Epic Energy Ltd Management Discussions

Power Sector in India Energy Overview Total Installed Capacity (as on 30.06.2025)1

Sector	MW	% of Total
State Sector	111077.18	22.91 %
Central Sector	108532.93	22.39 %
Private Sector	265208.72	54.70 %
Total	484818.82	100%

(Source: Central Electricity Authority CEA)

Installed Generation Capacity Category Wise (as on 31.05.2025)2

Category	Installed Generation Capacity (MW) Fossil Fuel	% of Share in Total
Total Fossil Fuel	240060	50.5 %
Coal	212718	44.7 %
Lignite	6620	1.4 %
Gas	20132	4.2 %
Diesel	589	0.1 %

 

	Non Fossil Fuel
RES (Inclu.Hydro)	226751	47.7 %
Hydro	47928	10.1 %
Wind Solar and other RE	178823	37.6 %
Wind	51292	10.8 %
Solar	110834	23.3 %
BM Power/Cogen	10743	2.3 %
Waste to Energy	851	0.2 %
Small Hydro Power	5102	1.2%
Nuclear	8780	1.8 %
Total Non-Fossil Fuel	235531	49.5 %
Total Installed Capacity	475590	100%
(Fossil Fuel and Non-Fossil fuel)

Indias overall installed power generation capacity significantly rose, reaching approximately 476 GW by mid-2025, a jump of about 56% from the 305 GW in 2015 16. This substantial growth was driven by strong demand, government policies, and increasing investment in both traditional and renewable energy. Notably, the non-fossil fuel capacity has also seen remarkable growth, becoming a key component of this expansion

Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate power infrastructure is essential for sustained growth of the Indian economy. This document details the performance and key developments in Indias power sector during the first quarter (January March) of 2025. India added a total power generating capacity of 13,495 megawatts (MW)4 in 1Q 2025. Renewables accounted for 78.9% of all new capacity additions. With gas capacity retirement of 285MW, the net capacity added was 13,210MW. With these additions, Indias total cumulative power generation capacity reached 475.2 gigawatts (GW) as of March 31, 2025.

Solar, coal, and wind power were the main contributors to this growth, accounting for 57.7%, 21.1% and 13.9%, respectively, of the total capacity added, reflecting the continuing emphasis on clean energy along with targeted thermal capacity additions to meet rising electricity demand.

Key Capacity Achievements in 1Q 2025

? Solar power capacity surpassed 100 GW in January 2025; total capacity stood at 105,646 MW by the end of March (an increase of 7,782 MW during the quarter). Solar installed capacity grew at a remarkable rate over a decade, from 2.82GW in 2014 to 100GW in 2025.

? Wind power capacity crossed the 50 GW mark, reaching 50,038 MW (an increase of 1,875 MW).

? Total non-fossil fuel power capacity reached 228GW in 1Q 2025, including contributions from hydro, biomass, waste-to-energy, and nuclear power.

? Hydro capacity increased by 760 MW in Q1, with new stations commissioned in Himachal Pradesh and Kerala.

? Waste-to-Energy capacity rose by 220 MW in the same period, and biomass-based capacity increased by 15 MW.

? Coal capacity recorded a net increase of 2,843 MW during Q1, driven by project completions across multiple states, although coals share in total installed capacity continued to decline to 46.7%.

State-wise Renewable Capacity Additions

? Rajasthan: 1,973 MW

? Gujarat: 1,910 MW

? Maharashtra: 1,780 MW

? Karnataka: 1,316 MW

? Andhra Pradesh: 940 MW

Renewable Energy Investments

Investments in Indias Renewable Energy Sector5 (US$ million)

Investments in Indias renewable energy sector reached record levels in 1Q 2025, driven by large-scale acquisitions and substantial debt financing deals.

Key Investment Trends

? Total investment reached US$9.84 billion in 1Q 2025, a 7.7-fold increase compared to US$1.279 billion in 1Q 2024.

? Compared to the previous quarter (4Q 2024), investments increased by 2.6 times.

? This was the highest quarterly investment in Indias renewable sector in the last three years.

