Trade Analytics
Renewable Energy

Indian Renewable Energy Industry Analysis

Latest update: February, 2018

  • India accounts for approximately 4% of the total global electricity generation and contributes 4.43 per cent to the global renewable generation capacity amounting to 2,011 GW in 2016
  • The International Energy Agency’s World Energy Outlook projects a growth of renewable energy supply to 4,550 GW in 2040 on a global basis.
  • As of July 2017, total renewable power generation installed capacity in the country stood at 103.92 GW, which is 31.2 per cent of the total installed capacity
  • Hydro power forms the largest source of energy constituting over 43 per cent of the total renewable power generation installed capacity
  • A hydro power revival policy is in underway which amongst others is likely to include the classification of all hydro power projects as renewable energy

Note: GW - Gigawatt
Source: CEA, International Renewable Energy Agency (IRENA)

  • Among the different sources of renewable power in India, the CAGR in installed capacity over FY07–*FY18 was
  • 2.32 per cent for hydro power
  • 20.12 per cent for other renewable energy sources, supported by the commencement of solar capacity addition since 2012
  • The Government of India is projecting a rapid 17.04% CAGR increase in other RES installed capacity to 275 GW by 2027 supported by a surge in solar power capacity addition.

Notes: CAGR - Compound Annual Growth Rate, GW - Gigawatt
Source: CEA, India Solar Handbook 2017



Last Updated: February, 2018

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 (including hydropower) increased at a Compound Annual Growth Rate (CAGR) of 8.39 per cent from 42.4 gigawatts (GW) in FY2006-07 to 107.81 GW in FY18 (as of January 2018), which is 31.77 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 witnessed highest ever solar power capacity addition of 5,525.98 MW and 467.11 MW of wind power capacity addition in 2017-18 (up to November 2017). 15,000 biogas plants were installed during the same time period. Off-grid power equivalent to 168.87 MW was added in the country during January – November 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. Under Union Budget 2018-19, Rs 3,762 crore (US$ 581.09 million) has been allocated for grid-interactive renewable energy schemes and projects

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. The non-conventional energy sector has received a total FDI equity inflow of US$ 6.26 billion during April 2000 to December 2017.

Sectoral Presentation (February, 2018)

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