Last Updated: June 20, 2018
Last Updated: April, 2018
The Indian renewable energy sector is the second most attractive1 renewable energy market in the world. The country ranks fourth2 in the world in terms of total installed wind power capacity. India added 11.788 GW of power generation capacity from renewable sources between January – November 2017. The focus of Government of India has shifted to clean energy after it ratified the Paris Agreement. With the increased support of government and improved economics, the sector has become attractive from investors perspective. 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.
Total installed renewable energy capacity (including large hydro projects) in India touched 107.81 GW as of February 2018, which is around 32.26 per cent of total energy capacity of the country (334.15 GW).
During December 2017, total installed wind power capacity in the renewables mix* stood at 32.85 GW (52.27 per cent), while solar power capacity was 17.05 GW (27.13 per cent). Total solar capacity in India is expected to be 8 per cent of global solar capacity by 2035.
With a potential capacity of 363 gigawatts (GW) and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.3
According to data released by the Department of Industrial Policy and Promotion (DIPP), FDI inflows in the Indian non-conventional energy sector between April 2000 and December 2017 stood at US$ 6.26 billion.
The Central Electricity Authority (CEA) expects investment in India's power transmission sector to reach Rs 2.6 trillion (US$ 40.3 billion) during the 13th plan (2017-22), and to enhance the transmission capacity of the inter-regional links by 45,700 megawatt (MW).
Some major investments and developments in the Indian renewable energy sector are as follows:
Some initiatives by the Government of India to boost the Indian renewable energy sector are as follows:
The Government of India is committed to increased use of clean energy sources and is already undertaking various large-scale sustainable power projects and promoting green energy heavily. In addition, renewable energy has the potential to create many employment opportunities at all levels, especially in rural areas. The Ministry of New and Renewable Energy (MNRE) has set an ambitious target to set up renewable energy capacities to the tune of 175 GW by 2022 of which about 100 GW is planned for solar, 60 for wind and other for hydro, bio among other. India will need investments of around US$ 125 billion to reach this target.
It is expected that by the year 2040, around 49 per cent of the total electricity will be generated by the renewable energy, as more efficient batteries will be used to store electricity which will further cut the solar energy cost by 66 per cent as compared to the current cost.* Use of renewables in place of coal will save India Rs 54,000 crore (US$ 8.43 billion) annually5.
Exchange Rate Used: INR 1 = US$ 0.015 as on March 04, 2018
References: Media Reports, Press Information Bureau (PIB)
Note: * Capacity from RES is 62.85 GW as of December 2017, 1- According to Renewable Energy Country Attractiveness index by EY; 2- As per data from the Economic Survey; 3- As per the Confederation of Indian Industry's (CII) report titled 'State Renewable Energy Policies: A Comparative Study' ;*According to the Bloomberg New Energy Outlook 2017; ** Data from Venture Intelligence; 4 – as per Greentech Media; 5 – Greenpeace India
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Last Updated: June 20, 2018
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