RE capacity addition improved to 20.1
GW in 5M FY2026 from 9.0 GW in 5M
FY2025 driven by a large project
pipeline and expiry of waiver on interstate transmission charges. The
capacity addition is likely to further
scale-up to over 35.0 GW in FY2026,
driven by growing demand for
electricity in the country.
- While the project pipeline remains
strong, there is a delay in signing
PPAs/PSAs by bidding agencies, which
in turn has slowed down the bidding
process over the past few months.
- The recent imposition of 50% tariffs by
the US on India would adversely affect
the competitiveness of Indian OEMs
and in turn our export volumes.
The reduction of GST rates for solar PV
modules and wind turbine generators
to 5% from 12% is expected to reduce
the capital cost for solar and wind
power projects by about 5%.
Exhibit : Trends in cumulative installed renewable capacity including large
hydro (GW)
Source: ICRA Research, Central Electricity Authority (CEA), Ministry of New & Renewable Energy (MNRE)
