Introduction
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:
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 |
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 |
||
Sector |
FY2022-23 Installed Renewable Energy Capacity (Capacities in MW) |
|
Achievements (April - Nov 2022) |
Cumulative Achievements (as of 30.11.2022) |
|
Wind Power |
1,537.70 |
41,895.28 |
Solar Power |
7,969.85 |
61,966.36 |
Small Hydro Power |
75.75 |
4,924.65 |
Biomass (Bagasse) Cogeneration |
0.00 |
9,433.56 |
Biomass(non-Bagasse) Cogeneration |
0.00 |
772.05 |
Waste to power |
25.00 |
248.14 |
waste to Energy (off-grid) |
18.49 |
272.09 |
|
|
|
Total |
9,626.79 |
119,512.13 |
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
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 |
Acquirer/Investor |
Deal Value (US$ M) |
SB Energy |
Acquisition |
Adani Green Energy Ltd |
3,500 |
Vector Green |
Bond |
1,031 |
|
REC Solar Holdings |
Acquisition |
Reliance New Energy Solar |
771 |
Adani Green Energy Ltd |
Bond |
750 |
|
Reliance Industries (RIL) |
Debt |
ANZ, Credit Agricole, DBS Bank, HSBC, and MUFG |
736 |
ReNew Power |
JV Deal |
RMG Acquisition Corporation II (RMG II) |
610 |
ReNew Power |
Bond |
585 |
|
Indian Railway Finance Corporation (IRFC) |
Bond |
500 |
|
Avaada Energy |
Equity |
Global Power Synergy Public Company (GPSC) |
453 |
Azure Power |
Bond |
414 |
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:
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.