INDIA ADDA – Perspectives On India

IBEF works with a network of stakeholders - domestic and international - to promote Brand India.



Dikshu C. Kukreja
Dikshu C. Kukreja
Mr. V. Raman Kumar
Mr. V. Raman Kumar
Ms. Chandra Ganjoo
Ms. Chandra Ganjoo
Sanjay Bhatia
Sanjay Bhatia
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

India's Green Energy Potential

India's Green Energy Potential


With a booming population of 1.3 billion, India is a fast-growing nation that has a massive demand for energy. Being a power-deficit nation during the time of independence, India has continued making efforts for over seven decades to become an energy-independent nation. With more than 4 lakh MW of installed electrical capacity, India is finally a power-surplus nation. With the growing importance of green energy and working towards sustainable development goals, India's power generation mix is transitioning towards a greater proportion of renewable energy. The foremost goal of deploying renewable energy in India is to advance economic development, improve energy security, better access to energy sources, and mitigate climate change.  As of November 2021, India produced 40.1% of its installed electrical capacity from renewable sources, demonstrating the greater green energy potential in India. Moreover, India ranked 3rd in the renewable energy country attractive index and is the 3rd largest energy-consuming country in the world. India committed to a 40% share of power generation from non-fossil fuel sources at the Conference of the Parties (COP)-21 in Paris in 2015, and India has already met this goal before the year 2030. The government’s five-pronged strategy, ‘Panchamrit’ to achieve the country's ambition of Net Zero Emissions by 2070 are:

  • Increasing renewable energy capacity to 500 GW by 2030
  • Procuring 50% of energy requirements from renewable sources by 2030
  • Reducing the total projected carbon emissions by 1 billion tonnes by 2030
  • Decreasing India's carbon intensity of the economy by less than 45% by 2030
  • India would be carbon neutral and achieve net zero emissions by 2070

Types of Green Energy

Renewable energy

It is also called green energy or clean energy - is a natural and self-replenishing energy that usually has a low or zero carbon footprint. They include the following different forms


  • Wind Energy: Onshore and offshore wind farms generate electricity by spinning the blades of wind turbines. The turbines convert the kinetic energy into electric energy which is then connected to a generator to produce electricity.
  • Solar Energy: Solar power is generated by capturing sunlight on solar panels in a joint chemical and physical reaction, known as the ‘photovoltaic effect’ (or PV).
  • Hydraulic or Hydroelectric Energy: It is produced by utilizing the action of falling or streaming water. Dams often have hydroelectric power plants, which produce electricity through underwater turbines that spin a generator.
  • Biomass and Biogas: When organic material (like plants, wood, or food waste) is burned as a fuel source, although the production of bioenergy emits carbon dioxide (CO2), these fuel sources are still regarded as renewable since they can be produced again and absorb the same amount of carbon over the course of their lifetimes.
  • Geothermal Energy- It is produced from the heat that has been absorbed underground or from the heat that has been stored in the Earth. The Earth's core, mantle, and crust all produce and store enormous amounts of thermal energy.
  • Tidal Energy: The rush of ocean waters that occurs during tidal rise and fall is known as tidal energy.
  • Wave Energy: The energy from ocean surface waves is subsequently utilized for a variety of beneficial tasks, such as the production of electricity, the desalination of water, and the pumping of water.
  • Bioethanol: It is made from crops that contain sugar and starch, although the current research is focusing on ethanol made from agricultural and forestry waste due to lower net carbon dioxide emissions.
  • Biodiesel: It is produced from vegetable oils, animal fats, or recycled restaurant grease. The physical characteristics of biodiesel are comparable to those of petroleum diesel.


Current Status of the Renewable Sector in India

Over the years, the renewable energy sector has emerged as a critical industry in the Indian economy, especially affecting the power generation capacity. This thriving scope of green energy has supported the government’s agenda of sustainable development while playing an integral part in meeting the nation’s energy needs. Until October 2022, India had 166 GW of renewable energy capacity, achieving the 5th position in global solar power deployment and the 4th-highest wind-installed capacity in the world. It has generated around 60.1 billion units of wind energy during 2020-21 and has the potential to increase further. In addition, the solar power capacity has increased by more than 11 times in the past five years from 2.6 GW in March 2014 to 30 GW in July 2019.  Currently, the solar tariff in India is very competitive and has achieved grid parity. However, the nation has set a lofty goal to generate 175 GW of renewable energy by the end of 2022, which will increase to 500 GW by 2030. This is the largest expansion strategy for renewable energy in history. The below table represents the cumulative physical progress till 30th November 2022 in India.

