India's Renewable Energy Capacity Addition Jumps 121% To 20 GW In Aprilaugust

(MENAFN- KNN India) New Delhi, Sep 30 (KNN) India has added a remarkable 20.1 gigawatts (GW) of renewable energy capacity between April and August of FY26 - a 123 % jump year-on-year, compared to just 9 GW in the same span last year.

This surge is being driven by a robust project pipeline and the end of interstate transmission charge waivers.

Ratings agency ICRA forecasts that total renewable capacity additions this fiscal year could surpass 35 GW, underpinned by rising power demand.

In FY25, India's renewable installations reached 28.7 GW, up from 18.5 GW in FY24 - aided by favorable solar module costs and the expiry of transmission charge waivers in June 2025.

While the outlook for the sector remains stable thanks to strong policy backing, competitive tariffs, and growing sustainability commitments among industries, several challenges persist.

These include land acquisition hurdles, delays in securing power purchase agreements (PPAs), and infrastructure bottlenecks in transmission.

The tendering pipeline is still substantial, with 40.2 GW auctioned in FY25 (against 47 GW in FY24). However, bid activity has softened recently: just 3.4 GW was auctioned in the first half of FY26, reflecting concerns over PPA delays between bidding agencies and state utilities (discoms).

Importantly, solar module import prices remain low (~8–9 cents per watt as of August 2025), even though domestic module rates hover at 15–17 cents due to regulatory constraints like the Approved List of Modules and Manufacturers (ALMM).

Moreover, the imposition of 50 % U.S. tariffs on Indian solar imports could undermine India's export competitiveness.

Looking ahead, momentum is expected to continue. India's Central Electricity Authority (CEA) reports a project pipeline of 142.8 GW, which should help sustain this growth trajectory.

(KNN Bureau)

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