Renewable Energy Capacity Added Consistently In 2024, Says HSBC Global

India has added renewable energy capacity consistently in the calendar year 2024, HSBC Global Research said in a note. Till November, India added 28 gigawatt of renewable capacity, which is 81% year on year rise.

Storage is becoming essential in the renewable energy story, according to HSBC Global Research that added that "some 12GW of such hybrid tenders with storage have been awarded in CY24, of which 4GW has been awarded since November." These tenders entail supplementation of 2–4 hours of storage for peak time availability with plain solar, which will reduce tariff further.

In the solar energy space, the Government of India announced that solar modules which will be used in projects must be sourced from an approved list of models and manufacturers. The second edition of the list will be applicable from April 1, 2026.

ALMM became applicable from April 1, 2024 with an aim to reduce import dependence and build domestic cell supply. At present, 63 gigawatt of module capacity is enlisted, which is all domestic players, HSBC Global Research said.

India's power demand rebounded in November and December 2024, mostly due to low base of last year. It was declining for three consecutive months. India's northern and western regions contributed 79% and 85% of the growth in November and December.

The rebound in power demand is served with no shortage in the system. Shortages remained minimal since October. It declined 57% on the year. The shortage decline is reflected in low Indian Energy Exchange prices as they averaged Rs 3.5 – 3.7 in November and December to date, HSBC Global Research said.

In the financial year 2025, no thermal capacity was added till date as incremental renewable capacity and normal hydro generation is efficiently managing existing thermal plants.

However, HSBC Global Research estimates that 3–5 gigawatt of thermal capacity will come online by financial year 2025.