India is making impressive progress with a total installed renewable energy capacity of 9,626.79 Megawatts (MW) from April – November 2022 and a cumulative achievement of 119,512.13 Megawatts as of 30th Nov 2022.

Program/Scheme wise Cumulative Physical Progress as of November 2022


FY2022-23 Installed Renewable Energy Capacity (Capacities in MW)

Achievements (April - Nov 2022)

Cumulative Achievements (as of 30.11.2022)

Wind Power



Solar Power



Small Hydro Power



Biomass (Bagasse) Cogeneration



Biomass(non-Bagasse) Cogeneration



Waste to power



waste to Energy (off-grid)









 Source: Ministry of New & Renewable Energy (MNRE)

The below chart represents the comparison of India’s month-wise energy generation from renewable sources from FY2021-22 to FY2022-23:

New Technologies of Green Energy

  • Ocean Energy:  In December 2014, Indian Institute of Technology Chennai conducted research in collaboration with CRISIL Risk and Infrastructure Solutions Limited and estimated that there is a potential for 12,455 MW of tidal power. The Gulf of Khambat, Gulf of Kutch, and southern Gujarat regions are likely to witness low to moderate tidal wave power, as are Palk Bay and Mannar Channel in Tamil Nadu, the Hoogly River, South Haldia, and the Sundarbans in West Bengal. Tidal energy has not been used on a commercial basis in India and is currently in the research and development (R&D) stage. Due to high capital expenses that ranged from US$ 3.62 million (Rs. 30 crores) to US$ 7.25 million (Rs. 60 crores) per MW, early attempts to capture tidal power were unsuccessful.
  • Hydrogen Energy: A comprehensive Research, Development, and Demonstration (R&D) program on hydrogen energy and fuel has been supported by the Ministry of New and Renewable Energy (MNRE). The production of hydrogen from renewable energy sources, its safe and effective storage, and its utilization for energy and transportation purposes through combustion or fuel cells are challenges that are being addressed in industrial, academic, and research institutions. A major transportation-related study has been funded by Mahindra & Mahindra, IIT Delhi, and Banaras Hindu University. As a result, internal combustion engines, two- and three-wheeled vehicles, and hydrogen-fuelled mini-businesses have been developed and put on display. There are now two hydrogen refuelling stations (one each at the Indian Oil R&D Centre, Faridabad, and the National Institute of Solar Energy, Gurugram).
  • Geothermal Energy: The Geological Survey of India has mapped the country's geothermal and geothermal resources (GSI). A rough assessment indicates that the potential for 10 GW of geothermal power exists. The current focus is on developing India's cost-competitive geothermal potential.
  • Energy Storage: Energy storage can play a very important role in grid integration and balancing of variable generation sources. It is possible to improve power quality, lower peak demand, expand the capacity of the distribution and transmission grids, prevent, or lessen deviation penalties, and other benefits by enhancing the system's overall flexibility. When combined with renewable energy, the use of energy storage devices by residential, commercial, and industrial consumers may increase the quality and dependability of their power supply. Additionally, this would make it possible to reduce the amount of diesel used for backup power applications. The push for electric mobility will greatly lessen the nation's reliance on imported fossil fuels and energy storage technologies by adopting indigenous, contemporary, and reliable energy storage.

Key Investment Deals

The investment for FY21-22 is up 125% from FY20-21 and 72% from FY19-20 before the pandemic. However, for India to achieve its goal of 500 GW of renewable energy capacity by 2030, investment in renewables will need to more than double to roughly US$ 30-40 billion per year.

Key investment deals totalled US$ 14.5 billion in FY2021/22 for Indian renewable energy generation. Over 57% of the deals included capital investment to five renewable energy companies - SB Energy, ReNew Power, Vector Green, REC Ltd and AzurePower.

Adani Green Energy Limited (AGEL), Reliance New Energy Solar, (led by ANZ, Credit Agricole, DBS Bank, HSBC, and MUFG), RMG, and Global Power Synergy Public Company (GPSC) contributed 43% of the total investment. Bonds accounted for the largest investment, totalling US$ 4 billion.

