India’s Energy Demand to Grow 5.5% in FY25, Renewables to Lead
India’s energy demand is projected to grow by 5.5% in FY25, driven by rapid industrial expansion and rising consumption, according to industry forecasts. Renewable energy sources are expected to dominate new capacity additions, reflecting the country’s commitment to clean and sustainable power generation.
Renewables Drive Capacity Expansion
With renewable energy accounting for the majority of upcoming installations, solar and wind projects are poised to lead the growth in India’s energy infrastructure. The report highlights that over 70% of new capacity additions in FY25 will come from renewables, supported by government initiatives and private sector investments.
The push toward green energy is part of India’s broader strategy to achieve its net-zero carbon emissions target by 2070. Policies such as the Production-Linked Incentive (PLI) scheme for solar manufacturing and updated renewable energy targets have been instrumental in attracting investment in this sector.
Surge in Energy Demand
The expected rise in energy demand underscores the need for enhanced grid infrastructure and storage solutions. Sectors like manufacturing, services, and agriculture are anticipated to be the primary contributors to this growth. Urbanization and increased electrification in rural areas will also drive energy consumption upward.
Challenges and Opportunities
Despite the positive outlook, challenges such as the integration of renewable energy into the existing grid and securing investments for large-scale projects remain. Experts have stressed the importance of modernizing transmission networks and implementing advanced storage technologies to ensure a reliable energy supply.
As India positions itself as a global leader in renewable energy, the focus on sustainable growth will be critical in addressing rising demand while minimizing environmental impact. The government’s proactive approach and collaboration with private stakeholders are expected to play a pivotal role in achieving these objectives.
