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INDIA ADDA – Perspectives On India

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Authors

Aprameya Radhakrishna
Aprameya Radhakrishna
Colin Shah
Colin Shah
Shri P.R. Aqeel Ahmed
Shri P.R. Aqeel Ahmed
Dr. Vidya Yeravdekar
Dr. Vidya Yeravdekar
Alok Kirloskar
Alok Kirloskar
Pragati Khare
Pragati Khare
Devang Mody
Devang Mody
Vinay Kalantri
Vinay Kalantri
Varun Aggarwal
Varun Aggarwal
Erich Nesselhauf
Erich Nesselhauf
Ghanshyam Lal Vyas
Ghanshyam Lal Vyas
Mr Siddhartha Sacheti
Mr Siddhartha Sacheti

Energy for Sustainable Growth

Energy for Sustainable Growth

Introduction
Sustainable growth meets the current generation’s needs without jeopardising the ability of future generations to meet their own requirements. Sustainable energy enables sustainable growth and ensures citizens can access affordable, reliable, efficient and modern clean energy.

India ranks third in terms of energy production worldwide. India aims to use sustainable energy to improve its economic development, energy security and access to energy, and mitigate climate change. Strong support from the Indian government and substantial private sector investment has helped India become one of the world’s most attractive renewable energy markets.

Need for sustainable energy
India urgently needs to increase its share of alternate sustainable sources to generate energy. As of 31st January 2022, almost 60% of India’s power generation came from non-renewable fossil fuels – diesel, gas, coal and lignite. According to the Research Institute for Humanity and Nature, India ranks third on its list for carbon greenhouse gas emissions, accounting for 2.46 billion metric tonnes of carbon emission annually, which is 6.8% of the global total. India emitted 2.88 gigatonnes of CO2 annually as of 2019. To satisfy its energy needs, India is estimated to have imported around 180–190 metric tonnes of coal in FY22. In FY22, until February, India imported 193.5 million tonnes of crude oil worth US$ 105.8 billion.

Total Installed Power Generation Capacity

Fossil Fuels:

Installed Generation Capacity (MW)

% of share in total

Coal

203,900

51.6%

Lignite

6,620

1.7%

Gas

24,900

6.3%

Diesel

510

0.1%

Total Fossil Fuel

235,929

59.7%

 

 

 

Renewable Energy:

 

 

Hydro

46,512

11.8%

Wind

40,101

10.2%

Solar

50,304

12.7%

BM Power/Cogen

10,176

2.6%

Waste to Energy

434

0.1%

Small Hydro

4,840

1.2%

Total Renewable

152,366

38.6%

 

 

 

Nuclear

6,780

1.7%

 

 

 

Total Installed Capacity

395,075

100%

Source: Central Electricity Authority (CEA)

The above facts show India’s power needs are still heavily dependent on these non-renewable sources of energy, which are harmful to the environment and imported at a high cost. In fact, according to a Greenpeace India analysis, replacing coal plants with renewable energy sources can help India save Rs. 54,000 crore (US$ 7.11 billion) annually due to reduced power costs.

Growth of renewable sources of energy
Over the past few years, India has made substantial strides in solar, wind and hydro energy, which are the three biggest sources of renewable energy generation in the country.

1. Solar Energy:
India’s solar energy potential is immense. Solar power installed capacity has increased over 19 times, from 2.63 GW in March 2014 to 50.3 GW at the end of January 2022. Furthermore, between April-December 2021, India added 7.4 GW of solar power capacity, up 335% YoY. India also has a good standing globally with respect to solar energy. India stood fifth globally in terms of the maximum installed capacity of solar rooftop installations. Gujarat, Rajasthan, Haryana and Maharashtra account for 57.56% of the solar rooftop installations in India as of January 2022. Off-grid solar power is also growing fast in India, with sales of 329,000 off-grid solar products in the first half of 2021. The Bhadla Solar Park in Rajasthan's Jodhpur district is the largest solar power plant in the world. The power plant, which spans 14,000 acres, is fully operational and has a capacity of 2,250 MW.