Foreign Trend and Prices of Energy Resources6

Year-wise Foreign Trade in Coal, Crude Oil, Petroleum Products(total), Natural Gas and Electricity (million tonnes)

Renewable Energy Status in India

Indias renewable energy sector has seen substantial growth in recent years, with a total installed capacity of 226.79 GW by June 2025. This includes 105,646 MW of solar and 50,038 MW of wind power, (source: PIB). India ranks 4th globally in renewable energy installed capacity, 4th in wind power, and 3rd in solar power. The country is also making significant strides in expanding its manufacturing capacity for wind turbines and components.

Physical Achievements in Renewable Energy in India7

Sector	FY 2025-26 Achievements	Cumulative Achievements (as on 31.7.2025)
Installed RE Capacity (Capacities in MW)
Solar Power*	13369.58	119016.54
Wind Power	2102.28	52140.10
Biomass (Bagasse) cogeneration	0.00	9821.32
Biomass(non- bagasse)Cogeneration	0.00	921.79
Waste to Energy	0.00	309.34
Waste to Energy (off- grid)	14.24	545.11
Small Hydro Power	8.16	5108.71
Sub Total (Exe. Hydro)	15494.26	187862.91
Large Hydro Power	1900.00	49628.17
Total RE	17394.26	237491.08

*Solar Power (Cumulative) : 119.02 GW

Ground Mounted Solar Plant : 90.99 GW

? Grid Connected Solar Rooftop: 19.88 GW

? Hybrid Projects (Solar Component) : 3.06 GW

? Off-Grid Solar: 5.09 GW

Renewable Energy Trends in India

In recent years, renewable energy has gained significant momentum, driven by the rising consciousness to reduce carbon emissions. By 2025, the renewable energy landscape is expected to evolve further, with new trends emerging in renewable energy sources, technologies, and market dynamics. India alone, is projected to see robust growth in renewable energy, smart grids, and electric vehicles by 2025.

Indias energy demand is expected to increase more than that of any other country in the coming decades due to its size and enormous potential for development. The GOI aims to achieve net zero carbon emissions by 2070. To that effect, we must meet our bubbling energy demands by low-carbon resources. As of 2023, India ranked fourth in both wind and solar power capacity, and in total renewable energy capacity. The countrys renewable energy capacity has been growing quickly, with an annual growth rate of 15.4% from 2016 to 2023. By the end of FY23, India had 125.15 GW of renewable energy capacity. It is the fastest-growing market for renewable electricity, and by 2026, its expected that the country will add even more capacity, possibly doubling its current figures.

With strong government support and improved economics, the renewable energy sector has become an appealing area for investors. As Indias energy demand is projected to reach 15,820 TWh8 by 2040, renewable energy will be key to meeting this growing need.

Renewable energy and its global impetus

The renewable energy sector has undergone significant transformations in recent years, primarily influenced by technological innovations, government incentives, and a growing global commitment to combat climate change. One of the most notable clean energy trends is the increasing efficiency of renewable energy technologies. Solar and wind energy have witnessed remarkable improvements in energy generation efficiency, making them more competitive with traditional fossil fuels.

Another significant trend is the rise of decentralized energy systems, where energy generation and storage are localized. This shift allows for greater energy resilience and autonomy, especially in remote or off-grid areas. Solar panels, small-scale wind turbines, and home batteries are becoming more accessible to residences and offices, thus reducing dependence on centralized power grids.

The renewable energy industry is also embracing digital transformation, with advanced data analytics and artificial intelligence (AI) playing crucial roles in optimizing energy production and distribution. Smart grids, which enable real-time energy monitoring and dynamic adjustments, are being integrated into energy systems, resulting in better load management and enhanced grid stability.

In addition, energy storage technologies have made considerable advancements. Batteries, particularly lithium-ion batteries, are now more affordable and efficient, enabling the storage of excess energy generated during peak production times for later use. This addresses one of the key challenges of renewable energy: intermittency.

The tide of renewable energy trends in India

India is poised to play a central role in the global transition to renewable energy. The countrys vast geographical diversity and abundant natural resources offer immense potential for renewable energy generation. In recent years, India has made significant strides in expanding its renewable energy capacity, particularly in solar and wind energy.

One of the most notable recent trends in renewable energy in India is the countrys ambitious commitment to achieve 500 GW of non-fossil fuel capacity by 2030. To meet this target, India is focusing on scaling up solar power installations, wind energy projects, and green hydrogen production. The governments incentives, such as tax rebates and subsidies for renewable energy projects, are helping to drive investments in the sector.

