New Delhi, Apr 18 (BNP): Jefferies has projected a significant expansion in India’s renewable energy capacity, estimating it could reach around 359 GW between FY25 and FY30. The outlook reflects a growing emphasis on energy security, evolving demand patterns, and continued policy support for clean energy development.
According to the report, India’s power demand is expected to recover strongly, with growth potentially reaching around 6% by FY27, supported by improving industrial activity and broader economic normalization. Seasonal and climatic factors are also expected to influence consumption trends in the coming years.
Weather conditions linked to a likely El Niño phase during the upcoming monsoon season could further impact electricity usage. Lower rainfall typically increases demand from households and agriculture, where electricity is widely used for cooling, irrigation, and pumping activities.
While renewable energy remains a central pillar of India’s long-term energy strategy, the country continues to expand thermal capacity to ensure grid stability and meet rising demand. Additional thermal power projects are planned over the next decade to support a balanced and reliable energy mix.
The report also highlights strong momentum in domestic solar manufacturing, supported by government-led initiatives such as rooftop solar programs and agricultural solar pump schemes. These initiatives are increasing installed capacity while encouraging greater use of locally manufactured components.
Policy measures aimed at strengthening domestic production of key solar materials, including ingots and wafers, are expected to further deepen backward integration in the renewable energy supply chain. However, the capital-intensive nature of these investments may favour companies with strong financial capacity.
Overall, the report suggests that India’s energy transition will be shaped by a combination of rising demand, policy support, manufacturing growth, and the need to maintain energy security in a changing global environment.
