The Indian renewable energy sector is the fourth most attractive renewable energy market in the world as per the Renewable Energy Attractiveness Index 2018. Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 19.78 per cent between FY14–18. Power generation from renewable energy sources in India reached 101.84 billion units in FY18 and 126.76 billion units during April 2018-March 2019. As of October 2018, India ranked 5th in installed renewable energy capacity. India ranked second among the emerging economies to lead to transition to clean energy in 2018.
As of April 2019, total renewable power installed capacity (excluding large hydro) in the country stood at 79.03 GW. Overall, India added 8.62 GW of grid interactive renewable energy capacity in FY19.
The Ministry of New and Renewable Energy, 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 of Solar power, 60 GW from wind power, 10 GW from biomass power and 5 GW from small hydro power. This has been proving to be the major thrust for the sector in India as the market players have sufficient incentives to move to clean source. As of June 2018, Government of India 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 2018-19, Rs 3,762 crore (US$ 581.09 million) has been allocated for grid-interactive renewable energy schemes and projects. The Government of India allocated Rs 3,004.90 crore (US$ 416.48 million) in the interim budget 2019-20 for development of solar power projects including both grid-interactive and off-grid and decentralized categories.
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. New investments in clean energy in the country reached US$ 11 billion in 2017. In the first half of 2018, investments in clean energy in India reached US$ 7.4 billion. The non-conventional energy sector received a total FDI equity inflow of US$ 7.83 billion in FY19.