Indias total electricity generation capacity has reached 452.69 GW, with renewable energy making up a significant part of the mix. By October 2024, renewable energy capacity stood at 203.18 GW, which is over 46.3% of the countrys total capacity. This shows a major shift in Indias energy use, as the country increasingly depends on cleaner, non-fossil fuel sources.

Several renewable resources contribute to this growth. Solar power leads with 92.12 GW, making the most of Indias abundant sunlight. Wind power follows with 47.72 GW, thanks to the countrys large wind corridors. Hydroelectric power is another important source, with large hydro projects contributing 46.93 GW and small hydro adding 5.07

GW, harnessing energy from Indias rivers.

Additionally, India has seen a surge in rooftop solar installations, particularly in urban areas. With the decreasing cost of solar panels and the availability of financing options, residential and commercial buildings are increasingly adopting solar energy as a sustainable solution to meet their electricity needs.

Biopower, which includes biomass and biogas, adds another 11.32 GW, using agricultural waste and other organic materials for power generation. These renewable energy sources are helping India reduce its reliance on fossil fuels, moving toward a more sustainable energy future. The countrys growing renewable energy market has attracted international investors, and Indias renewable energy sector is now one of the most attractive in the world. As of 2023, India has become the worlds third-largest solar market and continues to be a leader in the deployment of large-scale solar and wind projects.

Clean energy trends in 2025

As we look ahead to 2025, several clean energy trends are expected to shape the future of the renewable energy industry. One of the most significant trends is the continued decrease in the cost of renewable energy production. 1. Solar and wind energy, which have already become more affordable in recent years, are expected to become even cheaper, making them more accessible to both developed and developing nations. 2. Another clean energy trend that is likely to dominate in 2025 is the widespread adoption of hydrogen as a clean fuel. Hydrogen, produced through renewable energy sources like wind or solar power, is seen as a promising solution for decarbonizing industries that are hard to electrify, such as heavy transportation, steel manufacturing, and chemical production. The development of hydrogen infrastructure and technologies will be crucial to realizing its potential as a mainstream energy source.

3. Electric vehicles (EVs) will continue to grow in popularity, driving demand for renewable energy to charge the increasing number of EVs on the road. The integration of renewable energy sources with EV charging infrastructure will be a key component of reducing emissions from the transportation sector 4. As renewable energy production, such as solar and wind, relies on intermittent sources, energy storage technologies will continue to evolve. By 2025, we will see more efficient and affordable energy storage solutions, particularly large-scale batteries, which will be critical to balancing supply and demand and ensuring grid stability in renewable-powered systems 5. The interplay of solar power and electric vehicles (EVs) is expected to grow significantly in the next few years. By 2025, well see a surge in solar-powered EV charging stations, allowing drivers to charge their vehicles using clean, renewable energy In addition, as nations ramp up their commitment to achieving net-zero emissions by mid-century, the role of renewable energy will become even more prominent in national energy mixes. The integration of renewable energy into industries like agriculture, manufacturing, and construction will further contribute to the global transition to clean energy.

Future Trends in Renewable Energy in India

Looking towards 2025 and beyond, renewable energy trends in India are expected to continue on a positive trajectory.

One key trend is the increased integration of renewable energy with electric mobility. With the governments push for electric vehicles, India is investing in the development of renewable-powered EV charging infrastructure. This will not only reduce emissions from transportation but also provide a clean, sustainable energy source for the countrys growing fleet of electric vehicles. Another future trend is the development of energy storage systems to complement Indias renewable energy initiatives. As the countrys reliance on solar and wind power increases, efficient energy storage solutions will be crucial to balancing supply and demand, especially during periods of low generation. By 2025, India is expected to have made significant progress in large-scale battery storage projects, helping to stabilize the grid and reduce energy waste. India is also exploring the potential of green hydrogen as a key energy source. As part of its broader commitment to decarbonize its economy, India is investing in the production of green hydrogen using renewable energy, which could revolutionize sectors like heavy industry and transportation.

Solar Energy Status in India

In 2025, India ranks as the third-largest producer of solar power globally. This places India behind China and the United States in terms of solar energy generation. Indias rapid growth in solar energy capacity has been driven by government initiatives and investments in solar power plants, including large-scale solar parks.

