India needs to add 32 GW of solar capacity per year to meet the targeted share in its revised optimal energy mix for FY 2029-30, according to a new report by SBICAPS.

The revised optimal energy mix, laid out by the Central Electricity Authority, says India’s total installed power generation capacity will increase to 777 GW by fiscal 2029-30, with solar accounting for 293 GW.

The report said that India’s installed solar PV capacity had reached 68 GW as of May 31, 2023, with around 12.8 GW added in FY 2022-23.

“The National Electricity Plan (NEP) envisions energy demand in India to grow annually at 7% from FY 2021-22 to FY 2026-27,” said the report. “To meet this in a clean way, the revised version of the optimal energy mix posits an increased role for solar energy … We estimate that the pace of solar addition shall have to nearly double to over 30 GW/year to meet this target … this means adding way more than 93 GW which were bid out till FY 2021-22. As of now, 130 GW to 140 GW are planned to be added during the period FY 2023-24 to FY 2027-28.”