India’s Renewable Energy Capacity Surge in 10 Years

August 10, 2024

General Studies Paper-3

Context: Recently, the Union Minister informed that India’s installed renewable energy capacity has increased by 165% over the past decade, rising from 76.38 Gigawatts (GW) in 2014 to 203.1 GW in 2024.

Key Facts

Solar Power: Back in March 2014, Solar power generation was 2.82 GW, and it is around 85.47 GW of solar power in June 2024. That’s nearly 30 times the original capacity.
- India achieved 4th position globally in RE (Renewable Energy) Installed Capacity.
Wind Power: Wind turbines have been spinning their way to success too. It has surged from 21.04 GW to a breezy 46.66 GW in the same period.
- India achieved 5th position globally in it.

Non-Fossil Fuel

For the first time ever, India has surpassed the 200 GW mark from non-fossil fuel sources. It includes:
47 GW of solar power
93 GW of large hydro
66 GW of wind power
95 GW of biopower
00 GW of small hydropower

Budget and Tariff

The budgetary allocation for the Ministry of Renewable Energy has doubled from Rs10,000 crores last year to more than Rs20,000 crores this year.
Solar power tariffs have gone from Rs. 10.95 per unit in 2010-11 to a mere Rs. 2.60 in 2023-24.

India Towards a Greener Future

v India aims to reach a non-fossil fuel energy capacity of 500 GW by 2030 and fulfil at least half of its energy requirements via renewable energy by 2030 at the COP26.

v To achieve this ambitious target, the MNRE is targeting the bidding of around 50 GW of renewable energy projects per annum.

v It is a significant increase from the previous target of 450 GW.

v The plan involves an investment of at least ₹2.44 lakh crore or ₹2.44 trillion.

v India’s renewable energy sector has the potential to employ around one million people by 2030, and most of the new jobs would be generated by small-scale renewable energy projects.

Challenges Faced by the Renewable Energy Sector in India

Financial Health of Power Distribution Companies (DISCOMs): The poor financial condition of power distribution companies (discoms), which are mostly owned by state governments.
- Almost all renewable energy is purchased by such discoms, resulting in very long and unsustainable payment cycles.
Land Utilisation and Availability: Issues such as lack of a proper Land Utilisation Policy, poorly maintained land records, land ceiling limits, and the task of obtaining permissions from local bodies act as roadblocks to the implementation of large-scale renewable energy projects.
Rapid Demand Growth and Chronic Supply Shortages: India currently experiences a significant increase in energy demand driven by rapid economic growth, which necessitates a shift away from fossil fuels.
- However, fossil fuels still dominate global energy consumption, continuing to raise GHG emission levels.

Government Efforts in India’s Renewable Energy Sector

Permitting FDI: India has permitted FDI up to 100% under the automatic route to attract foreign investments.
Waiver of Inter State Transmission System (ISTS) charges: For inter-state sale of solar and wind power for projects, ISTS charges have been waived off.
Major Renewable Energy Schemes and Programmes:
- Scheme for Development of Solar Parks and Ultra-mega Solar Power Projects;
- Central Public Sector Undertaking (CPSU) Scheme Phase-II;
- Production Linked Incentive (PLI) Scheme ‘National Programme on High Efficiency Solar PV Modules’;
- PM-KUSUM Scheme;
- Rooftop Solar Programme Phase II;
- Green Energy Corridors (GEC), and;
- Bio-Energy Programme.
Increasing Awareness: Efforts have been made by the Government to increase awareness about the use of renewable energy through introduction of various schemes and publicity through print and media.

Conclusion

India’s record addition of renewable energy capacity in FY24 is a testament to the country’s commitment to a sustainable and green future.
As the world grapples with the challenges of climate change, India’s strides in renewable energy offer a beacon of hope and a model for other countries to follow.