India is steadily moving towards renewable energy while maintaining its focus on national energy goals and international climate commitments. As of March 2025, coal remains the largest source of electricity in the country, contributing 45.28% of the total installed power capacity. However, renewable energy sources, especially solar and wind, are growing at a fast pace, showing Indias commitment to cleaner and more sustainable energy solutions. By the end of March 2025, renewable energy accounted for

36.27% of Indias total installed power capacity. Solar power was a major driver of this growth. India crossed 105.646

GW9 in solar photovoltaic capacity by March 2025. The total renewable energy capacity, excluding large hydroelectric projects, reached 172.368 GW. Solar energy made up 61.29% of this renewable capacity and accounted for 22.23% of Indias overall installed power capacity. This marked a 29.13% increase compared to the previous year, reflecting the rapid growth in solar installations. In 2024 alone, India added over 24.5 GW of new solar capacity. In the first three months of 2025, India installed 7,781.77 MW of solar capacity. Government programs such as the Approved List of Models and Manufacturers for Solar Modules and Cells are promoting the use of high-quality products and encouraging domestic manufacturing.

Factors behind growth of Solar Energy in India

Geographical Advantage: India receives abundant solar radiation, with ~300 sunny days per year and an average of

4-7 kWh/m?/day, making most regions ideal for solar power generation.

? Government Schemes: o Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme targeting 30.8 GW10 solar power in agricultural sector. o PM Surya Ghar: Muft Bijli Yojana enabling nearly 10.09 lakh rooftop solar installations (March 2025), establishment of National Institute of Solar Energy etc. The country added 1.2 GW of rooftop solar capacity in

Q1 2025, with Gujarat, Maharashtra, and Uttar Pradesh leading installations.

? Financial support and encouraging investment: India has allowed 100% of foreign direct investment (FDI) through the automated process.

o Further, Interstate transmission system (ISTS) fees are waived for solar and wind energy sales across states for projects that are scheduled to be put into service by June 30, 2025.

? Boost RE consumption: Renewable Purchase Obligation (RPO) trajectory has been announced till 2029-30 including separate RPO for Decentralized Renewable Energy.

? Indigenous manufacturing of solar components: Through initiatives like Solar Park Scheme, Production Linked Incentive (PLI) Scheme under National Programme on High Efficiency Solar PV Modules, etc.

? Consumer awareness: Bureau of Energy Efficiency (BEE) launched Standards and Labelling (S&L) programs for both grid-connected solar inverters and solar photovoltaic (PV) modules in March 2024, aiming to help consumers make informed choices and improve energy efficiency.

? Building infrastructure: Under the Green Energy Corridor Scheme, the government is laying new transmission lines and creating new sub-station capacity for evacuation of renewable power.

? International Cooperation and Leadership: Initiatives like International Solar alliance, put India at the forefront of investing in clean energy technologies, by increasing energy access, guaranteeing energy security, and accelerating the energy transition among its member nations. o Further, Indo-German Solar Energy Partnership (IGSP) is developing market forces while introducing enabling mechanisms and facilitating investments in rooftop PV systems.

Wind Energy Status in India

As of early to mid-2025, Indias wind energy capacity exceeded 51 GW, solidifying its position as the fourth-largest wind power market globally, driven by supportive government policies and a robust manufacturing base. Gujarat, Tamil Nadu, and Karnataka lead in installed capacity, while challenges remain in meeting the ambitious 2030 target of 140 GW, necessitating further infrastructure development, and exploring offshore wind energy.

As the world marked World Wind Day 2025 on June 15, India has crossed a significant milestone, with wind power capacity surpassing 51 gigawatts (GW)11 as of May, consolidating its position as the fourth-largest wind energy market globally.

Gujarat has emerged as the national frontrunner, with installed capacity rising to 12,677 MW by March 2025 from 11,722 megawatts (MW) in March 2024 an annual growth of 8.14 per cent. Tamil Nadu, long seen as Indias wind energy pioneer, maintained its second-place status, registering a steady 10.71 per cent growth to 11,739 MW from 10,603 MW.

Karnataka, however, stood out as the fastest-growing state, recording a striking 22.13 per cent increase to 7,351

MW from 6,019 MW, underscoring its rise as a key player in Indias wind sector.

Despite these gains, Indias wind energy ambitions face mounting challenges that could derail its target of 140 GW by 2030. Reaching that goal would require nearly 100 GW of new installations over the next five years. This is a formidable task, given persistent structural and systemic hurdles. Indias wind turbine manufacturing sector is marked by a striking paradox: While domestic capacity stands at a robust 18 GW annually across 14 original equipment manufacturers (OEM), only 4.15 GW was installed in 2024-25, less than a quarter of available capacity.

