Indian renewable energy capacity to increase170 GW by March 2025: report

It will be backed by strong policy support and moderation in solar module prices.

The renewable energy capacity in India is expected to reach 170 GW by March 2025 from the 132 GW capacity recorded in October 2023, ICRA said in a study.

This will be supported by the significant improvement in tendering activity in the current fiscal with over 16 GW projects bid out so far and another 17 GW bids underway by the Central nodal agencies.

This also complies with the 50 GW annual bidding trajectory announced by the Government of India in March 2023.

Vikram V, Vice President & Sector Head - Corporate Ratings, ICRA, said the "sharp decline in solar PV cell and module prices, abeyance of the ALMM order till March 2024, and the timeline extension approved for solar and hybrid projects, are expected to lead to an improvement in RE capacity addition to 20 GW in FY2024 from 15 GW in FY2023."

"The decline in solar PV cell and module prices by 65% and 50%, respectively, over the past 12 months is leading to a healthy improvement in debt coverage metrics for the upcoming solar power projects," he added.