Renewable energy sector to boom with investments of over US$ 25 billion in 2023
- IBEF
- December 23, 2022
With an oil price shock threatening to derail economies globally, the focus has shifted to renewable energy with over US$ 25 billion (Rs 2 lakh crores) investment planned in India for using sunlight, water, and air to produce energy. As a result, the government in 2022, pushed for the adoption of electric vehicles, the production of green hydrogen, the manufacturing of solar equipment, and energy storage in pursuit of its ambitious 500 GW renewable capacity target by 2030.
In order to achieve this, India would have to add at least 25 GW of renewable energy capacity per annum for eight years continuously to achieve the 500 GW target by 2030. At present, India has around 173 GW of non-fossil fuel-based clean energy capacity which includes 62 GW of solar, 42 GW of wind energy, 10 GW of biomass power, about 5 GW of small hydro, 47 GW of large hydro, and 7 GW of nuclear power capacity.
The government is focussing on green hydrogen with its ‘National Mission on Green Hydrogen’. The bids are expected for the manufacturing of electrolyzers next year which would also bring investment in the clean energy sector. Hydropower projects, being clean, green, and sustainable will be of paramount importance in India's clean energy transition journey, and owing to this, the government is also focussing on harnessing the potential of setting up large hydropower projects in the country. Large hydro has already been given renewable energy status like small hydro which has a capacity of up to 25 MW.
In 2021, the government introduced the production-linked incentive (PLI) with an outlay of US$ 542 million (Rs 4,500 crores) to support and promote the manufacturing of high-efficiency solar photovoltaic (PV) modules. In 2022, the government provided an additional allocation of US$ 2.3 billion (Rs 19,500 crores) to the production-linked incentive (PLI) scheme 'National Programme on High-Efficiency Solar PV Modules'. The bids have already been issued this year and shall be allocated in 2023. Experts have opined that 2023 is positioned to become one of the most crucial milestones in ‘accelerating the energy transition journey’.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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