India’s renewable energy sector is poised for significant growth, with projections indicating that the country’s installed renewable energy capacity will reach approximately 170 gigawatts (GW) by March 2025.
This marks a substantial increase from the 135 GW recorded in December 2023, reflecting the government’s commitment to expanding clean energy infrastructure.​ The anticipated growth is underpinned by several key factors. A notable decline in the prices of solar photovoltaic (PV) cells and modules—by 65% and 50%, respectively—has made solar power projects more financially viable. Additionally, policy measures such as the extension of timelines for solar and hybrid projects and the suspension of the Approved List of Models and Manufacturers (ALMM) order until March 2024 have further facilitated project development. These developments are expected to contribute to an increase in renewable energy capacity addition to 20 GW in fiscal year 2024, up from 15 GW in the previous fiscal year. ​
Looking ahead, the government has set an ambitious target of achieving 500 GW of non-fossil-based electricity generation by 2030, as announced at the COP26 summit. To support this goal, a comprehensive plan involving an investment of approximately ₹9.22 lakh crore (US$109.5 billion) is underway to enhance power infrastructure, meet the projected demand of 458 GW by 2032, and integrate renewable energy sources. This plan also aims to bolster energy security and unlock untapped potential in the sector. ​ In addition to solar power, other renewable energy sources are also witnessing growth. The government has approved over ₹908 crore (US$106.7 million) for advanced bioethanol projects under the Pradhan Mantri Jaiv Indhan – Vatavaran Anukool Fasal Awashesh Nivaran (PM JI-VAN) Yojana. These projects aim to utilize renewable feedstocks for bioethanol production, with commercial-scale initiatives already underway in Panipat, Haryana.
Despite these advancements, challenges remain. The intermittency associated with renewable energy generation necessitates the development of round-the-clock (RTC) power solutions. To address this, upcoming tenders are expected to include a higher proportion of RTC projects, which combine solar and wind power with energy storage systems to ensure a stable power supply. While the renewable energy sector is experiencing growth, it is important to note that coal-fired power generation continues to play a significant role in India’s energy mix. Recent reports indicate that Indian firms are showing renewed interest in developing coal-fired power projects, with plans to add over 10 GW of capacity. This trend underscores the ongoing reliance on coal for meeting energy demands, despite the push towards cleaner energy sources. ​
In conclusion, India’s renewable energy sector is on a robust growth trajectory, with substantial investments and policy support driving capacity expansion. However, balancing the integration of renewable energy with the continued use of coal presents a complex challenge that requires careful planning and execution. The government’s commitment to achieving its renewable energy targets will be crucial in shaping the future of India’s energy landscape.
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