India Adds 27 GW Renewable Energy Capacity in Five Months

India has made significant strides in its renewable energy journey, adding 27 GW of capacity between April and August 2025, according to a recent HSBC report. Of this, 20 GW was commissioned by August, highlighting strong momentum in clean energy development.

The Central Electricity Authority (CEA) reports that 142 GW of renewable energy projects are currently under construction. With the steady progress in commissioning state-level transmission lines, the pace of renewable project development is expected to accelerate further.

The report also highlights a surge in mergers, acquisitions, and potential public listings in the renewable sector, unlocking new capital for project execution. Additionally, innovative tenders are driving down the cost of energy storage, increasing the viability and reliability of renewable power. Notably, tariffs for solar-plus-storage systems have hit record lows at ₹2.70–2.76/kWh.

These tenders require developers to supply electricity during two peak hours in the morning and evening, alongside regular solar output. While tariff levels raise concerns about profitability, developers benefit from savings on land and infrastructure, along with the advantage of supplying free electricity during morning peak hours.

However, challenges remain. Over the past two years, India has conducted auctions for more than 90 GW of renewable capacity, but many of these projects have yet to sign Power Purchase Agreements (PPAs), creating uncertainty for developers. Moreover, the government has cancelled 11.4 GW of tenders due to low participation or high tariffs.

Looking ahead, electricity demand is expected to surge, driven by colder weather and a pickup in industrial activity. September demand has already surpassed that of 2023, with further increases projected for October and November.

India's renewable sector is poised for growth, but streamlined PPAs and supportive infrastructure will be key to sustaining momentum.