India’s renewable energy sector continues its meteoric rise, transforming its energy landscape. This update dives into the latest trends and future prospects of this dynamic industry. Just a decade ago, India’s renewable energy sector was in its nascent stages. However, a series of ambitious government targets and falling solar panel costs ignited a revolution.
India’s Climate Action and Global Commitment
India is on the path to implementing the world’s largest Renewable Energy (RE) expansion program, aiming for a five-fold increase in overall RE production capacity. Under the leadership of Prime Minister Narendra Modi, India has set a target to install 500 GW of renewable energy capacity by 2030. This ambitious goal is supported by abundant solar energy and local technology, which are essential in reducing carbon emissions and achieving energy independence, aligning with PM Modi’s mission of an Atmanirbhar Bharat, or self-reliant India.1
At the 26th session of the Conference of the Parties (COP26) in November 2021, PM Modi presented five nectar elements (Panchamrit) of India’s Climate Action Plan, including a commitment to net-zero emissions by 2070.2 He emphasized the need for a sustainable lifestyle through the ‘Lifestyle for Environment’ (LiFE) initiative, which gained further endorsement during the G20 Summit in September 2023. The New Delhi Declaration committed to implementing the LiFE initiative and promoting Artificial Intelligence towards achieving the UN Sustainable Development Goals (SDGs). The Green Development Pact reaffirmed G-20’s commitment to sustainable and green growth.
Major Initiatives and Policy Efforts
So many efforts have been made thus far, and these are commendable. In the Union Budget 2023-24, the Ministry of Power announced a Viability Gap Funding Scheme for 4,000 MWh Battery Energy Storage Systems, customs duty exemptions for machinery to manufacture EV batteries, and a significant Rs. 19,700 crore outlay for the Green Hydrogen Mission. Additionally, Rs. 35,000 crore was allocated for energy transition investments, and Rs. 20,700 crore for interstate transmission system upgrades. Other initiatives include the Green Credit Programme, PM Programme for Restoration of Mother Earth, GOBARdhan waste-to-wealth plants, natural farming promotion, MISHTI for mangrove plantations, Amrit Dharohar for wetland use, coastal shipping promotion, and funding to scrap old vehicles.3
The Government also facilitates FDI in renewable energy projects, waives ISTS charges, sets RPO targets, develops Ultra Mega Renewable Energy Parks, and launches schemes like PM-KUSUM. Additional measures include the Green Energy Corridor Scheme, transmission plans for 500 GW RE capacity by 2030, solar photovoltaic standards, Project Development Cells, competitive bidding guidelines, payment security for RE generators, Green Energy Open Access Rules, LPS rules, and the Green Term Ahead Market for renewable energy trading.4
Current Achievements
By June 2024, India boasts a staggering 193.57 GW of installed renewable energy capacity, exceeding the initial target of 175 GW set in 2015. This impressive figure translates to over 45% of India’s total power generation capacity coming from clean sources. Solar power reigns supreme, accounting for a whopping 84.27 GW of installed capacity. Wind power follows closely at 46.42 GW, showcasing a well-diversified renewable energy mix. Other contributing sources include biomass, small hydropower, and waste-to-energy, all playing a crucial role in India’s clean energy journey.5
With a population of 1.4 billion, India’s energy demand is massive. From a power deficit nation a decade ago, India has transformed into the world’s third-largest producer of renewable energy. Today, 40% of its installed electricity capacity (157.32 GW) comes from non-fossil fuel sources.
Challenges and Considerations
While the achievements are undeniable, headwinds exist. The first half of 2024 witnessed a slower pace of solar installations compared to previous years. This slowdown can be attributed to factors like rising coal dependence to meet surging power demands and policy uncertainties.
Looking Ahead: A Brighter Tomorrow
Despite the temporary setbacks, India’s commitment to renewables remains solid. The government has revised its target upwards to a staggering 450 GW by 2030, showcasing an steadfast commitment to a sustainable future. This ambitious target necessitates continued policy support, grid modernization, and innovative storage solutions to integrate a higher percentage of renewables into the national grid.
Investment Opportunities Abound
The renewable energy sector presents a lucrative avenue for investors. India’s expanding energy needs and increasing focus on clean energy create a perfect storm for significant capital inflows. This presents a unique opportunity for investors to contribute to a cleaner future while reaping the benefits of a rapidly growing market.
Conclusion
India’s renewable energy sector is a shining example of ambition translating into tangible results. The journey forward promises continued growth, innovation, and a greener tomorrow for the nation. By harnessing the power of the sun, wind, and other clean sources, India is not only securing its energy future but also setting a precedent for sustainable development on a global scale.
FAQs: Sustainable Energy
Renewable energy sources, such as solar, wind, and hydro power, reduce greenhouse gas emissions, decrease air pollution, and provide sustainable and inexhaustible energy supplies.
India is rapidly expanding its renewable energy capacity, aiming to achieve 450 GW of renewable energy by 2030, with significant investments in solar, wind, and hydroelectric projects.
Transitioning to renewable energy involves investing in clean energy technologies, implementing supportive policies, upgrading infrastructure, and raising public awareness about the benefits of sustainable energy.
Sustainable energy resources include solar power, wind power, hydropower, biomass, and geothermal energy. These resources are abundant, environmentally friendly, and renewable.
Renewable energy initiatives include government incentives for solar panel installations, wind farm developments, research and development in clean technologies, and international agreements to reduce carbon emissions.
India is a leading country in green energy adoption, with extensive projects in solar parks, wind farms, and hydroelectric power plants. The country aims to achieve significant renewable energy targets in the coming years.
Renewable energy is essential to combat climate change, reduce dependence on fossil fuels, ensure energy security, and promote sustainable development for future generations.
Clean renewable energy sources include solar, wind, hydro, and geothermal energy, which produce minimal pollutants and have low environmental impacts compared to fossil fuels.
India has launched various initiatives such as the National Solar Mission, wind energy projects, biomass power programs, and policies promoting decentralized renewable energy systems to boost clean energy adoption.
References
1 https://economictimes.indiatimes.com/industry/renewables/modis-atmanirbhar-bharat-push-india-can-achieve-energy-independence-by-2047-us-report/articleshow/98811120.cms?from=mdr
2 https://www.downtoearth.org.in/climate-change/cop26-modi-offers-panchamrita-concoction-for-climate-conundrum-at-glasgow-80001
3 https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1907698
4 https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1989822
5 https://www.investindia.gov.in/sector/renewable-energy