Written by Diksha Sharma
India’s renewable energy market has experienced tremendous expansion lately and shows great potential for the future. This sector’s diverse mix of renewable sources, including bio-power and small hydro, has already generated 89.90 billion units of electricity in FY24 (until January 2024). Rural development, economic expansion, and employment possibilities abound in the renewable energy sector, contributing to the economic growth rate in India.
Present Situation of Renewable Energy in India
The Green Energy Corridor, the Wind-Solar Hybrid Policy, and the Production Linked Incentive Scheme (PLI) were a few policies to support renewable energy. Solar and wind power are primarily responsible for the notable rise in the installed renewable energy capacity (136.6 GW) till January 2024.
1. Market size
The table offers an understanding of India’s installed capacity for renewable energy through recent years, enabled by increased market size as well as increased government acceptance.
| Installed Renewable Energy Capacity* | (in GW) |
| FY21 | 94.4 |
| FY22 | 111.4 |
| FY23 | 125.2 |
| FY24* | 136.6 |
*Note:* denotes information till January 2024.
2. Sector Composition
Solar power makes up around half the total renewable energy capacity available. Wind power closely follows. Small Hydro and Bio-Power add 4.99 GW and 10.28 GW to the sector composition. This varied combination of renewable energy sources emphasises India’s will to use several clean energy technologies, installed resource capacity, and recent years’ growth patterns.
| Sector Composition | GW (Billion Units) |
| Solar Power | 76.57 |
| Wind Power | 45.16 |
| Bio-Power | 10.28 |
| Small Hydro | 4.99 |
3. Key Trends
The generation of power from renewable sources has shown an upward trend. Beginning with a relatively minor base of 3.6 billion units in FY16, the generation has progressively climbed to 89.90 billion units in FY24, till January. Driven by favourable government regulations and a rising focus on sustainable and clean energy solutions, this fantastic growth trajectory emphasises the increasing proportion of renewable energy sources in the total electricity generating mix.
| Electricity Generation | (billion units) |
| FY16 | 3.6 |
| FY17 | 5 |
| FY18 | 10.3 |
| FY19 | 25.8 |
| FY20 | 34.2 |
| FY21 | 40.23 |
| FY22 | 72.3 |
| FY23 | 89.9 |
| FY24 | 89 |
*Note:* denotes information till January 2024.
4. Government Initiatives
Source: X/BYadavBJP
Numerous important government projects meant to advance renewable energy sources in India. The Green Energy Corridor is a project for dedicated transmission infrastructure and grid integration for renewable energy sources. The Wind-Solar Hybrid Policy is another proposal under consideration. The Solar Parks and Ultra-Mega Solar Power Projects highlight the government’s focus on building massive solar power parks to hasten national solar energy adoption.
1. Green Energy Corridor: The goal of this project is to build dedicated transmission infrastructure for renewable energy sources, making it easier to integrate huge amounts of renewable energy capacity into the national grid.
2. Wind-Solar Hybrid Policy: Introduced in 2018, this policy aims to maximize the use of wind and solar resources, transmission infrastructure, and land by merging the two technologies.
3. Solar Parks and Ultra-Mega Solar Power Projects: The goal of this program is to build enormous solar power parks in order to speed the widespread adoption of solar energy.
4. National Hydrogen Mission: This program, launched in 2021, intends to establish India as a global powerhouse for green hydrogen production and export.
5. PM-KUSUM: The Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan. This program assists farmers in building solar pumps and grid-connected solar power plants on their farms.
5. Future Energy Prospects in India
As of 2023, India is the third-largest country in new and solar power capacity, and fourth in renewable energy installed capacity, demonstrating tremendous growth in the renewable energy sector. The country’s commitment to programs such as the Green Energy Corridor and the Wind-Solar Hybrid Policy reflects its desire to improve renewable energy cooperation, supply chain strength, and power grid connectivity.
Businesses and Organisations in the Sector
1. ReNew Power: One of India’s major renewable energy enterprises, specialising in solar and wind power projects.
2. Adani Green Energy: A large renewable energy developer with substantial investments in solar and wind projects.
3. Tata Power Renewable Energy: A Tata Power company that works on clean and renewable energy initiatives.
4. Greenko Group: A leading renewable energy provider with a wide range of hydro, solar, and wind projects.
Government projects and laws
1. Solar
Aiming to reach gigawatt-scale production capacity, the government runs the Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules. With a budget of Rs. 19,500 crore (USD 2.35 billion), Letters of Award were given for developing 39,600 MW of integrated solar PV module manufacturing plants under Tranche-II.
With 50 solar parks approved across 12 states, the Solar Park Scheme now boasts 40,000 MW capacity. Supported by subsidies and concessional loans, the PM Surya Ghar Muft Bijli Yojana seeks to offer one crore homes free rooftop solar electricity.
2. Wind
The National Wind-Solar Hybrid Policy aims to promote large grid-connected wind-solar hybrid systems. India’s wind energy sector has grown significantly.
