Demand From Data Centers, AI Will Push India’s Solar Growth Phase
NEW DELHI- Emerging demand from data centers, green hydrogen and round-the-clock renewable power could lift India’s annual solar installations from around 50 GW in FY27 to nearly 85 GW by FY30, according to a report by Equirus Securities.
The report said this emerging demand segments could add 15-20 GW of incremental solar demand annually from FY29.
India has approved more than 300 data center projects, with US technology companies Amazon Web Services, Microsoft and Google each committing investments of Rs 2-3 lakh crore. The report said the rapid growth of artificial intelligence, which requires round-the-clock power, makes Solar+Battery Energy Storage Systems the most cost-effective renewable solution at scale.
India’s utility solar sector has a strong multi-year growth pipeline, supported by 145 GW of signed power purchase agreements (PPAs) and 68 GW of pending awards. The report said India has built a 2.5-year utility solar pipeline, with 215 GW of Letters of Award (LOAs) issued during FY18-FY26. Of this, 145 GW PPAs have been signed and 75 GW executed, leaving a balance pipeline of 70 GW, including 58 GW of solar and 12 GW of wind projects.
Around 58 GW of unsigned solar PPAs remain outstanding. The report said projects involving Round-The-Clock (RTC), Firm and Dispatchable Renewable Energy (FDRE) and Solar+BESS have a higher probability of signing as power distribution companies (DISCOMs) increasingly seek firm renewable power that can supply electricity during both solar and non-solar hours. It added that integrated independent power producers (IPPs) with storage capabilities are well positioned to benefit from this shift.
The report also highlighted India’s target of producing 5 million tons of green hydrogen annually by 2030 under the National Green Hydrogen Mission, estimating that every one million tons of hydrogen production would require about 20 GW of dedicated solar capacity.
India’s BESS-based storage demand is projected to increase from 34.7 GWh during 2022-2027 to 236.2 GWh during 2027-2032, the report said. (IANS)
