Renewable, Nuclear Energy Additions Boost India's Power Capacity Growth In April-May

(MENAFN- Live Mint) New Delhi: India's power sector added a net capacity of about 6.9 GW in April and May, most of it in the renewable energy space.

Data from the Central Electricity Authority showed 6.45 GW of renewable energy capacity was added in the first two months of this financial year. This is more than double the 3 GW of renewable energy capacity added in the corresponding months of 2024-25.

About 700 MW of nuclear power capacity and 200 MW of large hydro capacity were also added in April and May.

No thermal capacity was added in April and May, while about 430 MW capacity was retired.

Installation of renewable energy capacity gained momentum in previous months as developers rushed to complete projects before the end of a waiver on transmission charges for inter-state transmission systems for renewable projects, said sector experts.

A 100% waiver on transmission charges for solar and wind power projects ended in June. Projects completed by the deadline will benefit from the 100% waiver for the next 25 years. Introduced in 2010, the waiver was amended and extended several times.

India is aiming for 500 GW of non-fossil power generation capacity by 2030. With the latest additions, India's installed renewable energy capacity, including large hydro projects, stood at 226.75 GW, taking the country's total non-fossil capacity to 283.45 GW.

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India's total power generation capacity stands at 475.59 GW, with coal providing the baseload power. The government aims to bid and install about 50 GW of capacity annually to achieve the 500 GW non-fossil target.

India's thermal power capacity stands at 240 GW, with coal and lignite comprising 219.3 GW of it.

India is heavily reliant on coal for a substantial portion of its energy production, Eduard Sala de Vedruna, head of research, energy transition, sustainability and services, S&P Global Commodity Insights, noted in a statement dated 30 June.

However, there is a strong push towards diversifying the energy mix with an increased focus on renewable sources such as solar and wind, he said.

Describing India's 2030 target as achievable, Eduard, however, said:“In our base case forecasts, the target date may shift to 2032 instead of 2030. Currently, the total installed renewable capacity has surpassed the 200 GW mark. These efforts are part of a broader strategy to enhance energy security, reduce dependence on imported fuels, and mitigate environmental impacts.”

S&P Global Commodity Insights said India needs to address key energy-related issues such as infrastructure constraints, financial health of power distribution companies, and regulatory hurdles.

Additionally, India needs significant investment in grid modernization and energy storage solutions to support the integration of renewable energy, Eduard said.

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