According to Nuvama Research, India might add between 45 and 50 gigawatts of renewable energy capacity per year over the next two years because to a sizable pipeline of projects awaiting power purchase agreements (PPAs).
According to the research group, 86 gigawatts of capacity already have PPAs, but 140 gigawatts of renewable power have not yet been converted. Nuvama anticipates an acceleration of renewable energy additions during the next two years based on this pipeline.In its most recent power sector update, Nuvama stated, "We believe annual RE additions of ~45-50GW over the next two years are achievable given ~86GW of existing PPAs, including solar rooftop additions."

According to the study, since FY23, around 2.26 lakh megawatts of renewable capacity have been tendered, with roughly 1.26 lakh megawatts being awarded. However, only over 86,000 megawatts, or 38% of the total capacity that was bid, presently have PPAs; the remaining almost 1.40 lakh megawatts have not yet been turned into PPAs.
Nuvama pointed out that the increase of renewable capacity has already accelerated, with 13.3 GW added so far in FY27. By the end of June 2026, India's installed electricity capacity was approximately 549 GW.

The forecast is given the continued high demand for electricity. In July 2026, the demand for electricity increased by 11.2% year over year to over 171 billion units, with a peak demand of nearly 270 gigawatts, up roughly 22% from 220 gigawatts in July 2025.
The all-India thermal plant load factor increased to 68.2% in July from 62.3% a year earlier as a result of the increased demand, which also increased thermal plant utilization. According to Nuvama, the mix of thermal and renewable generation was approximately 67% and 20%, respectively.

"Overall, the macro demand remains favorable, and we remain directionally positive on generation (Thermal/RE) and transmission sector momentum," the study stated.
The report did, however, highlight execution issues in the transmission sector, with labor shortages still having an impact on EPC companies. In the second half of FY27, it anticipates that these limitations would lessen, possibly enabling more seamless project execution.
Nuvama further pointed out that power costs continued to vary significantly during the day, with non-solar nighttime prices rising to about Rs 7.5 per kWh in July and solar-hour pricing at about Rs 2.8 per kWh.