India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020. India ranked third in EY Renewable Energy Country Attractive Index. Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 17.33% between FY14-FY20. Power generation from renewable energy sources in India reached 127.01 billion units (BU) in FY20. The renewable energy will account for 55% of the total installed power capacity by 2030.
As of July 2021, India had 96.96 GW of renewable energy capacity, and represents 25.2% of the overall installed power capacity, providing a great opportunity for the expansion of green data centres. The country is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030 – about 280 GW (over 60%) is expected from solar.
Installed renewable power-generation capacity has increased at a fast pace over the past few years, posting a CAGR of 15.51% between FY16 and FY21. India had 94.4 GW of renewable energy capacity in FY21.
According to the year-end review (2020) by the Ministry of New and Renewable Energy, another 49.59 GW of renewable energy capacity is under installation and an additional 27.41 GW of capacity has been tendered. This puts the total capacity of renewable energy projects (already commissioned or in the pipeline) at ~167 GW.
The Government of India wants to develop a ‘green city’ in every state of the country, powered by renewable energy. The ‘green city’ will mainstream environment-friendly power through solar rooftop systems on all its houses, solar parks on the city’s outskirts, waste to energy plants and electric mobility-enabled public transport systems.
The Ministry of New and Renewable Energy, under the supervision of the Government of India, has outlined an action plan to achieve a total capacity of 60 GW from hydro power and 227 GW from other RES by March 2022; this includes 114 GW from solar power, 67 GW from wind power, 10 GW from biomass power and 5 GW from small hydro power. Government plans to establish renewable energy capacity of 523 GW (including 73 GW from Hydro) by 2030. This is proving to be the major thrust for the sector as the market players have enough incentive to move to clean source. The Government is aiming to achieve 225 GW of renewable energy capacity by 2022, much ahead of its target of 175 GW as per the Paris Agreement. In the Union Budget 2021-22, Ministry for New and Renewable Energy was allocated Rs. 5,753 crore (US$ 788.45 million). Under Union Budget 2021-22, the government has provided an additional capital infusion of Rs. 1,000 crore (US$ 137.04 million) to Solar Energy Corporation of India (SECI) and Rs. 1,500 crore (US$ 205.57 million) to Indian Renewable Energy Development Agency.
According to data from the Ministry of Power, India's power consumption increased by 12% in July to 125.51 billion units (BU) and recovered to pre-pandemic levels, owing to easing of COVID-19-induced restrictions and delayed monsoon.
In July 2021, installed capacity of hydro projects in India reached to 46.3 GW, while capacity of small hydro plants reached to 4.8 GW.
In March 2021, the Union Cabinet approved a Memorandum of Understanding (MoU) in the field of renewable energy cooperation between India and the French Republic.
In May 2021, India added 2,105 megawatt (MW) of grid-connected solar power generation capacity in the first quarter (Q1) of 2021.
In March 2021, Haryana announced a scheme with a 40% subsidy for a 3 KW plant in homes, in accordance with the Ministry of New and Renewable Energy's guidelines, to encourage solar energy in the state. For solar systems of 4-10 KW, a 20% subsidy would be available for installation from specified companies.
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% of India’s power needs.
In June 2021, Prime Minister Mr. Narendra Modi stated that renewable energy capacity in India increased by 250% between 2014 and 2021 and the country ranks among the top five globally in terms of installed renewable energy capacity.
The renewable energy space in India has become highly attractive for investors and received FDI inflow of US$ 10.02 billion between April 2000 and March 2021. According to the analytics firm British Business Energy, India ranked 3rd globally in terms of its renewable energy investments and plans in 2020.
As per the Central Electricity Authority (CEA) estimates, by 2029-30, the share of renewable energy generation would increase from 18% to 44%, while that of thermal is expected to reduce from 78% to 52%.
In July 2021, the Ministry of New and Renewable Energy (MNRE) gave the go ahead to NTPC Renewable Energy Ltd., a 100% subsidiary of NTPC, to build a 4,750 MW renewable energy park at the Rann of Kutch in Khavada, Gujarat. This will be India's largest solar park to be developed by the country's leading power producer.
The Nathpa Jhakri Hydro Electricity Station of Satluj Jal Vidyut Nigam (SJVN) set a new monthly power generation record, increasing from 1,213.10 million units to 1,216.56 million units on July 31, 2021.
In June 2021, Indian Renewable Energy Development Agency Ltd. (IREDA) has invited bids from solar module manufacturers for setting up solar manufacturing units under the central government’s Rs. 4,500 crore (US$ 616.76 million) Production Linked Incentive (PLI) scheme.
In June 2021, Suzlon secured a contract for 252 MW wind power project from CLP India. The project is expected to be commissioned in 2022.
In June 2021, Tata Power Solar secured a contract worth Rs. 686 crore (US$ 93.58 million) from the NTPC to build 210 MW projects in Gujarat.
In June 2021, the Competition Commission of India (CCI) approved ReNew Power to exchange equity shareholding by its existing shareholders with shares of ReNew Global. Along with this, the CCI also approved a reverse triangular merger of ReNew Global’s subsidiary with RMG II.
In April 2021, Coal India Ltd (CIL) announced the purchase of 100 Megawatt (MW) solar power from Gujarat Urja Vikas Nigam (GUVNL).
In April 2021, Central Electricity Authority approved the uprating of JSW Energy Karcham Wangtoo hydro power plant to 1,091 megawatt (MW) from 1,000 MW.
In March 2021, Edelweiss Infrastructure Yield Plus (EIYP), an alternative investment fund managed by Edelweiss Alternative Asset Advisors, acquired a 74% stake in the solar portfolio of Engie Group in India.
In March 2021, the US Agency for International Development (USAID) and the US International Development Finance Corporation (DFC) reported a loan guarantee programme worth US$ 41 million to support Indian SME investments in renewable energy.
In March 2021, JICA (Japan International Cooperation Agency) entered a loan agreement with Tata Cleantech Capital Limited (TCCL) for JPY 10 billion (US$ 90.31 million) to enable the firm provide loans to companies in India for renewable energy production, e-mobility solutions and energy conservation in order to help offset the effects of climate change by reducing greenhouse gas (GHG) emissions (in line with the Green Loan Principles).
Click to access the Renewable Energy Industry Archived Report
Overview – MSMEs Sector in India
Micro, Small and Medium Enterpri...
The Reserve Bank of India defines FDI as purchase of 10% ...
In 2018, the Indian government announced plans to develop ...
In India, the use of drones has been gradually rising in various applications, especially in no...
With India moving towards digitisation and services becom...
Over the last decade, India has emerged as a popular tourist d...