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The Indian Government has targeted, as of 2022, 175 GW of renewable energy capacity to be installed, which includes 100 GW from solar, 60 GW from wind, 10 GW from biomass, and the remaining 5 GW from small hydropower. But it seems India is going to miss the targets.
As of July 2022, India’s installed renewable energy capacity (including hydro) stood at 161.28 GW, representing 39.91% of the overall installed power capacity. The country is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030 – about 280 GW (over 60%) is expected from solar.
Renewable energy sources have a combined installed capacity of 150+ GW. As of 31st August 2022, Renewable energy sources, including large hydropower, have a combined installed capacity of 163 GW. The following is the installed capacity for Renewables: Wind power: 41.2 GW.
In depth, let’s look at Renewable energy production and Indian government targets.
What is Renewable energy production?
Renewable energy is power generation from sources like the sun and wind. These are naturally refilled and do not run out. This Renewable energy is used for electricity generation, space and water heating and cooling, and transportation.
Non-renewable energy, in contrast, comes from limited sources that could get used up, such as fossil fuels like coal and oil.
What benefits do we get from Renewable energy?
- Increase reliability, security, and resilience of the nation’s power grid
- Create jobs all over renewable energy industries
- It decreases carbon emissions and air pollution from energy production
- Increased affordability, as many types of renewable energy are cost-competitive with traditional energy sources
- Increase clean energy access for non-grid-connected, remote, coastal, or islanded communities.
What is new in Union Budget 2022 for Renewable energy in India?
- Additional allocation of INR 19500 Crore for solar PLI Scheme
- Launched Sovereign Green Bonds in public sector projects
- 5-7% biomass pellets to be co-fired in thermal power plants, saving 38 MMT of carbon dioxide annually
Market size for Renewable energy capacity in India
- As of July 2022, India’s installed renewable energy capacity (including hydro) stood at 161.28 GW, representing 39.91% of the overall installed power capacity.
- The country is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030 – about 280 GW (over 60%) expected from solar.
- The non-hydro renewable energy capacity addition stood at 4.2 GW for the first three months of FY23 against 2.6 GW for the first three months of FY22
- Solar power installed capacity has increased by more than 18 times, from 2.63 GW in March 2014 to 49.3 GW at the end of 2021. In FY22, till December 2021, India has added 7.4GW of solar power capacity, up 335% from 1.73 GW in the previous year. Off-grid solar power is growing at a fast pace in India, with sales of 392,000 off-grid solar products in the first half of 2021.
- Power generation from renewable energy sources (not including hydro) stood at 18.99 billion units (BU) in July 2022, up from 16.61 BU in July 2021.
- With a potential capacity of 363 GW and policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.
What is the current installed capacity of renewable energy in India?
- Wind power is 41.2 GW
- Solar Power is 59.34 GW
- Biomass/Co-generation is 10.2 GW
- Small Hydro Power is 4.88 GW
- Waste To Energy is 0.47 GW
- Large Hydro is 46.85 GW
- 59 solar parks with an aggregate capacity of 40 GW have been approved in India
- Solar Parks in Pavagada (2 GW), Kurnool (1 GW), and Bhadla-II (648 MW) are included in the top 5 operational solar parks of 7 GW capacity in the country
- The world’s largest renewable energy park of 30 GW capacity solar-wind hybrid project is under installation in Gujarat
- India offers an excellent opportunity for investments in the RE sector; $196.98 bn worth of projects underway in India
- Wind Energy has an off-shore target of 30 GW by 2030, with three potential sites identified
Significant investments and developments in the renewable energy sector in India
- In August 2022, Norfund, who manage the Norwegian Climate Investment Fund, and KLP, Norway’s biggest pension company, signed an agreement to buy a 49% share of a 420 MW solar power plant in Rajasthan for Rs. 2.8 billion (US$ 35.05 million).
- India generated 47.64 BU of solar power in the first half of 2022, a 34% YoY increase.
- Investment in renewable energy in India reached a record US$ 14.5 billion in FY22, an increase of 125% over FY21.
- Delhi’s Indira Gandhi International Airport (IGIA) has become the first Indian airport to run entirely on hydro and solar power. Around 6% of the airport’s electricity requirement.
- Ayana Renewable Power Pvt Ltd (Ayana) announced plans to set up renewable energy projects totaling 2 gigawatts (GWs) with an investment of Rs. 12,000 crores (US$ 1.53 billion) in Karnataka.
- India ranked third on the EY Renewable Energy Country Attractive Index 2021.
