Indian Economy News

Non-fossil fuel sources account for nearly 44% of India’s total installed electricity generation capacity

The Union Minister for New & Renewable Energy and Power has communicated that, in line with the updated Nationally Determined Contributions submitted to the United Nations Framework Convention on Climate Change, the Government of India is committed to achieving 50% non-fossil based installed electricity capacity by 2030. As of October 31, 2023, the country has installed a total of 186.46 GW capacity from non-fossil fuel-based sources, including 178.98 GW from Renewable Energy and 7.48 GW from Nuclear Power. Also, 114.08 GW is under implementation, and 55.13 GW is under tendering, contributing to the share of non-fossil fuel sources reaching 43.82% of India's total installed electricity generation capacity.

Several measures have been taken to promote the development of renewable energy, including allowing Foreign Direct Investment (FDI) up to 100% under the automatic route, waiving Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power until June 30, 2025, and specifying the minimum share of consumption of non-fossil resources by designated consumers. The government has also initiated various schemes such as PM-KUSUM, Solar Rooftop Phase II, and the 12000 MW CPSU Scheme Phase II.

Funds allocated and utilised by the Ministry for 2022-23 and 2023-24 (up to October 31, 2023) are detailed, along with state-wise funds released under major programs. The information also highlights the implementation of various initiatives, such as the Green Energy Corridor Scheme, standards for solar photovoltaic systems, and the National Green Hydrogen Mission. Most utility-scale renewable energy projects in the country are currently undertaken by private sector developers, selected through a transparent bidding process. The Minister provided this information in a written reply to a question in Rajya Sabha on December 5, 2023.

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