Renewable Energy Dominates New Power Capacity Additions, Reaching 86% in FY25: Report

Renewable energy is driving the expansion of India's power sector, accounting for nearly 86% of the 33 GW capacity added in the 2024-25 financial year (FY25), according to a recent report. The report indicates that India’s total installed power capacity has now reached 475 GW, with an impressive 33 GW added in the past year. A significant portion of this increase can be attributed to renewable energy, underscoring the country’s on-going transition to cleaner, more sustainable power sources.

It said, "India's installed power capacity reached 475 GW in FY25, with an impressive 33 GW added over the past year. Notably, 86% of this capacity expansion came from renewable sources." As a result, the share of renewable energy in India's total installed capacity has increased to 36%, reflecting a consistent upward trend over the past few years.

In March 2025, India expanded its power capacity by 5 GW, all sourced from renewables. This significant increase in just one month underscores the growing policy support and rising investor confidence in the renewable energy sector. The report highlights that this trend signals a significant structural shift in India’s energy landscape, with renewables emerging as a cornerstone. This momentum is poised to drive growth across companies throughout the clean energy value chain.

The report also emphasised recent trends in power generation. It noted that India's power generation growth, which had been robust at approximately 6-7% year-on-year (YoY) in February and March 2025, has since slowed to around 2% YoY in April 2025. Although power generation showed no growth in the first 10 days of April, there were signs of improvement as it picked up in the latter half of the month.