2. Hydro Energy:
India overtook Japan to become the nation with the fifth largest hydropower production capacity in the world with a total installed capacity of over 51.35 GW. India has vast potential in the hydro power sector, which is being explored across various states, especially in the northeast. Installed capacity from large hydro projects in India increased from 35.9 GW in March 2008 to 46.5 GW as of December 2021, while capacity from small hydro plants increased four-fold to 4.8 GW in the same period.
Source: Ministry of Power

3. Wind Energy:
India has the fourth highest wind installed capacity worldwide with a total installed capacity of 39.25 GW. In 2021, India added 1.45 GW of wind energy capacity, a 30% YoY increase over the 1.11 GW capacity added in 2020. Tamil Nadu leads the country in terms of wind energy capacity at 9.8 GW. According to a new report by GWEC and MEC Intelligence (MEC+), between 2021 and 2025, India is expected to install around 20.2 GW of wind energy capacity.

Investments and recent developments
India ranked third on the EY Renewable Energy Country Attractive Index 2021. The renewable energy space has attracted considerable investments over the past few years. The renewable energy space in India received FDI inflow of US$ 11.21 billion during April 2000–December 2021. Few recent investments in the renewable space include:

  • In October 2021, the UAE announced an investment of US$ 75 billion in India, part of which will be used to collaborate on clean energy projects.
  • In October 2021, Adani Green Energy acquired SB Energy India for Rs. 26,000 crore (US$ 3.5 billion), making it India’s biggest renewable sector M&A deal.
  • In August 2021, Amp Energy India Private Limited signed an investment agreement with Copenhagen Infrastructure Partners (CIP) to facilitate joint equity investment of more than US$ 200 million across Indian renewable energy projects.
  • In June 2021, Reliance Industries announced an investment of Rs. 75,000 crore (US$ 10.07 billion) in a new green energy business vertical.

Government initiatives
The Indian government has taken multiple initiatives and implemented various policies to promote renewable energy generation in the country. In June 2021, India launched the Mission Innovation CleanTech Exchange, a global initiative that will create a whole network of incubators across member countries to accelerate clean energy innovation. Some of the recent initiatives in this space include:

  • In February 2022, Nepal and India agreed to form a Joint Hydro Development Committee to explore the possibility of viable hydropower projects.
  • In November 2021, the government announced future plans to increase funding for the PLI scheme for domestic solar cells and module manufacturing to Rs. 24,000 crore (US$ 3.17 billion) from the existing Rs. 4,500 crore (US$ 594.68 million).
  • The Ministry of New and Renewable Energy launched the Rooftop Solar Programme Phase II in July 2021 to encourage rooftop solar (RTS) installations across the country, particularly in rural areas, to install 4,000 MW of RTS capacity in the residential sector by 2022.
  • In July 2021, the Ministry of New and Renewable Energy (MNRE) gave approval to NTPC Renewable Energy Ltd. to build a 4,750-MW renewable energy park at the Rann of Kutch in Khavada, Gujarat, which will be India’s largest solar park.
  • During 2018–21, the government spent US$ 4.63 billion on hydroelectric projects to provide electricity to villages in Jammu and Kashmir.

Future outlook
The Indian government is fully aware of the benefits and need for sustainable energy. At the COP26 Summit in Glasgow, Prime Minister Mr. Narendra Modi announced India’s aim to reach net zero emission by 2070. He also promised to increase India’s renewable energy generation capacity to 500 GW and meet 50% of India's energy needs through renewable means by 2030. Today, India is one of the few G20 countries on track to achieve their targets under the Paris Agreement. In 2022, India’s renewable energy sector is expected to boom with a likely investment of US$ 15 billion this year, as the government focuses on electric vehicles, green hydrogen, and manufacturing of solar equipment.

 

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