India’s energy sector is projected to see robust growth in renewable energy, smart grids, and electric vehicles by 2025, as the country targets 500 GW of green energy capacity by 2030, according to Capgemini’s latest report on industry trends. The report, titled “2025 Predictions – Energy Transition & Utilities Technology and Industry Trends in India,” highlights key areas where technology and policy shifts are expected to drive India’s energy transition over the next two years.

“Solar and wind energy will continue to be the key pillars of this growth. Technological advancements in solar photovoltaic (PV) cells and wind turbine efficiency will drive cost reductions and increase deployment,” said Bragadesh Damodaran, Vice President and Industry Platform Leader for Energy Transition & Utilities at Capgemini India.

As renewable energy generation increases, the report states that large-scale Battery Energy Storage Systems (BESS) will play a critical role in balancing supply and demand. Anticipated cost reductions in lithium-ion and alternative batteries are expected to make storage more viable. India will also focus on domestic battery manufacturing to reduce import dependence and support the growing electric vehicle (EV) sector.

Digital transformation in India’s grid is also anticipated, with the integration of advanced metering infrastructure (AMI), artificial intelligence (AI), and machine learning (ML) for real-time monitoring and predictive maintenance. “The Indian power grid will see increased integration of digital technologies such as AMI, AI, and ML for predictive maintenance and real-time monitoring,” the report states, noting that stronger cybersecurity measures will be necessary to protect infrastructure.

The report further outlines India’s potential leadership in green hydrogen production, with pilot projects expected by 2025, targeting hard-to-abate industries such as steel, cement, and heavy transport. Damodaran noted that “India is positioning itself to be a leader in green hydrogen production,” adding that domestic electrolyser manufacturing will help reduce production costs.

A significant rise in EV adoption is also predicted, particularly in the two- and three-wheeler segments, driven by government incentives, expanded charging networks, and lower battery prices. Vehicle-to-Grid (V2G) technology, which allows EVs to return power to the grid, is expected to support grid stability and decentralized storage.

The report points to the growth of decentralized energy systems, especially in rural and off-grid areas, with microgrids and blockchain-enabled peer-to-peer trading platforms allowing consumers to sell excess electricity to the grid or directly to others.

While challenges remain in financing, grid modernization, and ensuring energy access, the report underscores India’s commitment to sustainable energy, aligning with its goals to reduce fossil fuel dependency and meet rising energy demands.

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