India’s Renewable Energy Landscape For FY24
4PEL Staff
May 2023
India is a leader in renewable energy, with installed capacity of 147 GW making it the fourth-leading nation worldwide. Despite being dominated by thermal energy, India has significant clean energy resources waiting to be optimized.
Renewable energy sources accounted for almost double the electricity production in 2021 as compared to 2011, and India is committed to aggressively increasing its renewable energy capacity.
In FY24, RE adoption, especially by the corporate sector, is expected to increase. A recent BTI report shows that major Indian corporations are actively involved in decarbonization initiatives, with 46 companies already committed to climate goals, including net-zero carbon or GHG targets.
INDIA’s RENEWABLE ENERGY MIX
According to the Ministry of New and Renewable Energy (MNRE), out of a total installed capacity of 120.8 GW for renewable energy as of December 31, 2022, India had more than 63.3 GW of solar power and 41.89 GW of wind power. Of the nation's overall renewable energy capacity, solar accounted for 52%.
5 KEY CLEAN ENERGY DEVELOPMENTS TO WATCH OUT FOR IN FY24
- 1. SOLAR ENERGY
India's solar energy sector has significantly grown in recent years and is expected to experience further growth in FY24. Factors like solar module pricing, ALMM, supply chain consistency, and policy on net-metering will determine the pace of renewable energy adoption in rooftop solar.
Stable policies in line with the Centre's Green Energy Open Access norms will be crucial to facilitate growth in Open Access. The country's ambitious target of developing 500 GW of renewable energy capacity by 2030 will require an investment of at least ₹2.44 lakh crore, with solar energy accounting for almost 50% of the increase in capacity.
- 2. WIND ENERGY
Wind energy sector has seen slower growth compared to solar energy adoption in recent years, despite the Ministry of New and Renewable Energy's target of 60 GW installed wind capacity by 2022. However, to accelerate the growth of wind energy adoption, the government is providing financial incentives such as accelerated depreciation, concessional customs duty, and tax holidays.
The Indian Wind Turbine Manufacturers Association predicts up to 30% growth in the sector in FY24.
- 3. GREEN HYDROGEN
In FY24, we can expect to see increased investments in green hydrogen technology and infrastructure, which could play a significant role in reducing India's dependence on fossil fuels.
India's National Hydrogen Mission aims to produce green hydrogen from renewable sources and establish green hydrogen plants with a total capacity of 10 GW by 2030.
- 4. ENERGY STORAGE
Energy storage is a crucial component of the renewable energy mix, allowing for the integration of variable renewable energy sources like wind and solar.
India's energy storage market is set to grow significantly in FY24, with a focus on grid-scale solutions like pumped hydro, battery, and compressed air storage. To integrate 500GW of non-fossil fuel energy by 2030, at least 160GWh of energy storage is needed, according to the India Energy Storage Alliance (IESA).
- 5. ELECTRIC VEHICLES
The EV market is rapidly growing, but challenges such as infrastructure, range anxiety, and lack of awareness need to be addressed. Sales of EVs in India grew by 138% in FY21.
In FY24, we can expect to see increased investments in EV infrastructure and adoption in the commercial vehicle segment. This could have a significant impact on India's transportation sector and reduce its dependence on fossil fuels.
EXCITING PHASE OF INDIA’s RENEWABLES JOURNEY IS UNDERWAY
We anticipate that the upcoming years will be critical for India's efforts to reduce carbon emissions. With renewable energy sources already accounting for more than 42% of primary energy consumption, the year FY24 is poised to be a game-changer for solar, wind, green hydrogen, energy storage, and electric vehicles. This transformative period presents a significant opportunity for India to accelerate its transition to a sustainable, low-carbon economy. India is committed to meeting its Climate Action targets and is increasing accessibility and affordability of renewable energy.
Country's adoption of innovative technologies will also pave the way for a more sustainable future and position the country as a leader in renewable energy
FOURTH PARTNER ENERGY’S OPEN ACCESS SOLAR & WIND ENERGY FOOTPRINT
Fourth Partner Energy is India’s leading Renewable Energy solutions company – with a vast network of Solar, Wind and Hybrid parks across the country. When it comes to offsite solar and wind energy, 4PEL has over 900 MW of installed capacity and is the ideal partner of choice for your business to switch to renewable energy. Alongside this, we have over 450 MW of rooftop solar assets as well.
For businesses with bulk energy requirement pan-India, we now offer offsite solutions via ISTS (Inter State Transmission System) as well. To know how our clean energy solutions can help your business save on costs, while cutting down your Carbon footprint, write to us on marketing@fourthpartner.co or chat real-time with our RE agents on our website.