Trade Analytics
Renewable Energy

Renewable Energy Industry in India

Latest update: April, 2018

  • India accounts for approximately 4 per cent of the total global electricity generation and contributes 4.43 per cent to the global renewable generation capacity.
  • 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 February 2018, total renewable1 power generation installed capacity in the country stood at 107.81 GW, which is 32.26 per cent of the total installed capacity of 334.15 GW.
  • A hydro power revival policy is underway which amongst others is likely to include the classification of all hydro power projects as renewable energy
Growth

Notes: RES – Renewable Energy Source; GW – Gigawatt; FY18*- Breakup up to December 2017, 1Large Hydro power projects not included in renewable energy targets of GOI
Source: CEA, International Renewable Energy Agency (IRENA)

  • Power generation from renewable energy sources in India reached 85.65 billion units in FY18 (up to January 2018).
  • The 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 (excluding large hydro projects) 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
  • Solar installation in India is expected to increase 360 per cent by 2020.
  • India witnessed highest ever solar power capacity addition of 5,525.98 MW and 467.11 MW of wind power capacity addition in 2017-181. 15,000 biogas plants were installed during the same time period.
  • About 4.96 million household size biogas plants have been installed in India since the inception of National Biogas and Manure Management Programme (NBMMP).
Growth

Notes: RES – Renewable Energy Source; GW - Gigawatt, CAGR - Compound Annual Growth Rate; FY18* - data up to February 2018, Large Hydro power projects not included in renewable energy targets of GOI
Source: CEA, makeinindia

Last Updated: April, 2018

Introduction

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.

Market Size

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

Investments/ Developments

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:

  • In March 2018, ReNew Power finalised a deal estimated at US$ 1.55 billion to acquire Ostro Energy and make it the largest renewable energy company in India.
  • World’s largest solar park named ‘Shakti Sthala’ was launched in Karnataka in March 2018 with an investment of Rs 16,500 crore (US$ 2.55 billion).
  • Solar sector in India received investments of over US$ 10 billion in CY 2017.
  • Private Equity (PE) investments in India's wind and solar power have increased by 47 per cent in 2017 (January 1 to September 25) to US$ 920 million, across nine deals, as compared to US$ 630 million coming from 10 deals during the corresponding period in 2016**.
  • Adani Group from India was ranked as the 12th largest utility solar power developer in the world4 in January 2018.
  • NLC India Ltd commissioned its 130 MW solar power project in Tamil Nadu in January 2018.
  • In December 2017, IL&FS Financial Services Ltd partnered with Jammu and Kashmir (J&K) Bank Ltd to finance nine hydropower projects in J&K with a total capacity of 2,000 MW, which require financing of around Rs 20,000 crore (US$ 3.12 billion).
  • The Asian Development Bank (ADB) and the Punjab National Bank (PNB) have signed a financing loan worth US$ 100 million, which will be used to support solar rooftop projects on commercial and industrial buildings across India.

Government initiatives

Some initiatives by the Government of India to boost the Indian renewable energy sector are as follows:

  • In December 2017, a new policy was released for testing, standardisation and certification of products used in the renewable energy sector to address quality issues and develop standards as per international practices.
  • Around 4.96 million household size biogas plants were installed in the country under the National Biogas and Manure Management Programme (NBMMP) by 2016-17 end.
  • The Government of India has announced plans to implement a US$ 238 million National Mission on advanced ultra-supercritical technologies for cleaner coal utilisation.
  • The Ministry of New and Renewable Energy (MNRE) has decided to provide custom and excise duty benefits to the solar rooftop sector, which in turn will lower the cost of setting up as well as generate power, thus boosting growth.
  • The Indian Railways is taking increased efforts through sustained energy efficient measures and maximum use of clean fuel to cut down emission level by 33 per cent by 2030.
  • The Union Cabinet has approved raising of bonds worth Rs 2,360 crore (US$ 366.2 million) by the Indian Renewable Energy Development Agency (IREDA), which will be used in various renewable energy projects in FY 2017-18.
  • The Union Cabinet has approved construction of 10 units of indigenous Pressurized Heavy Water Reactors (PHWR), with a nuclear capacity of 700 MW each, which is expected to bring substantial economies of scale and maximise cost and time efficiencies, and thereby boost India’s nuclear industry.

Road Ahead

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.

Renewable Energy India

 
Auto Components Clusters in India
 

 

Posters

Brand India Pharma

RENEWABLE ENERGY

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

India: Pushing The Right Levers


English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_logo-ibef1.jpg India: The land of technology-led start-ups!
IBEF, Knowledge Centre

The Indian technology start-up domain is proudly placed at the fourth largest position in the world. The industry was sized at US$ 35 billion in FY18. Last decade saw eme...

author_logo-ibef1.jpg India: Weaving million success stories!
IBEF, Knowledge Centre

Textiles have been one of the oldest and largest industries in India historically, second only to agriculture, and it generates jobs for millions of people. The current e...

author_Varun-Aggarwal-headshot1.jpg Leading science and technology: The opportunity and the challenges for India
Varun Aggarwal, co-founder and Head of Research, Aspiring Minds | Author of 'India Next'

Today is the most opportune time for India to revolutionise its science and technology ecosystem. The size of our economy provides the capital, manpower and market to inv...

author_Erich-Nesselhauf-MD-CEO-DICV1.JPG "We always firmly believed in the Make in India initiative. We're probably one of the most successful poster examples..."
Erich Nesselhauf, MD & CEO - Daimler India Commercial Vehicles

Daimler India Commercial Vehicle has been able to create a space for its offerings in the already crowded domestic commercial vehicle market. Erich Nesselhauf, MD & C...

author_GhanshyamLalVyas1.jpg Expanding horizons - Making it easier for Indian exporters to reach new markets!
Ghanshyam Lal Vyas, General Manager-Government Inspections and International Trade, TUV Rheinland India

TUV Rheinland India is a subsidiary of the TUV Rheinland Group, Germany. As part of the India, Middle East, Africa & Asia Pacific Group, it caters to the Indian marke...

author_logo-ibef1.jpg India hosts Informal WTO Ministerial Meeting
IBEF, Knowledge Centre

India hosted the Informal WTO Ministerial Meeting is being held in New Delhi on 19-20 March 2018. India is one of the founding Members of the World Trade Organization. Th...

ideas More

Ideas

Cutlery You Can Eat
Narayana Peesapaty, a former researcher at the International Water Management Institute of Hyderabad, has created an innovative edible cutlery, mainly made out of sorghum....

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password