As a part of its Paris Agreement commitments, India has set an ambitious target of achieving 175 GW of renewable energy capacity by 2022. Going by the Renewable Energy progress in India, it is expected that India will overachieve its Paris Agreement targets.
India gets about 300 days of sunlight in a year and has a large hydro power potential which is being explored in the north-eastern states of the country. Renewable energy in India – an ambitious portfolio of 100 GW of solar power and 60 GW wind power – are expected to help meet 40 per cent of India’s total power requirement by 2030.
Under MNRE’s Solar Cities programme, 60 solar cities are proposed to be developed across the country. The large integrated players are better placed than the smaller contractors.
India has already added a record 11,788 MW of renewable energy capacity in 2017-18. Installed renewable power generation capacity has increased steadily over the years, posting a compounded annual growth rate (CAGR) of 9.29 per cent over FY 08–18. During April-July of this FY, renewable energy sector witnessed a capacity addition of 1832.26 MW. Net renewable capacity addition in this financial year is estimated to be 8500 MW.
India ranks fourth in EY Renewable Energy Country Attractive Index 2018, fourth in the world in terms of total installed wind power capacity, and fifth in terms of cumulative installed solar capacity
as of August 2018.
The country produces nearly four per cent of the total global electricity and contributes 4.43 per cent to the global renewable generation capacity.
With the falling cost of renewables strengthening the business case for investing, India’s renewable energy sector has, thus, become one the major attractions for foreign investors. In total, this sector has drawn $6.84 billion FDI from April 2000 to June 2018.
A report by Indian Brand Equity Foundation (IBEF), after interpreting figures from the Ministry of New & Renewable Energy (MNRE) and Central Electricity Authority (CEA) shows that more than $42 billion of investment is in the country’s renewable energy sector since 2014.
By 2022, the renewable energy sector is projected to attract further investments at about $80 billion. Here the competition has heated up especially in the solar power segment. Tenders in tariffs have already seen record low of Rs 2.44 per unit in December 2017.
The Union Power and New & Renewable Energy Minister R K Singh has stated that India is ready to share its expertise in renewable energy with small island nations.
“India has chosen the path of sustainable growth and we want to leave a green planet for our future generations. That is why our focus is on renewable energy. We are aiming for 100 per cent renewable energy in Andaman & Nicobar and Lakshadweep and India is ready to share expertise among other small island Nations, said Singh in a statement.
As a responsible Nation India has committed to increase share of non-fossil fuel based electric power generation upto 40 per cent by 2030.
“India has already achieved over 33 per cent share of non-fossil fuels in the electric installed capacity and is likely to achieve this target much ahead of the deadline. Focused approach and ambitious aims will make India a world leader in the field of renewable energy”, observed the Minister.
As renewable energy costs continue to fall globally, and business leaders are becoming ever more aware of the risks of the traditional fossil fuel business model, it’s clear that renewable power is the future for global business.