India Marching Towards Energy Independence with Renewables
India's commitment to renewable energy is evident through significant growth in solar, wind, and hydropower sectors. Investments and policies are driving a strategic path to sustainable energy independence.
August 15, 2024. By EI News Network
As India celebrates its 78th Independence Day, the country seems to have embraced the spirit of the above-mentioned lines from the Indian army band tune by moving step by step in its journey towards a renewable energy transition and aiming for energy independence by 2047.
Undoubtedly, as one of the largest power consumers, India has a responsibility to lead the renewable energy (RE) revolution. The nation has set its sights on 2030, envisioning a future with a target of 500 GW of RE capacity,where RE plays a major role and contributes majorly to the growth story of a green India.
The year 2047 is expected to change the country’s energy scenario with contributions from electric mobility, CNG and piped natural gas, 20 percent ethanol blending and green hydrogen production.
As of the latest renewable energy (RE) data, India has reached around 150 GW of total RE capacity, with solar energy emerging as a key driver in this transition. According to the Ministry of New and Renewable Energy (MNRE), India’s installed solar power capacity stands at approximately 87.2 GW as of mid-2024. In July alone, the country added 1,733.7 MW, demonstrating robust momentum in solar development. For fiscal year 2024, India has installed 5,394 MW of solar power, bringing the total for the year to about 15 GW.
Furthermore, India’s solar ambitions are reflected in the National Solar Mission, which aims to achieve 100 GW of solar capacity by 2030. It should be noted that large-scale solar parks and rooftop solar installations will be crucial in reaching these targets.
In addition, the Solar Park Scheme has been instrumental in developing extensive solar infrastructure, while the ALMM List, Production Linked Incentive (PLI) scheme, and the PM-KUSUM Scheme, which focuses on solar power in agriculture, have bolstered domestic manufacturing of solar modules. These initiatives aim to reduce reliance on imports and foster growth in the local industry. The solar sector is undeniably playing a crucial role in India’s green growth story.
Wind energy is another cornerstone of India’s renewable energy strategy. As of July 2024, the country’s installed wind energy capacity stands at 47.07 GW, following the addition of 419.06 MW in July. The latest data from MNRE underscores the strategic focus on harnessing wind resources, particularly in states like Tamil Nadu, Gujarat, and Maharashtra, known for their wind potential.
Government policies, including accelerated depreciation benefits and feed-in tariffs, have been critical in attracting investment and scaling up wind projects. These measures have facilitated the expansion of wind energy infrastructure and improved the efficiency of wind power generation. Additionally, efforts to enhance grid integration and upgrade technology are ensuring that wind energy can reliably contribute to the national energy mix.
India’s commitment to wind energy is evident in its ongoing efforts to optimise wind power utilisation and support the sector’s growth. As the country continues to invest in wind energy, it aims to consolidate its position as a leader in this field.
Hydropower remains a significant component of India’s renewable energy strategy. With an installed capacity of approximately 50 GW, the hydropower sector continues to play a crucial role in meeting the country’s energy needs. The MNRE report has also highlighted the ongoing modernisation efforts and the development of hybrid hydropower projects,integrating solar and wind energy. This hybrid approach helps address the intermittency challenges associated with renewable sources and enhances grid stability.
Additionally, government support for hybrid projects encompasses financial incentives, streamlined regulatory processes, and investments in infrastructure development. These initiatives are expected to drive innovation and growth in the hydropower sector.
Also, to attract significant investment, data from the Department for Promotion of Industry and Internal Trade (DPIIT) reveals that the non-conventional energy sector has received USD 15.36 billion in foreign direct investment (FDI) between April 2000 and September 2023. Since 2014, over INR 5.2 lakh crore (USD 70 billion) has been invested in India’s renewable energy sector.
Looking ahead, the sector is expected to attract over USD 250 billion in investments, with solar photovoltaic (PV) projects expected to receive USD 15.5 billion and battery manufacturing projected to garner USD 2.7 billion. Moody’s estimates that India will need between USD 190 billion and USD 215 billion over the next seven years to achieve its target of 500 GW of renewable energy capacity by 2030. Additionally, another USD 150 billion to USD 170 billion will be required for enhancing electricity transmission, distribution, and energy storage infrastructure.
Some of the notable developments include Radiance Renewables’ partnership with the UK’s Private Infrastructure Development Group to form Radiance InfraCo Renewables. This joint venture will concentrate on greenfield solar and wind-solar hybrid projects, playing a key role in India’s drive towards achieving net-zero emissions by 2070.
Similarly, Maruti Suzuki India plans to invest INR 450 crore (USD 54 million) in renewable energy projects, including a biogas plant and solar capacity expansion. NTPC Green Energy Ltd. is investing INR 80,000 crore (USD 9.59 billion) in Maharashtra, supporting green hydrogen, ammonia, and methanol projects, along with pumped storage and renewable energy initiatives.
However, proper implementation of the schemes and an inclusive approach to the overall development of the nation in renewable energy will be crucial for meeting the country’s long-term sustainability objectives and establishing a global benchmark for environmental leadership.
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