New Delhi: India could add 45-50 gigawatts (GW) of renewable energy capacity each year over the next two years as a large pipeline of projects moves closer to securing power purchase agreements (PPAs), according to Nuvama Research, ANI reported.
The research firm said about 86 GW of renewable capacity already has PPAs, while another 140 GW is yet to be tied up through such agreements. This pipeline could support a faster pace of renewable capacity additions over the next two years.
“Given around 86 GW of existing PPAs, we believe annual renewable energy additions of around 45-50 GW over the next two years are achievable, including solar rooftop additions,” Nuvama said in its latest power sector update.
About 226 GW of renewable capacity has been tendered since FY23, of which around 126 GW has been awarded. However, only about 86 GW, or 38% of the total tendered capacity, currently has PPAs, leaving nearly 140 GW awaiting agreements.
Renewable capacity additions have already picked up pace, with 13.3 GW added so far in FY27. India’s total installed power capacity stood at around 549 GW at the end of June 2026.
The outlook comes as electricity demand continues to grow. Power consumption increased 11.2% year-on-year to around 171 billion units in July 2026, while peak demand reached nearly 270 GW, compared with 220 GW a year earlier.
Higher demand also pushed up the use of thermal power plants. The average utilisation rate of thermal plants rose to 68.2% in July from 62.3% in the same month last year.
Thermal power accounted for about 67% of the generation mix in July, while renewable energy contributed around 20%, according to the report.
Nuvama said the overall demand environment remained favourable and maintained a positive outlook for the thermal power, renewable energy and transmission sectors.
The report, however, pointed to execution challenges in transmission projects, with shortages of workers continuing to affect engineering, procurement and construction companies. Nuvama expects these constraints to ease in the second half of FY27, which could help improve project execution.
Power prices also continued to vary significantly during the day. Average prices during solar generation hours were around Rs 2.8 per kWh in July, while prices during non-solar evening hours climbed to around Rs 7.5 per kWh, ANI stated.
