India Surpasses 200 GW Renewable Energy Capacity Milestone

In October, India reached a historic milestone in its renewable energy journey, crossing the 200 GW mark with an installed capacity of 203.18 GW. This achievement represents more than 40% of its ambitious target of 500 GW of non-fossil fuel power generation capacity by 2030 and aligns with the nation’s net-zero carbon emissions commitment for 2070.

The past year alone saw India add an impressive 24.2 GW of renewable energy capacity, underscoring the country’s growing leadership in the global energy transition.

Driving Renewable Energy with Visionary Policies

Ashwin Jacob, energy leader at Deloitte India, highlighted the remarkable progress:
“2024 has been a transformative year for India’s energy transition, driven by collaborative efforts between the government and industry. Solar capacity alone has grown by 30% over 2023, supported by increased policy focus and budget allocations for solar projects.”

A standout initiative has been the PM Surya Ghar: Muft Bijli Yojana, a revitalized rooftop solar scheme aimed at installing solar panels on 10 million households by 2027. With a significant budget of ₹75,021 crore, the scheme has already facilitated 685,763 rooftop solar installations, accelerating India’s energy independence goals.

Additionally, the government approved viability gap funding (VGF) for offshore wind energy projects, with a total allocation of ₹7,453 crore. These efforts are expected to further diversify India’s renewable energy mix.

Surge in Investments and Emerging Opportunities

India’s renewable energy sector continues to attract substantial investments, exceeding $25 billion annually, according to Srivatsan Iyer, CEO of Hero Future Energies. The adoption of corporate power purchase agreements (PPAs) is rapidly increasing, with projections of surpassing 8 GW annually by 2025.

While PPAs for utility-scale projects still face delays, efforts are underway to streamline processes. A single-window clearance system and standardized templates for agreements are being developed to ensure faster approvals.

Green Energy Revolution: IPOs, Hydrogen, and Beyond

The year witnessed a wave of initial public offerings (IPOs) from green energy companies like ACME Solar Holdings Ltd and Waaree Energies Ltd, reflecting investor confidence. The government has also ramped up funding for nuclear energy, allocating ₹1 trillion for research in small modular reactors (SMRs) and paving the way for private sector participation in this strategic sector.

Green hydrogen is another promising avenue. With a ₹17,490-crore boost under the SIGHT scheme, India is positioning itself as a future hub for green hydrogen and its derivatives like green ammonia. Major players like ReNew Power and Avaada Group have already entered offtake agreements, signaling early momentum.

Battery Storage and Recycling: The Next Frontier

The demand for battery energy storage is surging, driven by falling costs and the integration of storage in solar tenders. India’s cumulative storage potential is projected to reach 240 GWh by 2032, according to the India Energy Storage Alliance.

Simultaneously, the focus on battery recycling is gaining traction. India currently meets its 15 GWh lithium-ion battery demand entirely through imports, presenting a significant opportunity to scale domestic recycling capacity.

A Sustainable Future Beckons

India’s strides in renewable energy underscore its commitment to sustainability and economic transformation. As Manoj Bansal of Grant Thornton Bharat aptly stated:
“Emerging areas like green hydrogen, energy storage, and electric mobility are not just energy solutions—they are pillars of a new, sustainable economy.”

With visionary policies, robust investments, and growing public-private partnerships, India is well on its way to achieving its 500 GW renewable energy capacity target. The nation’s leadership in the global energy transition serves as a blueprint for sustainable growth in the years to come.

Also Read:India’s Global Performance 2024: Examining Rankings in Key Global Indices