India's Thermal Power Share to Dip Below 70% by FY27: Crisil Ratings

• Crisil Ratings projects thermal power's share in India's electricity generation to fall below 70% by FY27, a first for the country.
• The decline is attributed to slower demand growth and a significant increase in renewable energy capacity.
• Despite the falling share, thermal power remains vital due to the intermittent nature of renewables and limited energy storage solutions.
• Distribution utilities are increasingly signing long-term thermal Power Purchase Agreements (PPAs) to ensure round-the-clock supply, improving revenue visibility for independent power producers.
• Renewable energy generation is expected to grow by 18-20% annually, adding 75-85 GW capacity, and meeting most of India's incremental power demand.

Why It Matters: India's thermal power share will drop below 70% by FY27, driven by renewables growth and moderating demand.