New Delhi: Jefferies expects India’s renewable energy capacity to reach 359 GW by FY25–30, as the country steps up efforts to strengthen energy security and prepares for a recovery in power demand.
The report said electricity demand is likely to pick up, with growth projected at around 6% by FY27, supported by improving industrial activity and weather-related factors, ANI reported.
Weather conditions could play a key role in shaping demand. Citing forecasts from the International Research Institute for Climate and Society, the report noted a 60% chance of an El Niño event during the June to September 2026 monsoon period. Such conditions often lead to lower rainfall, which increases electricity use in homes and agriculture, especially for cooling and irrigation.
While the focus remains on expanding clean energy, the government is also planning to add 97 GW of thermal power capacity by 2034–35 to ensure a balanced energy mix. This would be a significant increase over the 247 GW capacity recorded at the end of FY25.
Solar manufacturing within the country is also gaining pace, supported by policy measures and subsidy schemes. The PM Suryaghar rooftop solar programme added about 9 GW in FY26, while the PM Kusum scheme contributed 7.5 GW through solar-powered agricultural pumps. Together, these initiatives account for nearly 30% of annual solar installations, according to ANI.
The report said government support for domestic manufacturing is driving demand for solar equipment, while planned rules mandating the use of locally made components from June 2028 are expected to strengthen the supply chain.
At present, limited domestic production capacity is allowing early entrants in the solar manufacturing sector to maintain strong margins.
