RE capacity in India is expected to grow at CAGR of 18% over the next decade-HSIE report

According to a report by HSIE (HDFC Securities Institutional Equities), renewable energy (RE) capacity in India is expected to grow at a compound annual growth rate (CAGR) of 18% over the next decade, adding approximately 144 GW of RE capacity by 2031. The report suggests that the increase in RE capacity is driven by policy support, declining costs of renewable energy, and increasing environmental concerns.

The report states that solar power is expected to account for the majority of RE capacity additions, followed by wind and hydro power. It predicts that solar power will add around 100 GW of capacity by 2031, while wind and hydro power will add approximately 30 GW and 14 GW, respectively. The report also notes that offshore wind power and storage technologies are expected to play an increasingly important role in India’s RE mix in the coming years.

The report highlights that India’s RE growth potential is significant, as the country has favorable conditions for both solar and wind power generation. The report suggests that the government should continue to provide policy support and incentives to encourage RE development, such as subsidies, tax breaks, and accelerated depreciation.

The report also notes that the private sector is likely to play a significant role in RE development, as it can provide the necessary investment and expertise to support the growth of the sector. The report suggests that the government should focus on improving the investment climate for the private sector, such as by reducing regulatory barriers and providing a stable policy framework.

Overall, the HSIE report suggests that India’s RE sector is poised for significant growth over the next decade, driven by favorable policy support, declining costs, and increasing environmental concerns. However, the report also notes that there are several challenges to overcome, such as financing, grid integration, and land acquisition.