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MANAGEMENT DISCUSSION & ANALYSIS
India power – total installed generation capacity
Coal 46.68% Oil & Gas 5.29%
Solar 22.23% Bio-Power 2.44%
Wind 10.53% Nuclear 1.72%
Hydro 10.04% Small Hydro 1.07%
India's power sector is
entering a transformative
phase, with a massive
investment opportunity of
` 42 Lakh Crores over the
next decade. This investment
is driven by the need to
upgrade aging power
infrastructure, meet growing
energy demand, and achieve
the country’s ambitious
renewable energy goals.
(As on March 31, 2025)
Source: https://iced.niti.gov.in/energy/electricity/generation
Trend in power sources – installed capacity (GW)
Particulars FY
2015-16
FY
2016-17
FY
2017-18
FY
2018-19
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
FY
2023-24
FY
2024-25
Total 305 327 344 356 370 382 400 416 442 475
Net capacity addition 30.26 21.68 17.17 12.10 14.01 12.04 17.34 16.57 25.92 33.24
Source: https://iced.niti.gov.in/energy/electricity/generation
Source-wise capacity addition (As on March 31, 2025)
Source Capacity in
GW
Generation
in BU
Plant Load
Factor (%)
Coal 221.81 1,331.92 68.55
Oil & Gas 25.12 31.91 14.50
Nuclear 8.18 56.66 79.07
Hydro 47.73 148.50 35.52
Wind 50.04 82.86 18.90
Solar 105.65 142.60 15.41
Bio-Power 11.58 14.81 14.59
Small Hydro 5.10 11.33 25.37
Total 475 1,821 NA
Source: https://iced.niti.gov.in/energy/electricity/
generation
Opportunities and threats
Power sector: In a transformative phase
India's power sector is entering a transformative phase,
with a massive investment opportunity of ` 42 Lakh
Cores over the next decade. This investment is driven
by the need to upgrade aging power infrastructure,
meet growing energy demand, and achieve the
country’s ambitious renewable energy goals, including
500 GW of renewable capacity by 2030.
Around 85% of this capex directed towards power
generation, which will play a pivotal role in India's
energy transition. Power demand in India is projected
to accelerate at a 6%+ CAGR, up from the previous
estimate of 5%, fueled by new demand drivers such
as electric vehicles, data centers, and increased
electrification across industries. This surge in demand
highlights the critical need for expanded generation
capacity, especially with the country moving from a
surplus phase to a potential supply gap.
Over the next five years ending in FY 2029-30, India
aims to add 250 GW of new power generation capacity,
with a focus on renewable energy, battery storage,
and other supporting infrastructure. This represents a
three-fold increase compared to the previous five years
ending in FY 2024-25. Moreover, India’s infrastructure
development is set for substantial growth, with
investments planned in roads, airports, and logistics,
further strengthening the demand for energy.
India’s energy targets
India’s energy targets remain intact as the country
marches towards its Net Zero goal, and energy
investment gains momentum across verticals.
• The renewable generation sector in India is set
to attract close to ` 18.80 Lakh Crores between
FY 2024-25 and FY 2029-30.
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