India's Power Surge: Pioneering the Future of Renewable Energy

Nomura anticipates over 7% CAGR in India's electricity demand from FY24 to FY27, driven by economic growth, electrification, and emerging sectors like data centres, EVs, and green hydrogen. Solar and wind energy will supply 75% of incremental demand by FY25, aligning with India's renewable targets.

India's power sector is on the brink of a transformative surge as Nomura projects a compound annual growth rate (CAGR) exceeding 7% in electricity demand between FY24 and FY27. This anticipated growth is driven by accelerating economic activity, increased electrification, and burgeoning demand from data centres, electric vehicle (EV) charging, and green hydrogen production.

With changing weather patterns contributing to supply deficits, electricity consumption in FY25 alone is expected to rise by 7.2% year-on-year. India's strides in renewable energy adoption continue to impress, with projections that renewables will supply 35% of the country's electricity in FY25.

Solar and wind energy are poised to meet roughly three-quarters of the new power demand by FY25, with solar energy expected to grow by 23% annually. This aligns with India's ambitious targets, pivoting towards 500 GW of renewable energy capacity by 2030, cementing its position as a global leader in green energy initiatives.

(With inputs from agencies.)