India's power demand is projected to grow at around 6% annually over the next four to five years, supported by continued renewable energy capacity additions of 45-50 GW each year, according to a Centrum Institutional Research Q1FY27 power sector results preview report.
Renewable Energy Companies Expected to Post Healthy Q1 Performance
Against this favorable demand backdrop, the report expects renewable energy companies to post healthy June-quarter performance despite the first quarter typically being a seasonally weak period for renewable energy equipment manufacturers. It added that independent power producers (IPPs) are likely to sustain the growth trend seen over the past few quarters.
According to the report, India added 6.8 GW of solar capacity and 712 MW of wind capacity during the first two months of FY27, keeping the country on track to achieve 45-50 GW of renewable energy capacity additions in FY27.
Solar Manufacturers Benefit from Strong Domestic Demand
The brokerage said solar manufacturers continue to benefit from strong domestic demand and import substitution opportunities, while renewable IPPs are expanding their operational portfolios through faster project commissioning and increasing participation in hybrid renewable, Firm and Dispatchable Renewable Energy (FDRE), and energy storage projects.
The report stated, "Industry growth remains underpinned by India's target of achieving approx. 500 GW of non-fossil fuel capacity by 2030, rising power demand, favourable regulatory support, and increasing adoption of BESS solutions."
Peak Power Demand Hits 271 GW in May 2026
The report also highlighted the continued rise in electricity consumption, noting that "Power demand continues to see strong growth as India achieved peak power demand of 271 GW in May 2026 vs 242 GW for FY26."
Looking ahead, the brokerage maintained a positive outlook on the sector, citing "capacity expansion, backward integration and growing project pipelines."
Corporate Decarbonisation Commitments to Accelerate Investment
It added that "Rising corporate decarbonisation commitments, growing demand for RTC renewable power and rapid deployment of battery energy storage systems are further expected to accelerate investment and capacity addition momentum over the medium term."
