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

New Delhi [India], 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.

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