Nomura has forecasted a strong growth trajectory for India's power sector, expecting a compound annual growth rate (CAGR) of over 7% in electricity demand from FY24 to FY27. This growth is attributed to accelerating economic activity, increasing electrification, and emerging demand from sectors such as data centers, electric vehicles (EVs), and green hydrogen production. Furthermore, shifting weather patterns leading to supply deficits are also contributing to the surge in power demand. India has made significant progress in adopting renewable energy sources, with renewables projected to supply 35% of the country's electricity by FY25, up from 33.5% in FY24. Solar and wind energy are anticipated to meet a significant portion of the incremental power demand by FY25, aligning with India's ambitious target of achieving 500 GW of renewable energy capacity by 2030. The report highlights three key themes that will influence India's power demand in the near future: data centers, EVs, and green hydrogen. Data centers are expanding rapidly due to the growth in digital activities and technological advancements. India's data center capacity is expected to increase significantly by FY30, driving higher power consumption in the sector. Green hydrogen production is identified as a major growth driver, with expectations of contributing significantly to additional power demand in support of decarbonization. To meet the escalating power demand and facilitate the growth of renewables, India's power transmission infrastructure is slated to receive substantial investment, with an estimated USD 110 billion allocated from FY22 to FY32. The National Electricity Plan outlines major expansion targets, including investments in transmission lines and transformation capacity to support efficient power flow. Overall, the article emphasizes India's transition towards renewable energy sources as a key component of the country's power landscape, with renewables expected to play a significant role in meeting electricity demand and supporting India's sustainability goals.