From Ambition to Execution: Why 2026 Will Test India’s Energy Transition

The year 2025 marked a decisive turning point for India’s energy sector, not just in terms of capacity addition but in the shift in mindset from ambition to results.

Accelerating renewables, efficiency-led decarbonisation, and digital adoption delivering measurable returns, alongside renewed momentum in nuclear energy, point to a more integrated and commercially grounded phase of the energy transition.

As we look ahead to 2026, energy investment themes remain broadly consistent, but the way companies extract $value from them will increasingly differentiate winners from the rest.

(A) 'Strengthening the Core',

AI is rapidly democratising technology adoption across the energy value chain, with global majors already unlocking 1–1.5% incremental EBITDA through sharper decision-making and operational optimisation. The focus is shifting from technology deployment to measurable value realisation.

Decarbonisation will continue to be a priority, but with a sharper emphasis on energy efficiency as a cost-reduction lever supported by tools such as digital twins and advanced analytics.

Similarly, the smart metering rollout is a critical enabler, but its true impact will depend on how effectively utilities plan to leverage the vast data it generates to improve customer engagement, loss reduction and network performance.

(B) Value Addition

In downstream segments, petrochemicals will see growth moving beyond commodity plays into speciality and niche chemicals, where strong B2B and B2C demand linkages will be key.

Non-fuel retail is emerging as a significant profit pool, allowing energy companies to become more customer-oriented while unlocking new revenue streams.

(C) Readiness for the Future

On renewables, India has already achieved nearly 50% capacity, almost five years ahead of its 2030 target. Schemes such as the PM Surya Ghar Yojana can further accelerate rooftop solar adoption, even as bottlenecks in grid connectivity and storage capacity need to be addressed.

Green hydrogen, particularly through green ammonia, presents a strong export opportunity

Private sector participation in small modular reactors will give new strength to our energy security and technological leadership.

New investment areas such as data centres, sustainable aviation fuel and nuclear energy are gaining momentum, supported by clear government intent and global platforms like the International Solar Alliance and the Global Biofuels Alliance.

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