India aims to achieve 500 GW of renewable energy capacity by 2030, with 40-50 GW of additional capacity over time. 

India is expected to see an 83% increase in investments in renewable energy projects to around USD 16.5 billion in 2024, driven by the country’s focus on energy transition and carbon emissions reduction. The Solar Energy Corporation of India (SECI) has called for incentives for green hydrogen production and electrolyzer manufacturing facilities. 21 companies have bid for incentives under the SIGHT Scheme.

India’s solar power generation has surged due to sunlight and government incentives, with the top five states leading the charge in the country’s solar revolution, highlighting their unique contributions to the country’s renewable energy landscape.

Similarly, India has made great strides in the generation of wind energy over the years, and it now ranks fourth in wind power capacity in the world. India’s wind energy production holds significant potential for both onshore and offshore use, crucial for achieving Net Zero by 2070, and 50% of its electric power installed capacity from non-fossil fuels. The government has successfully developed around 15 GW of domestic wind manufacturing capacity, making the country Aatma Nirbhar.

The trends show that opportunities for all the stakeholders in the renewable energy segment have increased exponentially.

Top solar and wind power projects in the country:

India aims to achieve 500 GW renewable energy capacity by 2030, with 40-50 GW capacity additions. India’s National Institute of Wind Energy (NIWE) has launched the Wind Atlas, estimating its onshore wind potential at 1,164 GW at 150 meters above ground level.

1. Rajasthan, India’s “Land of Kings,” is a major solar power producer with the world’s largest Bhadla Solar Park and India’s largest wind park, Jaisalmer Wind Park. The state is exploring energy storage options to maximize solar power use and improve system stability. Rajasthan has been recognized for achieving the highest wind capacity addition, Gujarat for open access, and Tamil Nadu for repowering wind turbines.

2. Karnataka has become India’s solar powerhouse, with the Pavagada Solar Park near Tumkur. With a capacity of over 2,050 MW, the park captures sunlight, increasing energy demands and boosting regional economic development. Key accomplishments include capacity expansion, building solar parks, increasing rooftop solar installations, attracting investors, and promoting renewable energy adoption.

3. Gujarat, India’s “Jewel of the West,” is a leader in solar energy installations, with over 790 MW capacity and promoting rooftop solar rooftops. As of April 2023, Gujarat had over 10 gigawatts of installed wind power,  which was almost one-fourth of the total wind capacity installed in the country.

4. Tamil Nadu, India’s south, leads in renewable energy, particularly solar power generation, with over 3,500 MW of capacity. It also pioneered solar energy farming, providing additional revenue for farmers. With an installed wind energy capacity of 10,247 MW, the state accounts for 23% of the total installed (wind energy) capacity across India and ranks second in the country.

5. Telangana, India’s youngest state, has significantly increased its solar power capacity with the Bhongir Solar Park, which has a capacity of over 1,000 MW. The park’s solar panels reduce the state’s reliance on traditional energy sources and contribute to sustainability. Telangana’s progressive solar policy encourages solar project development and has also deployed solar-powered pump sets in the agricultural sector.

Policy drives growth in the renewable energy segment:

• India’s government aims to reduce carbon emissions by 1 billion tonnes by 2030, reduce economy intensity by 45% by the end of the decade, and achieve net-zero emissions by 2070. 
• Solar parks: The government is promoting solar cities and parks, with 57 parks of 39.28 GW across the nation. 
• National Green Hydrogen Mission: The Union Cabinet approved the National Green Hydrogen Mission with a total initial outlay of INR 19,744 Cr, including an outlay of INR 17,490 Cr for the SIGHT program, INR 1,466 Cr for pilot projects, INR 400 Cr for R&D, and INR 388 Cr towards other Mission components.
• Off-shore Wind Energy: The medium and long-term targets for off-shore wind power capacity additions are 5 GW by 2022 and 30 GW by 2030.
• Wind-Solar Hybrid Policy: In 2018, a national policy was announced to promote an extensive grid-connected wind-solar PV hybrid system for efficiently utilizing transmission infrastructure and land. A way to address the intermittency challenge of one renewable power source is to combine solar and wind, achieving better grid stability. It provides flexibility in a share of wind and solar components in the hybrid project; however, the capacity of one resource must be at least 25% of the rated power capacity of other resources. 
• AatmaNirbhar Bharat: PLI scheme in Solar PV manufacturing with financial outlays of INR 24,000 Cr introduced under AatmaNirbhar Bharat. Imposition of Basic Customs Duty of 25% on Solar Cell & 40% on Solar PV Modules w.e.f. 01.04.2022.
• The Coal Ministry held an Industry Interaction in Hyderabad to promote coal/gasification projects in India. Secretary Shri Amrit Lal Meena highlighted the government’s support for cleaner coal technologies and energy security through easier land availability, financing, and incentives. Industry experts discussed opportunities, R&D efforts, including opportunities in coal gasification, R&D efforts, Blue Hydrogen Coal Gasification linked with Carbon Sequestration, High Ash Coal Gasification, and Upscaling R&D in High Ash Coal Gasification. 

Prospects:

In the Union Budget 2022-23, the government allocated Rs. 19,500 crore (US$ 2.57 billion) for a PLI scheme to boost the manufacturing of high-efficiency solar modules.

India launched the Mission Innovation CleanTech Exchange, a global initiative that will help accelerate clean energy innovation.

In the last five years, the country’s solar installed capacity has experienced a monumental transformation, increasing from 21,651 MW to 70,096 MW in 2023. With ambitious targets and policies like the Production Linked Incentive (PLI), India is propelling itself to achieve 500 GW of renewable energy capacity by 2030.

The Indian offshore wind market is expected to accelerate towards 2027 with annual installations increasing from 1.8 GW in 2022 to 2.8 in 2023, 3.7 GW in 2024, and peaking at 5 GW in 2025 in the base case. Overall, India’s wind market offers an opportunity for 21.1 GW of installations from 2023-2027.

The International Institute for Sustainable Development (IISD), a recognized independent think tank dedicated to advancing solutions for equitable resource management, a stable climate, and fair economies, highlights the steps taken by the Indian Navratnas to embrace sustainable alternatives in their economies. 

India’s Government-Owned Energy Companies, 2020–2050: Determining strategies for evidence-based diversification written by Christopher Beaton, Andrea M. Bassi, Georg Pallaske, Swasti Raizada, and Balasubramanian Viswanathan, highlights PSU’s approach to utilizing RE.

The Union government has set an ambitious target of achieving 175 GigaWatt (GW) of installed capacity from renewable energy sources by 2022, which includes 100 GW of solar and 60 GW of wind power capacity.

Our take:

The renewable energy segment is opening umpteen opportunities for the private as well as public sector players in the country. The sector is also seeing considerable interest, and therefore, investments from the global players. The need of the hour is to leverage the opportunities. Partnerships and collaboration will be key to reaching the scale, enabling mass-scale adoption and resource optimization.