- In February 2022, Creduce Technologies-HCPL JV announced winning the bid for India’s single largest hydropower carbon credits project with Satluj Jal Vidyut Nigam, which will create more than 80 million carbon credits.
- In February 2022, Husk Power Systems, a renewable energy company working towards rural electrification, secured a US$ 4.2 million loan from the Indian Renewable Energy Development Agency (IREDA).
- In December 2021, India’s largest energy provider, Tata Power, was awarded a contract by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to set up a 300 MW wind-solar hybrid power plant.
- In October 2021, Reliance New Energy Solar Ltd. (RNESL) announced two acquisitions to build more capabilities. Both investments – REC Solar Holdings AS (REC Group), a Norway-based firm, and Sterling & Wilson Solar, based in India – exceeded US$ 1 billion and are expected to contribute to Reliance’s target of achieving the capacity of 100 GW of solar energy at Jamnagar by 2030.
- In October 2021, Adani Green Energy Ltd. (AGEL) acquired SB Energy India for US$ 3.5 billion to strengthen its position in the renewable energy sector in India.
- In August 2021, Copenhagen Infrastructure Partners (CIP) signed an investment agreement with Amp Energy India Private Limited to facilitate joint equity investments of US$ 200 million across Indian renewable energy projects.
- In July 2021, National Thermal Power Corporation Renewable Energy Ltd. (NTPC REL), NTPC’s fully-owned subsidiary, sent out a tender to domestic manufacturers to build India’s first green hydrogen fueling station in Leh, Ladakh.
- The NTPC is expected to commission India’s largest floating solar power plant in Ramagundam, Telangana, by May-June 2022. The expected total installed capacity is 447MW.
- The Solar Energy Corporation of India (SECI) implemented large-scale central auctions for solar parks and has awarded contracts for 47 parks with over 25 GW of combined capacity.
Steps taken by the Indian Government in the renewable energy sector
- In the Union Budget 2022-23, the Solar Energy Corporation of India (SECI) allocation, which is currently responsible for the development of the entire renewable energy sector, stood at Rs. 1,000 crores (US$ 132 million).
- In the Budget, the Government allocated Rs. 19,500 crores (US$ 2.57 billion) for a PLI scheme to improve the production of profitable solar modules.
- In February 2022, Nepal and India governments signed an agreement to form a Joint Hydro Development Committee to search for the probability of viable hydropower projects.
- In November 2021, at the Cop-26 Summit in Glasgow, Prime Minister Mr. Narendra Modi promised to increase India’s renewable energy generation capacity to 500 GW and meet 50% of India’s energy needs through renewable means by the year 2030.
- In October 2021, the Ministry of Power announced a new set of rules to reduce financial stress for stakeholders and safeguard timely cost recovery in electricity generation.
- In August 2021, the Indian Government proposed new rules for purchasing and consuming green energy. The latest rules are a part of government measures to encourage large-scale energy consumers, including industries, to leverage renewable energy sources for regular operations.
- In July 2021, to encourage rooftop solar (RTS) throughout the country, notably in rural regions, the Ministry of New and Renewable Energy plans to undertake Rooftop Solar Programme Phase II, which aims to install RTS capacity of 4,000 MW in the residential sector by 2022 with a provision of subsidy.
- In July 2021, the Ministry of New and Renewable Energy (MNRE) gave the go-ahead to NTPC Renewable Energy Ltd., a 100% subsidiary of NTPC, to build a 4,750 MW renewable energy park at the Rann of Kutch in Khavada, Gujarat. It will be India’s largest solar park developed by the country’s leading power producer.
- The Government of India has announced plans to implement a US$ 238 million National Mission on advanced ultra-supercritical technologies for cleaner coal utilization.
- Indian Railways is making increased efforts through sustained energy efficient measures and maximum use of clean fuel to reduce emission levels by 33% by 2030.
- The Government has spent US$ 4.63 billion on hydroelectric projects to provide electricity to villages in Jammu and Kashmir from 2018-21.
Targets for Renewable Energy capacity production in India till 2030 to 2070
- India has set an aim to lessen the carbon intensity of the nation’s economy by less than 45% by the end of the decade, achieve 50% increasing electric power installed by 2030, and achieve net-zero carbon emissions by 2070. Low-carbon technologies could create a market worth up to $80 bn in India by 2030.
- India’s target is to produce 5 MT of green Hydrogen by 2030. The green Hydrogen target is set at India’s electrolyze manufacturing capacity projected to reach 8 GW per year by 2025. The cumulative value of the green hydrogen market in India could reach $8 bn by 2030, and India will require at least 50 gigawatts (GW) of electrolyzers or more to boost hydrogen production.
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