India’s installed power generation capacity is projected to surpass 2,000 GW by 2047, with solar energy alone expected to cross 1,100 GW, according to a new outlook report released by the Energy & Climate Initiatives Society (ENCIS) during the inaugural session of Bharat Electricity, POWERGEN India and Indian Utility Week 2026 at Yashobhoomi in New Delhi.
The report, titled India’s Power & Energy Transformation Outlook, outlines a roadmap for India’s transition toward a cleaner, digitally enabled and more resilient electricity system as the country pursues its Viksit Bharat vision.
India’s installed electricity capacity is expected to nearly quadruple from current levels of around 540 GW to more than 2,000 GW by 2047. Solar power is projected to witness the most dramatic expansion, increasing from 119 GW today to over 1,100 GW, making it the dominant source of new capacity additions over the coming two decades.
The report notes that non-fossil energy sources already account for 53% of India’s installed capacity, achieving a national milestone five years ahead of schedule.
However, the scale of expansion will require unprecedented investments in transmission infrastructure, energy storage, manufacturing and workforce development.
India’s electricity demand continues to accelerate as economic growth drives new sources of consumption, including data centres, electric mobility and green hydrogen production.
The report projects that peak electricity demand will reach 366 GW by 2032, representing a 34% increase from current levels.
Speaking at the inaugural session, Bhupinder Singh Bhalla, former Secretary of the Ministry of New and Renewable Energy and Honorary Chairperson of the event’s Governing Council, said the next phase of India’s energy transition will depend on building a more resilient power system rather than merely adding generation capacity. “India’s energy transition is now about orchestration, not just expansion. Our next phase will be judged not by the number of gigawatts added, but by whether we build a system that is reliable every hour, affordable for every consumer, flexible under stress and secure against disruption,” he said.
One of the report’s strongest warnings concerns the need for rapid expansion of energy storage.
India will need to increase grid-scale storage capacity forty-fold to around 200 GWh by 2030, enabling renewable energy to be integrated while maintaining grid stability.
Ghanshyam Prasad, Chairperson of the Central Electricity Authority (CEA), said India is entering a new phase where grid flexibility is becoming as important as capacity expansion. “India is experiencing phenomenal growth in the power sector, with record annual capacity additions and a rapid shift toward clean energy. But it’s not just about adding megawatts; our real challenge now is to build a grid and market architecture that can integrate renewables, storage and new technologies at scale,” he said.
The report also states that India must nearly triple renewable deployment to achieve its target of 500 GW of non-fossil capacity by 2030.
Digitalisation of the power sector features prominently in the outlook.
According to ENCIS, the nationwide rollout of 250 million smart meters by FY2028 could enable real-time management of nearly 90% of consumer demand, while helping reduce average Aggregate Technical and Commercial (AT&C) losses below 10% for the first time.
Although AT&C losses have already fallen to around 15%, distribution remains one of the sector’s biggest challenges.
The report points out that approximately 44 GW of renewable energy projects remain stalled due to contractual and financing hurdles.
Despite the rapid expansion of renewables, coal is expected to continue supporting grid stability during the transition.
The report says thermal power plants will need to operate more flexibly by 2030, maintaining 40% minimum technical load while achieving 3% ramp rates to complement intermittent renewable generation.
India’s power sector will require approximately $500 billion in investment by 2030, according to the report.
In addition, more than one million skilled workers will be needed to support clean energy deployment, digital infrastructure, grid upgrades and emerging technologies.
Ashish Sood, Delhi’s Minister for Home, Power, Urban Development and Education, said technology and better management have transformed the capital’s power system and should serve as a model for future urban energy planning. “Delhi’s experience shows that better management, technology, and investment can fundamentally transform the performance of an urban power system. Our grid must always stay ahead of the city’s demand,” he said.
Shailesh Kumar, Bihar’s Energy Minister, invited domestic and international investors to participate in the state’s clean energy ambitions. “As India’s energy landscape evolves, Bihar is ready to partner with industry and international investors, offering land, infrastructure, and policy support to help shape the next chapter of India’s clean energy growth,” he said.
