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Key Points

India’s power sector is undergoing a green transformation, with renewables contributing 86% of the 33 GW capacity added in FY25. The share of clean energy in total installed capacity has risen to 36%, reflecting strong policy support and investor confidence. March 2025 alone saw 5 GW of renewable additions, signaling accelerating momentum. While power generation growth slowed in April, sector stocks remain bullish, trading above historical valuations.

Key Points: Renewables Drive 86% of India's 33 GW Power Capacity Growth in FY25

  • Renewables dominate India’s 33 GW power expansion in FY25
  • Clean energy now holds 36% of total installed capacity
  • March 2025 saw 5 GW renewable-only additions
  • Power sector stocks rise 10-20% amid clean energy push
2 min read

Renewable energy accounts for 86% of new power capacity addition in FY25: Report

India's renewable energy surge continues as 86% of new 33 GW power capacity in FY25 comes from clean sources, reaching 36% share in total capacity.

"India’s installed power capacity reached 475 GW in FY25, with 86% of new additions from renewables – Antique Stock Broking Report"

New Delhi, April 28

Renewable energy is leading India's power sector expansion, with nearly 86 per cent of the 33 gigawatts (GW) power capacity addition in financial year 2024-25 (FY25) has come from renewable sources, according to a report by Antique Stock Broking.

The report highlighted that India's total installed power capacity has now reached 475 GW, with 33 GW added over the past year. A large part of this addition was driven by renewable energy, reflecting the country's continued shift towards clean energy.

It said, "India's installed power capacity reached 475 GW in FY25, with 33 GW added over the past year. Notably, 86 per cent of this capacity addition came from renewable sources".

As a result, the share of renewables in India's total installed capacity has risen to 36 per cent, marking a steady rise from the previous years.

In March 2025 alone, India added 5 GW of new power capacity, all of which has came from renewable sources. This strong addition in a single month shows the growing policy support and increasing investor interest in the renewable energy sector.

The report noted that this trend is a clear sign of the structural shift in India's energy mix, with renewables becoming a central pillar. This momentum is expected to benefit companies across the clean energy value chain.

The report also provided an update on power generation trends. It mentioned that India's power generation growth, which was strong at around 6 to 7 per cent year-on-year (YoY) in February and March 2025, has slowed down to about 2 per cent YoY in April 2025.

However, there were signs of improvement during April, as power generation showed no growth in the first 10 days but picked up in the latter part of the month.

Due to the combination of slower growth and a high base from last year, short-term power prices have declined by 14 per cent YoY so far in April 2025. Despite this, power sector stocks have performed well, gaining between 10 per cent and 20 per cent over the past two to three months.

The report said that average valuations for power stocks are currently around 2.2 times price-to-book value (PBV), which is about one standard deviation above historical averages.

The premium is believed to be supported by expectations of higher capital expenditure and increased project capitalization in the sector.

- ANI

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Reader Comments

P
Priya K.
This is fantastic news! 🌱 India's commitment to renewable energy is really paying off. 86% is an impressive number - shows we're moving in the right direction for a sustainable future.
R
Rahul S.
While the renewable numbers look good, I'm concerned about the 2% YoY power generation growth in April. Are we building capacity but not generating enough? Would love to see more analysis on this.
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Anjali M.
Solar investor here - this report confirms what we've been seeing on the ground. The policy support is real and the sector is booming. Just installed panels on my factory roof last month!
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Sanjay P.
Great progress, but we need to ensure this growth is sustainable. Heard some projects are facing land acquisition issues. Hope the government addresses these bottlenecks.
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Neha T.
5GW in just March! That's incredible momentum. Makes me proud to see India leading the renewable energy transition. When will we hit 50% renewable share in total capacity?
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Vikram J.
The stock performance is interesting - 10-20% gains while power prices are declining. Shows investors are betting big on long-term growth rather than short-term profits.

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