects, etc.
According to ICRA, the outlook for the renewable energy sector remains “stable” due to strong policy support, improved tariff competitiveness and sustainability initiatives by large commercial and industrial (C&I) customers.
However, challenges remain on the implementation front, including land and transmission infrastructure, delays in signing PPAs, equipment prices and distribution utility finance.
The report revealed through channel check that contracts for 47.3 GW of renewable energy capacity were awarded in FY24. At the same time, this figure had reduced to 40.6 gigawatt in FY 25. Only 5.8 GW of contracts have been awarded in the first eight months of the current financial year. Apart from this, PPAs of 40-45 GW capacity have not been signed yet.
Girish Kumar Kadam, Senior Vice President, ICRA, said, “The decline in new project trends and the delay in signing of PPAs for large renewable energy capacity by the central nodal agencies clearly reflects the concerns over execution related to transmission connectivity available for the renewable energy sector. It is extremely important to focus on scaling up storage capacity and grid strengthening both within the state as well as at the inter-state level in a timely manner, as the energy “The share of renewable energy in the mix is increasing.”
–IANS
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