The Union Ministry of New and Renewable Energys (MNRE) Revised List of Models and Manufacturers (RLMM), updated in May 2025, includes 33 approved turbine models. Indian firms account for 14 of these, led by Suzlon and Pioneer Wincon, while international players such as Siemens Gamesa, Senvion and Vestas dominate with 19 models.

LED Market in India

The India LED market is experiencing robust growth in 2025, with some reports valuing it at over $4.9 billion and projecting a significant increase by 2030. This expansion is driven by decreasing manufacturing costs, government energy-efficiency initiatives like the Smart Cities Mission, and the increasing demand for smart, connected (IoT) lighting systems. The residential sector currently dominates, fuelled by government programs and consumer preference for cost savings, but industrial and agricultural segments are also showing strong growth.

The light emitting diode (LED) lighting market in India size is forecast to increase by USD 2.93 billion at a CAGR of 11.4% between 2024 and 202912. The LED lighting market is experiencing significant growth due to several key factors.

One major trend is the declining manufacturing costs of LED lights, making them increasingly affordable for both residential and commercial applications. Another driving force is government initiatives aimed at promoting energy efficiency and reducing carbon emissions, which has led to a growth in demand for LED lights. Wi-Fi and IoT integration enable smart lighting systems, allowing for wireless communication and the implementation of occupancy sensors.

Indias Energy Landscape

India has made significant progress in strengthening its energy sector in recent years. The country is successfully balancing the twin goals of meeting rising electricity demand and promoting sustainability. According to the International Energy Agency (IEA), 85% of the increase in global electricity demand over the next three years will come from emerging and developing economies. As one of the fastest-growing major economies, India plays a central role in the global energy transition. Its energy demand is expected to grow at the fastest rate among major economies, driven by sustained economic growth. Consequently, Indias share in global primary energy consumption is projected to double by 2035.

Over the past decade, Indias power sector has seen robust expansion driven by rising demand, infrastructure development, and strong policy support for both conventional and renewable energy sources. Electricity generation has increased from 1,168 billion units (BU) in 2015 16 to an estimated 1,824 BU in 2024 25. Similarly, total installed capacity has grown from 305 gigawatts (GW) in 2015 16 to a projected 475 GW in 2024 25.

Solar capacity has increased more than 39 times, from 2.82 GW in 2014 to 110.9 GW in 2025, including a record 23.83 GW added in 2024 25 alone.

Manufacturing Boost (2014 to March 2025)13:

o Solar PV module capacity surged from 2.3 GW to 88 GW, a 38-fold increase. o Solar PV cell capacity grew from 1.2 GW to 25 GW, a 21-fold increase.

Indias Growing Power Sector in 2025

Indias power sector, the sixth-largest globally, is continuously evolving to meet the pace of accelerated manufacturing, rapid urbanization, and expanding agricultural activities. Rising domestic energy demand has driven notable advancements in power generation, transmission, and distribution, with a dynamic shift towards renewable energy sources such as solar and wind.

Power capacity expansion

Coal-based power remains critical for Indias energy security, increasing from 211.86 GW in 2022-23 to 220.49 GW in 2024-25. Renewable energy sources, particularly solar power, have witnessed the most rapid expansion, growing from 66.78 GW in 2022-23 to 100.33 GW14 in 2024-25. Wind energy has seen moderate growth, contributing 10.37 percent to total capacity, while hydropower has remained relatively stable at 46.97 GW.

12https://www.technavio.com/report/led-lighting-market-industry-analysis

13 https://www.pib.gov.in/PressNoteDetails.aspx?id=154717&NoteId=154717&ModuleId=3

14 https://www.india-briefing.com/news/indias-power-sector-in-2025-investor-outlook-36367.html/

Power Source	2022-23	2023-24	2024-25
Coal	211.86	217.59	220.49
Hydro Power	46.85	46.93	46.97
Nuclear	6.78	8.18	8.18
Oil and Gas	25.41	25.63	25.41
Small Hydro	4.94	5	5.1
Solar Energy	66.78	81.81	100.33
Wind	46.85	45.89	48.37
Bio Power	10.8	10.94	11.41
NITI Aayog. Unit: GW)

(Source: India Energy, NITI Aayog. Unit: GW)