India Poised to Add Nearly 50 GW of New Power Capacity in FY26 Amid Renewable Energy Expansion

India is expected to witness a significant surge in power generation capacity during the financial year 2025–26, with nearly 50 gigawatts (GW) of new capacity projected to be added. A large share of this expansion will come from renewable energy sources such as solar and wind, reflecting the country’s accelerating transition toward cleaner and more sustainable power generation.

The projected capacity addition is driven mainly by large-scale solar installations, which are anticipated to contribute the majority of the new power supply. Wind energy is also expected to play an important role, along with smaller contributions from other renewable technologies. This expansion highlights India’s continued push to strengthen its green energy infrastructure and reduce reliance on fossil fuels.

The growth in renewable capacity aligns with the country’s broader climate and energy transition goals, including increasing the share of clean energy in the national power mix. India has been steadily expanding its renewable energy sector through competitive auctions, infrastructure development, and policy support aimed at accelerating the deployment of green power projects.

Industry experts note that the strong pipeline of renewable energy projects, along with improvements in grid infrastructure and storage solutions, is helping sustain the pace of capacity addition. The rising demand for electricity, combined with the country’s commitment to long-term sustainability targets, is expected to further drive investments in renewable power.

As India continues to scale up clean energy deployment, the anticipated addition of nearly 50 GW in FY26 marks another important milestone in the country’s efforts to build a more resilient and environmentally sustainable power sector.

50 GW of new power capacity in a single year - most of it clean - is real acceleration, and it shifts what corporates should plan for as PPA availability rises across geographies. Our energy-transition and responsible-investment teams help clients evaluate what this deployment pace means for pipeline sequencing and Scope 2 optionality.