India was ranked fourth in wind power, fifth in solar power and fifth in renewable power installed capacity as of 2018. India ranked third in EY Renewable Energy Country Attractive Index 2019. Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 17.33 per cent between FY14–FY20. Power generation from renewable energy sources in India reached 127.01 billion units (BU) in FY20. The renewable energy will account for 55 per cent of the total installed power capacity by 2030.
As on May 31, 2020, installed renewable energy capacity stood at 87.26 GW, of which, solar and wind comprised 34.91 GW and 37.75 GW, respectively. Biomass and small hydro power constituted 9.86 GW and 4.68 GW, respectively. By December 2019, 15,100 megawatts (MW) of wind power projects were issued, of which, projects of 12,162.50 MW capacity has already been awarded.
In 2019, India installed 7.3 GW of solar power across the country, establishing its position as the third-largest solar market in the world.
The Ministry of New and Renewable Energy under the supervision of the Government of India has formulated an action plan to achieve a total capacity of 60 GW from hydro power and 175 GW from other RES by March 2022, which includes 100 GW from solar power, 60 GW from wind power, 10 GW from biomass power and 5 GW from small hydro power. The Government plans to establish renewable energy capacity of 500 GW by 2030. This is proving to be the major thrust for the sector as the market players have enough incentive to move to clean source. The Government is aiming to achieve 225 GW of renewable energy capacity by 2022, much ahead of its target of 175 GW as per the Paris Agreement. Under Union Budget 2019-20, the Government allocated Rs 4,272.16 crore (US$ 611.26 million) for grid-interactive renewable energy schemes and projects, and Rs 3,004.90 crore (US$ 416.48 million) for the development of solar power projects, including grid-interactive, off-grid and decentralised categories. A total of 42 solar parks were approved to come up by May 2019.
As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWH by 2040, renewable energy is set to play an important role. By 2030, renewable sources are expected to help meet 40 per cent of India’s power needs.
India has been building a solar power plant in Rajasthan since 2019, which will be the world’s largest with a capacity of 2,255 MW. India plans to add 30 GW of renewable energy capacity along deserts on its western border of Gujarat and Rajasthan. Investment of around Rs 36,729.49 crore (US$ 5.26 billion) was made by private companies to generate renewable energy during April-December 2019.
India’s renewable energy space has become very attractive from investors’ perspective as it received FDI inflow of US$ 9.22 billion between April 2000 and March 2020.