Renewable Energy Industry In India: Present And Future

Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India was ranked fifth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2019.

Installed renewable power generation capacity has gained pace over the past few years, posting a CAGR (Compound annual growth rate) of 17.33% between FY16-20. 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. The government is aiming to achieve 227 GW of renewable energy capacity (including 114 GW of solar capacity addition and 67 GW of wind power capacity) by 2022, more than its 175 GW target as per the Paris Agreement. The government plans to establish renewable energy capacity of 500 GW by 2030.

As of November 30, 2020, the installed renewable energy capacity stood at 90.39 GW, of which solar and wind comprised 36.91 GW and 38.43 GW, respectively. Biomass and small hydro power constituted 10.14 GW and 4.74 GW, respectively. By December 2019, 15100 megawatts (MW) of wind power projects were issued, of which, projects of 12,162.50 MW capacity have already been awarded. Power generation from renewable energy sources in India reached 127.01 billion units (BU) in FY20. With a potential capacity of 363 GW and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.

 KEY ACHIEVEMENTS:

• The cumulative Solar pumps installed for the last 7 years is 246,074.
• Under the Off-Grid and Decentralized Solar Program, more than 74 lakh solar lanterns and study lamps; more than 17 lakh home lights have been distributed.
• More than 6.80 lakh streetlights have been set up in the villages of India and more than 2.46 lakh Solar PV Pumps have been installed in the rural areas for irrigation and drinking water purposes.
• Under the ‘Ladakh Renewable Energy Initiative (LERI)’ implemented by MNRE, the Ladakh Renewable Energy Development Agency (LREDA) has completed the implementation of 500 Commercial Green Houses (CGHs) in the Leh region with a total cost of INR 10.34 cr.
• Solar Energy Corporation of India (SECI) has awarded 1440 MW capacity after e-reverse auction under Solar – Wind Hybrid policy.
• CPSU Scheme Phase II launched with VGF funding with 922 MW awarded under Tranche I and 1104 MW awarded under Tranche II
• 12 biogas-based projects have been commissioned with a power generation capacity of 212 kW and corresponding biogas generation capacity of 1805 m3 per day.
• The total electricity generation from renewable sources in the country in September 2020 was 1,20,273 MU, showing a growth of 3.69%.
• NTPC Ltd is a PSU under the Ministry of Power that has been serving the country for the past 45 years. The current power producing capacity of 62 GW, NTPC plans to become a 130 GW company by the year 2032. For the cleaner source of energy, NTPC plans to achieve 32,000 MW of capacity through renewables or 25% of its overall power portfolio at the beginning of the next decade.
• The total of 406.22 MW of Renewable Energy capacity was added in October 2020, taking the cumulative installed RE capacity to 89.63 GW.

ROAD AHEAD

The Government 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 227 GW by 2022, of which about 114 GW is planned for solar, 67 GW for wind and other for hydro and bio among other. India’s renewable energy sector is expected to attract investment worth US$ 80 billion in the next four years. About 5,000 Compressed Biogas plants will be set up across India by 2023.

It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy as more efficient batteries will be used to store electricity, which will further cut the solar energy cost by 66% as compared to the current cost. Use of renewables in place of coal will save India Rs. 54,000 crores (US$ 8.43 billion) annually. Renewable energy will account for 55% of the total installed power capacity by 2030.

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%.

India is facing an acute energy scarcity which is hampering its industrial growth and economic progress. Setting up of new power plants is inevitably dependent on import of highly volatile fossil fuels. Thus, it is essential to tackle the energy crisis through judicious utilization of abundant the renewable energy resources, such as biomass energy, solar energy, wind energy and geothermal energy. Apart from augmenting the energy supply, renewable resources will help India in mitigating climate change. India is heavily dependent on fossil fuels for its energy needs. Most of the power generation is carried out by coal and mineral oil-based power plants which contribute heavily to greenhouse gases emission.

The average per capita consumption of energy in India is around 500 W (Data-2016), which is much lower than that of developed countries like USA, Europe, Australia, Japan etc. However, this figure is expected to rise sharply due to high economic growth and rapid industrialization. The consumption of electricity is growing on the worldwide basis. Energy is a necessity and sustainable renewable energy is a vital link in industrialization and development of India. A transition from conventional energy systems to those based on renewable resources is necessary to meet the ever-increasing demand for energy and to address environmental concerns.

Sources: India Brand Equity Foundation (IBEF), Make In India, Electrical India