Renewable Energy in India

The entire world economy has grown up as a fossil fuels-based economy and yet fossil fuels are at the core of the
climate change crisis…We must undertake a kind of ‘heart transplant’ replacing the beating heart of fossil fuel
energy with an alternative based on low-carbon energy!"

----------------------------------------------------------------The Age of Sustainable Development by Jeffrey D. Sachs

The corona pandemic has bought immense disruption to our world, destroying lives and livelihoods. It also
reminds us that some challenges exist, that cannot be tackled alone.

Limiting the spread of virus has required everyone to act collectively to make life safer for all of us. This holds true
for the other greater crises the world faces—untamed level of green house gas emissions that are already bringing
havoc.

The good news is we already have reliable technologies at our disposal that can curb the carbon emissions and
start the drive down to net zero. The spectacular rise of renewable energy technologies in recent years has shown
us what is possible. Deployed quickly and on a major scale, the clean energy technologies can bring about the kind
of decline in energy-related emissions that could put the world on track for our long-term climate goals.

India renewable energy sector is the fourth most attractive renewable energy market in the world1. Installed
renewable power generation capacity in India has gained pace over the last few years, posting a CAGR of 17.33%
between FY 16-20. As India looks to meet her 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 govt. is aiming to achieve 227 GW of renewable
energy capacity by 2022, more than its 175 GW target as per the Paris agreement.

Market Size
As of February 2021, installed renewable energy capacity stood at 92.97 GW, while 50.15 GW is currently being
implemented in various phases. By December 2019, 15,100 MW of wind power projects were issued, of which,
projects of 12,162.50 MW capacity have already been awarded2. Power generation from renewable energy
sources in India reached 127.01 billion units in FY20.

Investment/Developments
According to data released by Dept. for promotion of Industry and Internal Trade (DPIIT), FDI flow in the Indian
non-conventional energy sector stood at US$ 9.83 billion between April 2020 and December 2020. More than US$
42 billion has been invested in India’s renewable energy sector since 2014. According to the analytics firm British
Business Energy, India ranked 3rd globally in terms of its renewable energy investments and plans in 2020.

1
According to Renewable Energy Country Attractiveness Index 2018 by EY.
2
According to Bloomberg New Energy Outlook 2018.
References:
1. Newsroom Posts of IPCC
2. Meeting Coverage and Press Releases of UN
Road Ahead
India has all ingredients for exerting leadership. The prime drivers are poverty alleviation and universal energy
access. Scaling up energy is the recipe for solving both the challenges. Since 2015, the number of people working in
renewable energy in India has increased fivefold. India has also made significant progress towards universal access
to electricity. In India, 50% of coal will be uncompetitive in 2022, reaching 85% by 2025. This is why the world’s
largest investors are increasingly abandoning coal.

The advantages of India’s renewable energy are- low cost, protected from volatile commodities market, offer 3
times the job potential of fossil fuel power plants and they can improve air quality at a time when our cities are
literally choking.

The govt. is committed to increased use of clean energy sources and is already undertaking large scale sustainable
power projects. The MNRE has set an ambitious target to set up renewable energy capacities to the tune of 227
GW by 2022.

There are several other factors mentioned below which indicate positive intention of govt. towards renewable
energy to achieve its climate change goals3-

1. Robust Demand- As economy grows, electricity consumption is projected to reach 15,280 TWH. Most of
the demand will come from real estate and transport sectors. Per-capita electricity consumption in India
reached 1208 units in 2019-20.
2. Competitive Advantage- India ranked 7th on the EY Renewable Energy Country Attractive Index 2020.
3. Policy Support- The Ministry of Power released the draft national electricity policy (NEP) 2021 and has
invited suggestions from all stakeholders.
4. Increasing Investment- In March 2021, Actis announced to invest US$ 850 million in India to develop 2
renewable energy platforms, one for grid connected solar and wind power parks and the other for
commercial and industrial (C&I) market.

So, energy is at the heart of the solution to the climate change. Lately every stakeholders have realized the same
due to which the investments and policies are so aggressive to achieve SDG-7 targets. Indian Govt. focus too seems
very well aligned and targeted to achieve her climate change goals, and our govt. have also received accolades in
international platforms regarding its stance towards clean energy development.

3
Indian Renewable Energy Industry Report (March 2021)