Company Name

Deal Type


Deal Value (US$ M)

SB Energy


Adani Green Energy Ltd


Vector Green




REC Solar Holdings


Reliance New Energy Solar


Adani Green Energy Ltd




Reliance Industries (RIL)


ANZ, Credit Agricole, DBS Bank, HSBC, and MUFG


ReNew Power

JV Deal

RMG Acquisition Corporation II (RMG II)


ReNew Power




Indian Railway Finance Corporation (IRFC)




Avaada Energy


Global Power Synergy Public Company (GPSC)


Azure Power




 Source:  Institute for Energy Economics and Financial Analysis (IEEFA)

Flagship Government Initiatives

The Government of India sets a target of 175 Gigawatts (GW) by the year 2022. The target includes 100 GW of solar power, 60 GW of wind power, 10 GW of biomass power, and 5 GW of small hydropower projects (SHP).

National Solar Mission (NSM)

On January 11th, 2010, the National Solar Mission (NSM) was launched. The Government of India launched the National Sustainable Mission (NSM) as a significant project to promote ecological sustainability and address the country's energy security issues. Additionally, India will make a significant contribution to the global effort to address the concerns of climate change. The goal is to position India as a leader in solar energy by establishing the regulatory framework for its rapid dissemination across the nation. By 2022, the mission is to have 100 GW worth of grid-connected solar power plants installed. India's objective is to reach roughly 40% of the installed electric power capacity from non-fossil fuel-based energy resources and to reduce the emission intensity of its GDP by 33 to 35% by 2030, under its Intended Nationally Determined Contributions (INDCs). The Indian government has introduced several programs to promote the use of solar energy in the nation, including the Solar Park Program, Viability Gap Funding (VGF) Programs, Central Public Sector Undertaking (CPSU) Programs, Defence Program, Canal Bank & Canal Top Program, Bundling Program, and Grid Connected Solar Rooftop Program.

National Wind-Solar Hybrid Policy

On May 14, 2018, the Ministry of New and Renewable Energy released the National Wind-Solar Hybrid Policy to increase the production of renewable energy by supporting both new power projects and the hybridization of existing ones. Under this approach, the government will also introduce a program for fresh hybrid projects. The interstate transmission costs and losses for wind and solar projects that will be operational by March 2022 have been waived to enable the interstate selling of wind energy. Guidelines for “Tariff-Based Competitive Bidding Process for Procurement of Power from Grid-Connected Wind Power Projects” were released to provide a framework for the procurement of wind power through a transparent bidding process, including standardization of the process and defining the roles and responsibilities of various stakeholders. These guidelines are designed to make it possible for the distribution of licensees to buy wind energy efficiently and at competitive prices.

Small Hydro Power (SHP) projects

These are environment-friendly small-scale hydro projects (capacity of 25 MW or below) located in remote locations, that lead to the creation of permanent jobs for maintenance and operations for at least 35 to 40 years. The anticipated capacity of India's small hydro plants is 21,135 MW. This benchmark is sufficient to produce enough mechanical and electrical power to satisfy the local demand. Additionally, Micro Hydel Projects (MHP) and Watermills have the potential to meet the power needs of remote areas, assisting the local population in the development of small-scale industries and supporting livelihood projects in sectors like textiles, food processing, handicrafts, and carpet manufacturing. As these projects meet sustainability, availability, and reliability criteria, they can significantly contribute to India's sustainable development and energy security.

National Bioenergy Programme

The program has been assigned a budget of US$ 1.03 billion (Rs. 858 crores) during the period of 1st April 2021 to 31st March 2026. It comprises the following schemes:

  • Waste to Energy Programme (Programme on Energy from Urban, Industrial, and Agricultural Wastes /Residues): To provide funding assistance to project developers, and pay service fees to implementation organizations, such as inspection companies, for commissioning the waste-to-energy facilities.
  • Biomass Programme (Scheme to Support Manufacturing of Briquettes & Pellets and Promotion of Biomass (non-bagasse) based cogeneration in Industries): To encourage the construction of biomass briquette and pellet factories as well as biomass (non-bagasse) based cogeneration projects in the nation's industries. The scheme's more general goals include reducing stubble burning by using surplus agricultural leftovers, giving farmers another source of revenue by selling the surplus residue, and enabling better environmental practices.
  • Biogas Programme: It includes guidelines for building family-style biogas plants to supply biogas as a source of clean cooking fuel and a source of lighting in India's rural and semi-urban areas.

The Road Ahead

India has vowed to achieve net-zero emissions by 2070. To sustain its total economic growth, it must also rapidly expand its energy industry. India must develop a clean energy system with the pillars of dependability, affordability, sustainability, and energy independence while keeping goals and economic considerations in mind. With many options, ensuring the goal and fostering robust economic growth is both a technological and financial issue. Therefore, government policy must continue to encourage innovation, research, and the implementation of green energy projects across all energy distribution paths.