Emerging demand scenarios could boost India’s annual solar installations from about 50 GW in FY27 to nearly 85 GW by FY30, as per a report by Equirus Securities. The report suggests that data centers, green hydrogen, and night-time connectivity might contribute 15-20 GW of additional solar demand each year starting from FY29.
India’s utility solar sector shows a strong growth trajectory, with 145 GW of signed power purchase agreements (PPAs) and 68 GW of pending awards supporting continuous demand for project execution. The country has established a 2.5-year utility solar pipeline, securing 215 GW of Letters of Award (LOA) during FY18-FY26.
Of the awarded projects, 145 GW PPAs have been signed, and 75 GW have been executed, leaving a remaining pipeline of 70 GW, including 58 GW of solar and 12 GW of wind, with annual utility installations averaging around 21 GW. Approximately 58 GW of unsigned solar PPAs are still pending, with a significant portion falling under plain solar or hybrid projects.
The report highlights that around 15 GW consists of Round-The-Clock (RTC), Firm and Dispatchable Renewable Energy (FDRE), and Solar+BESS (Battery Energy Storage Systems) projects, where signing probability is high. It also notes that the ongoing re-tendering cycle favors domestic integrated Independent Power Producers (IPPs) as DISCOMs shift towards firm power supply.
New tenders are increasingly adopting firm power formats, focusing on Battery Energy Storage Systems (BESS) and FDRE/RTC structures. Integrated IPPs equipped with storage and firm supply capabilities are seen as the key beneficiaries of this trend. The report points out that India has approved over 300 data center projects, with major players like AWS, Microsoft, and Google investing significantly in renewable power solutions.
Each 100 MW data center is estimated to require approximately 250 MW of solar, 150 MW of wind, and nearly 450 MWh of battery energy storage to operate entirely on renewable energy. Moreover, India’s green hydrogen production target of 5 million tonnes annually by 2030 under the National Green Hydrogen Mission is expected to drive the need for about 20 GW of dedicated solar capacity per one million tonne of hydrogen production.
The demand for BESS-based storage in India is projected to increase from 34.7 GWh during 2022-2027 to 236.2 GWh during 2027-2032. This growth is attributed to the integration of renewables, grid stability requirements, policy support through storage mandates, and improving project economics, according to the report.
