ENA Sectors 2026-02-27 17:32:20 <p><span style="font-size:14px"><strong>New Delhi, Feb 27 (KNN)</strong> Indias commercial and industrial (C&amp;I) renewable energy capacity is projected to increase to 57 GW by FY28 from around 40 GW expected by FY26, adding 17 GW in two years, according to Crisil Ratings. </span></p> <p><span style="font-size:14px">The growth is being driven by corporate decarbonisation goals and tariff advantages over grid power.</span></p> <p><span style="font-size:14px">Crisil said expansion will be supported by competitive long-term power purchase agreement (PPA) tariffs, corporate net-zero commitments, renewable purchase obligations (RPOs), attractive developer returns and strong counterparty credit profiles.</span></p> <p><strong><span style="font-size:14px">Policy Push and Cost Advantage</span></strong></p> <p><span style="font-size:14px">The C&amp;I segment, Indias largest electricity-consuming block, has gained momentum following the Green Energy Open Access (GEOA) Rules, 2022, which allow industrial and commercial users to source renewable power through existing transmission networks.</span></p> <p><span style="font-size:14px">Gautam Shahi, Director, Crisil Ratings, said, Following the GEOA rules, major industrial states have announced policies for open access to fast-track renewable adoption and attract investments, said Gautam Shahi, Director, Crisil Ratings. </span></p> <p><span style="font-size:14px">States are offering rebates on cross-subsidy, wheeling and state transmission utility charges if power is sourced intra-state. Such incentives lower the landed cost of power by 25-30 per cent compared with on-grid tariff, driving capacity addition, he added.</span></p> <p><strong><span style="font-size:14px">Strong Credit Profiles, Emerging Risks</span></strong></p> <p><span style="font-size:14px">Private equity-backed developers are expected to drive most new capacity, given higher returns compared with utility-scale projects. Dushyant Chauhan, Associate Director, Crisil Ratings, noted, The credit profile of our C&amp;I portfolio is strong, with attractive tariffs and an average PPA tenure of around 15 years, providing stable revenue visibility.</span></p> <p><span style="font-size:14px">Chauhan further said, About 65 per cent of rated capacity is tied to counterparties with High Safety credit profiles, and weighted average debt service coverage ratio stands at 1.4 times over the next two fiscals.</span></p> <p><span style="font-size:14px">However, limited intra-state transmission capacity, right-of-way challenges and potential policy recalibration remain risks. Open access incentives may affect distribution utilities revenues, and any revision could increase landed costs, though renewable tariffs are expected to remain competitive.</span></p> <p><span style="font-size:14px">With India targeting 500 GW of non-fossil fuel capacity by 2030, the C&amp;I segment is emerging as a key contributor to clean energy goals while offering stable returns to developers and savings to corporates.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 45310 https://knnindia.co.in/news/newsdetails/sectors/commercial-industrial-renewable-capacity-to-reach-57-gw-by-fy28-crisil-ratings 2026-02-27 17:32:20 knnindia.co.in