India's Renewable Energy Sector Set for ₹6-7 Lakh Crore Investment Surge
India’s renewable sector to ride Rs 6L cr to Rs 7L cr investment wave
The Times Of IndiaImage: The Times Of India
India's renewable energy capacity is projected to grow to 310–315 GW by March 2028, driven by an investment wave of ₹6 lakh crore to ₹7 lakh crore. This growth will increase the share of renewables in the power mix to 45%–47%, significantly transforming the energy landscape.
- 01Renewable energy capacity in India expected to reach 310–315 GW by March 2028.
- 02Investment in renewables projected at ₹6 lakh crore to ₹7 lakh crore in FY27–FY28.
- 03Renewables will account for 45%–47% of India's power mix by 2028.
- 04Utility-scale projects will contribute 60% of new capacity additions.
- 05Delays in power purchase agreements and transmission readiness pose risks.
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India's renewable energy sector is poised for significant growth, with the combined installed capacity of solar and wind expected to reach 310–315 GW by March 2028, up from about 206 GW in March 2026. This expansion is anticipated to increase the share of renewables in the power mix to 45%–47%, compared to just 24% in FY2022. Analysts from Crisil project that investments in renewable energy will amount to ₹6 lakh crore to ₹7 lakh crore out of a total of ₹23 lakh crore to ₹24 lakh crore earmarked for key infrastructure in FY27–FY28, representing roughly 26%–29% of overall spending. Key drivers of this growth include a robust pipeline of over 95 GW of utility-scale projects and supportive policies aimed at enhancing commercial and industrial (C&I) installations. However, challenges such as delays in securing power purchase agreements (PPAs) and a transmission gap due to rapid capacity additions could hinder progress. Ensuring timely execution of projects will be crucial to mitigate risks associated with grid curtailment.
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The surge in renewable energy investments will create jobs and promote energy security in India, benefiting homebuyers and local businesses by potentially lowering energy costs.
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