India’s power industry is seeing major shifts in 2025, shaped by rising renewable energy use, growing infrastructure upgrades, and changing market forces.
As energy needs are expected to increase by 6.0 to 6.5% each year until FY2030, fueled by the rise of electric vehicles and more data centers, market participants are keeping a close watch on this sector.
This article takes a closer look at the developments and patterns that traders are focusing on in India’s power sector throughout 2025.
Key Trends Driving Market Attention to Power Stocks
With major changes underway, here are the key trends traders are closely watching in the power sector this year:
1. Renewable Energy Expansion and Integration
India’s renewable energy sector has seen remarkable momentum. As of May 2025, total installed renewable capacity stood at 232 GW, up sharply from 75.52 GW in 2014. This progress spans multiple sources such as solar, wind, hydro, and bioenergy.
A key contributor is the Gujarat Hybrid Renewable Energy Park in Kutch, which, once operational, aims to deliver 30 GW, sufficient to power 18 million homes.
These initiatives reflect India’s long-term focus on clean energy and its ambition to reach 500 GW of non-fossil fuel capacity by 2030.
2. Energy Storage and Grid Modernization
In 2025, energy storage and grid upgrades are becoming essential to India’s evolving power infrastructure. For example, Tata Power has taken a notable step by implementing a 100 MW Battery Energy Storage System (BESS) in Mumbai.
This initiative aims to improve grid stability and maintain continuous power for critical sectors, including public transport and healthcare. Such forward-looking investments have drawn the attention of market participants, with the Tata Power share price currently hovering around ₹390.
The company’s focus on advanced storage solutions marks a key shift toward long-term sustainability.
3. Infrastructure Development and Transmission Upgrades
In 2025, substantial developments are taking place across key regions. Two new 132kV substations have become operational in Greater Noida, with groundwork initiated for a 220kV substation in Sector 28 to strengthen supply reliability.
In Kanpur, the launch of the 660 MW Panki thermal power extension and three 660 MW units of the Ghatampur thermal power project collectively add 3,081 MW to Uttar Pradesh’s capacity, marking a 24.89% increase.
Meanwhile, Adani Energy Solutions is executing a major transmission project valued at ₹1,660 crore to deliver 1.5 GW of hydro-based green energy from Raigad to Mumbai.
4. Policy Reforms and Investment Outlook
India’s power sector is experiencing transformative policy reforms and substantial investments. The government plans to invest $600 billion over the next decade to expand generation capacity and enhance grid infrastructure.
The National Electricity Plan targets 500 GW of non-fossil fuel capacity by 2030, emphasizing renewable energy sources. On top of that, reforms linking state borrowing to GSDP aim to incentivize improvements in electricity distribution and intra-state transmission.
For traders, utilizing tools like the screener share market can aid in identifying opportunities within this evolving sector.
Conclusion
In 2025, traders are watching India’s power sector closely due to fast growth in renewable energy, better storage systems, and strong government support. With rising demand and new projects, the sector offers big opportunities. Keeping an eye on key companies and market trends can help traders make smart decisions.
However, before investing in power stocks, investors should consider their financial goals and risk tolerance levels. Sectoral investment may carry certain risks thus diversification is very important.
