India Set for Major Green Shift as Renewables Poised to Exceed 35% of Power Mix by FY30: ICRA – EQ
In Short : ICRA projects that renewable energy will account for over 35% of India’s power generation mix by FY30, driven by strong capacity additions in solar and wind. Growing policy support, improved grid integration, and declining renewable tariffs are accelerating adoption. The rating agency notes that expanding storage and hybrid projects will further enhance reliability, strengthening India’s long-term clean energy transition.
In Detail : ICRA has projected that renewable energy will contribute more than 35 percent of India’s total power mix by FY30. This marks a significant rise from current levels, driven by rapid capacity additions. Solar and wind installations continue expanding at record pace nationwide. Strong policy support is helping accelerate project development. The outlook reflects confidence in India’s energy transition. Clean energy is set to play a central role in future power supply.
The rating agency highlights that solar energy will remain the largest contributor to this growth. Utility-scale solar parks and rooftop systems are both witnessing high adoption. Declining equipment costs are making projects more viable. Investors are showing strong interest in long-term renewable assets. The sector continues to attract domestic and international players. This strengthens India’s renewable growth momentum.
Wind capacity is also expected to rise substantially over the next few years. Hybrid projects that combine wind and solar are gaining popularity. These offer more stable generation profiles across seasons. Developers are increasingly choosing hybrid models for better returns. Government auctions are encouraging technological diversity. Grid integration strategies are improving steadily.
ICRA notes that large-scale energy storage will be critical for managing renewable variability. Battery systems can support evening peaks when solar generation drops. They help ensure round-the-clock renewable supply. India has already begun awarding major storage tenders. This will strengthen the reliability of clean energy. Storage is becoming an essential pillar of future power planning.
The report also highlights the importance of transmission expansion. Renewable-rich states need stronger connectivity to supply power to high-demand regions. Several green energy corridors are already in development. These will help ease curtailment issues faced by renewable developers. Improved transmission supports smoother power flow across regions. It also enhances grid resilience.
Hybrid and RTC (round-the-clock) renewable projects are expected to gain traction. These combine multiple technologies like solar, wind, and storage. They provide reliable output comparable to conventional power. Such project models are attracting strong investor interest. Long-term supply contracts help secure predictable revenue. They support the shift toward firm green energy.
ICRA emphasizes that renewable tariffs will remain competitive in future auctions. Lower equipment prices and better financing conditions are key contributors. Developers continue to optimize scale and operational efficiency. Cost benefits are passed on to distribution companies. This makes renewables attractive for states trying to reduce power costs. Affordability strengthens their long-term adoption.
The agency highlights that policy stability will be crucial for India’s success. Clear regulatory pathways encourage investment in new technologies. Government initiatives like PLI and grid modernization are adding momentum. The focus on domestic manufacturing is reducing import dependence. Strong policy alignment supports rapid capacity expansion. Stakeholder confidence is rising across the sector.
Overall, ICRA’s projection signals India’s accelerating shift toward a cleaner power system. With renewables set to cross 35 percent of the mix, the transition is gaining firm ground. Higher energy security, lower emissions, and stable power costs will follow. Continued investment in storage and transmission remains essential. India is positioning itself as a global renewable leader. The next decade will define the country’s clean energy trajectory.
