Indian Renewable Energy Industry Analysis

The Indian renewable energy sector is the second most attractive renewable energy market in the world as per the Renewable Energy Attractiveness Index 2017. India’s installed renewable power generation capacity increased at a Compound Annual Growth Rate (CAGR) of 8.39 per cent from 42.4 gigawatts (GW) in FY2006-07 to 102.9 GW in FY2017-18 (as of July 2017), which is 31.2 per cent of the total installed capacity.

India has the fourth largest installed capacity of wind power and the third largest installed capacity of concentrated solar power (CSP). India added record 11.0 GW of combined wind and solar capacity in 2016-17. Hydro power forms the largest source of energy constituting over 43 per cent of the total renewable power generation installed capacity. India is expected to become the third biggest solar market across the globe in 2017.

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 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.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.