Powering the Future: India's Rapid Rise in Renewable Energy

-Ishan Singh (Investment Analyst)

India's renewable energy sector is undergoing rapid expansion, backed by ambitious government targets and favourable policy frameworks. Renewable energy sources, such as wind, solar, bio power, and small hydro power, play a significant role in India's energy mix. In March 2019, the Union Cabinet classified hydro power projects as renewable energy initiatives. These renewable sources can either be connected to the grid or operate as off-grid systems, which are particularly valuable for providing energy to remote areas that are unlikely to be electrified soon. 

Examples of off-grid systems include biomass-based heat and power projects, industrial waste-to-energy projects, and solar rooftop installations.

However, it's important to note that wind and solar power generally have a lower plant load factor (PLF) compared to thermal power, primarily due to the fluctuating nature of wind speed and sunlight, with PLF often averaging 20-25%. As a result, more renewable capacity needs to be installed compared to thermal plants to produce an equivalent amount of electricity.

Globally, India ranks fourth in installed Renewable Energy Capacity, including large hydro. The country set an ambitious target at COP26 to achieve 500 GW of non-fossil fuel-based energy by 2030, which is a key commitment under India's "five nectar elements" (Panchamrit) for climate action. This plan represents the largest expansion in renewable energy in the world.

India also recorded the highest year-on-year growth in renewable energy additions at 9.83% in 2022. Over the last nine years, the country's installed solar energy capacity has increased thirtyfold, reaching 82.63 GW as of April 2024.

India is endowed with vast solar energy potential. About 5,000 trillion kWh per year of energy is incident over India’s land area with most parts receiving 4-7 kWh per sq. m per day. Solar photovoltaic power can effectively be harnessed providing huge scalability in India.

The National Institute of Solar Energy has assessed the Country’s solar potential of about 748 GW assuming 3% of the wasteland area to be covered by Solar PV modules.

As per the Global Electricity Review 2024, India surpassed Japan to claim the title of the world's third-largest solar power generator in 2023 from 9th ranking in 2015. 

 

As of Apr 2024, Renewable energy sources, including large hydropower, have a combined installed capacity of 191.67 GW. 

The following is the installed capacity for Renewables:

• Wind power: 46.16 GW

• Solar Power: 82.63 GW

• Biomass/Co-generation: 10.35 GW

• Small Hydro Power: 5 GW

• Waste To Energy: 0.59 GW

• Large Hydro: 46.92 GW

 

India's renewable energy journey reflects a transformative shift towards sustainability, bolstered by ambitious targets and innovative policies. As the country continues to rank among the global leaders in renewable capacity, its achievements in solar, wind, and other green energy sectors showcase its commitment to combating climate change and ensuring energy security. This remarkable progress not only propels India toward its climate goals but also positions it as a beacon of hope for a sustainable future.

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