India's Renewable Energy Surge: A Strategic Shift Amid Climate and Power Demand Dynamics

With geopolitics shaping the agenda on energy security, Jefferies projects India will surge its renewable energy capacity to 359 gigawatts between fiscal years 2025 and 2030. This optimistic report comes as the nation braces for a recovery in power demand after a phase of subdued growth rates.

The study predicts that by fiscal year 2027, power demand will rebound to a six percent growth rate, attributed to the normalization of industrial activity and specific climate phenomena. Notably, the 2026 monsoon season could accelerate national power consumption, with a 60 percent chance of an El Nino event potentially boosting energy use across various sectors.

Despite the focus on green energy, the government is also expanding thermal capacity, aiming to add 97 gigawatts by fiscal years 2034-35. Simultaneously, solar manufacturing is experiencing growth through government initiatives like the PM Suryaghar rooftop solar and PM Kusum agri-pump programs, both contributing significantly to annual solar installations.

The government is further pushing for domestic manufacturing with mandates for using domestic content, including solar ingots and wafers, by June 2028. This strategic shift promises benefits for companies ready to invest in backward integration, despite the capital-intensive aspect.

Presently, a shortfall in domestic cell production benefits early players in the manufacturing sector, enabling steady profitability. (ANI)