Renewable energy to drive global power capacity expansion: Report

A Centrum report states renewable sources like solar and wind will dominate global power capacity expansion. By 2030, renewables may hit 40% of global generation. India's growth is also renewable-led, targeting 500 GW of non-fossil capacity.

Renewable energy sources such as solar and wind are expected to drive the bulk of power capacity expansion in the coming years, according to a report by Centrum Institutional Research. The report noted that the global power sector is witnessing a structural shift toward clean energy, with renewables leading the newest installations.

Global Shift Towards Renewables

"Currently, global installed power capacity stands at 9.7 TW as of Dec. 2025 with non-fossil sources contributing 60% of power capacity and renewables driving bulk of capacity addition," the report said.

According to the report, renewables are expected to dominate new power installations worldwide as countries accelerate their transition to cleaner energy systems. "Renewables (solar, wind and hydro) are driving ~70% of new global capacity additions, with solar expected to add roughly ~500-550 GW annually and wind roughly ~120-160 GW annually depending on policy cycles and supply-chain conditions," the report said.

The report further stated that the share of renewables in global electricity generation is projected to rise significantly over the next few years. "By 2030, renewables are projected to reach roughly ~40% of global electricity generation, compared with around ~32% currently," it said.

Centrum noted that the shift towards renewable energy is being driven by declining costs, supportive policies, and rising electricity demand as economies increasingly electrify transportation, heating, and industrial processes.

India's Renewable Energy Push

Highlighting the Indian power sector, the report said that capacity expansion in the country is also expected to be largely renewable-led over the next decade. "India's power capacity addition is increasingly renewable-led, with solar and wind expected to contribute the majority of incremental capacity through 2030," the report stated.

The report added that India's ambitious clean energy targets will require a rapid build-out of renewable power capacity in the coming years. "The government's target of ~500 GW non-fossil fuel capacity by 2030 implies a massive buildout from current levels, requiring annual additions of ~50 GW," it said.

Solar Power Dominance and Cost Competitiveness

Solar power is expected to remain the dominant technology in India due to its cost competitiveness. "Solar remains the dominant technology due to its cost competitiveness, while wind is gaining traction through hybridisation and improved turbine efficiencies," the report added.

The report also highlighted that the sharp fall in renewable energy costs has made clean power increasingly competitive with conventional sources. "Renewable energy, particularly solar, has become the cheapest source of new power generation in India, with tariffs consistently in the ₹3-3.5/kWh range," it said.

Opportunities in Ancillary Sectors

According to the report, the rapid expansion of renewable capacity will also create opportunities in related sectors such as energy storage, grid infrastructure, and transmission systems, which are essential to support higher penetration of clean energy in the power mix. (ANI)

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