The Ministry of New and Renewable Energy (MNRE) has implemented various schemes to promote wind energy, including the Offshore Wind Energy Policy and the Wind Repowering Policy.
3. Hydro
India has recognised large hydropower projects (>25 MW) as renewable energy sources. The government aims to achieve 70 GW of hydropower capacity by 2030, emphasising pumped storage projects for grid stability.
4. Biomass
The Indian government promotes biomass power generation through various initiatives, including the Biomass Power and Cogeneration Programme. The National Policy on Biofuels, revised in 2018, targets 20% ethanol blending in petrol by 2025.
Forces Behind Future Development
Other significant projects include the dedication to reach net-zero emissions by 2070, raising the renewable energy target to 500 GW by 2030, funding for ISTS infrastructure for Ladakh renewable energy from Ladakh approved, and approval of the Sovereign Green Bonds structure to draw investments in green projects.
By less than 45% by 2030, India wants to have 50% of its cumulative installed capacity from renewable sources by 2030 and by 2070 net-zero carbon emissions. The carbon intensity of its economy should be less than 45% after that.
By 2030, low-carbon technology might generate an Indian market valued up to USD 80 billion. India wants to create five million tons of green hydrogen by 2030, and by 2025, its ability to manufacture electrolysers should reach 8 GW annually.
At least 50 GW of electrolysers will be needed to increase the output of India’s green hydrogen market, which might reach USD 8 billion by 2030.
India’s ambitious renewable energy targets are changing its power sector because of the growing population and the need for clean energy to run homes and communities.
Adopting renewable energy will help lower pollution levels and encourage self-sustainable communities through their clean energy consumption.
With an eye on electric vehicles, green hydrogen, and solar equipment manufacturing, India’s renewable energy industry is estimated to draw over USD 15 billion in investment in 2022.
Supported by effective battery storage systems that might lower solar energy prices by 66%, renewable energy is expected to produce around 49% of India’s total electricity by 2040.
Changing coal for renewable energy might save India Rs. 54,000 crore (USD 8.43 billion) yearly, and between 2020 and 2025, about 15,000 MW of wind-solar hybrid capacity are scheduled to be added.
The Central Electricity Authority (CEA) projects that by 2029-30, the proportion of renewable energy generation will rise from 18% to 44%.
With India’s power need predicted to reach 817 GW by 2030, thermal generation is expected to drop from 78% to 52%.
Problems and Obstacles
India’s renewable energy sector has achieved fantastic development, but various issues and obstacles must be resolved to sustain and quicken its growth.
1. Integrating Big-Scale Renewable Energy
These projects into the current grid architecture present significant difficulties for transmission infrastructure. An essential chore is upgrading and extending the transmission network to handle the flood of renewable energy.
2. Environmental Issues and Land Acquisition
Large-scale solar and wind farms require significant land area. Purchasing appropriate land sites can be a difficult and time-consuming procedure that frequently requires talks with several stakeholders and resolving environmental issues, including habitat fragmentation and effects on biodiversity.
Industries with Tough Environmental Regulations
Due to their intrinsic environmental impact, several businesses face major hurdles in meeting environmental requirements. The mining industry plays a key role in economic development, but it is typically subject to strict environmental laws due to the risk of ecological damage.
Issues include:
1. Deforestation and habitat damage.
2. Water contamination due to acid mine drainage
3. Air pollution due to dust and pollutants.
4. Soil Contamination
To solve these issues, the green mining, the technology, best practices, and mine procedures used to lessen the environmental impact of metal and mineral extraction and processing, has evolved.
Key features of green mining include:
- Water Management: Using closed-loop water systems to reduce water consumption and prevent contamination of local water supplies.
- Energy Efficiency: Using renewable energy sources in mining operations and enhancing energy efficiency in processes.
- Trash Reduction: Using measures to reduce trash generation and recycle mine tailings.
3. Capital Costs
Renewable energy projects’ high upfront capital costs can be a significant obstacle in financing and investment, particularly for small-scale and dispersed generation projects. Meeting the finance needs of the sector depends on drawing in enough investments from both home and foreign sources.
Establishing robust financing systems, including green bonds and renewable energy investment funds, can assist in lessening these difficulties.
4. Improved Technologies
Although renewable energy technologies have improved significantly, ongoing research and development are necessary to improve efficiency, lower costs, and solve technical restrictions. Further invention and technical advances are needed in energy storage, grid integration, and renewable energy forecasting.
5. Fast Expansion
The fast expansion of the renewable energy sector has generated a need for qualified experts in several spheres, including project development, engineering, operations, and maintenance.
6. System Integration
The intermittent nature of renewable energy sources presents issues for system stability and management. Improving transmission infrastructure and adopting smart grid technologies are critical.
Conclusion
India is dedicated to sustainable development and the rising demand for clean energy. The country’s renewable energy sector shows bright future possibilities. The significant progress made in solar and wind power and frameworks play in promoting the economic growth rate in India. A multi-stakeholder strategy is necessary to meet lofty government targets.
