India's Renewable Energy Capacity Set to Surge: ICRA Predicts 170 GW by March 2025

India's renewable energy sector is poised for significant growth, according to a recent report by rating agency ICRA. They estimate the nation's installed renewable energy capacity, excluding large hydro plants, to reach 170 gigawatts (GW) by March 2025, marking a substantial rise from the 135 GW recorded in December 2023.


This impressive growth is projected to be driven by a combination of factors. ICRA emphasizes the crucial role of wind and solar power projects, particularly those incorporating energy storage systems. These advancements can help to address the inherent intermittency of renewable energy sources, ensuring a more reliable and consistent power supply.

However, challenges remain in the wind energy segment, which ICRA acknowledges. They highlight the need for continued efforts to improve the financial health of state power distribution companies. Prompt payments from distribution companies are critical for ensuring smooth project execution and sustained growth in the renewable energy sector.

Despite these challenges, the overall outlook for India's renewable energy sector is positive. ICRA's report underlines the potential for significant capacity expansion by March 2025, contributing to cleaner energy generation and enhancing the share of renewable energy plus large hydro in India's electricity mix.