Indian Economy News

Crisil Ratings sees India's storage-backed renewable energy capacity at 25-30 gigawatts (GW) by FY28

India’s storage-backed renewable energy capacity is projected to rise sharply to 25–30 gigawatts (GW) by FY28 from almost nil in FY25, according to Crisil Ratings. This capacity addition will account for over 20% of the total renewable energy capacity expected over the next three years. The surge is attributed to the central government’s efforts to enhance the sustainability of renewable power, with energy storage playing a key role in addressing the intermittency of solar and wind generation. These projects, including dispatchable renewables and solar-plus-storage systems, are designed to provide power during peak demand periods and stabilise the grid.
The government’s focus on firm renewable energy has significantly influenced tender allocations, with storage-linked projects comprising 25% (11 GW) of capacity awarded by central agencies in 2024, up from 11% (2.5 GW) in 2023. Given high energy needs, these projects require an average oversizing of 2.5 times the contracted capacity, creating a pipeline of 34 GW. However, Crisil Ratings cautioned that all awarded capacity is still under development or in early construction phases, making them vulnerable to implementation risks. These include delays in offtake agreements, financing, and execution. The government’s strategic push and rising interest in green power stability are expected to drive long-term transformation in India's energy mix.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.