India plans to achieve the goal of installing 50GW of renewable energy by 2030
According to a recent research report released by research firm CareEdge, India has reached an important milestone in the process of renewable energy transformation. As of March 31, 2023, the cumulative installed capacity of renewable energy power generation facilities in India is approximately 125GW. This achievement is attributed to the strong growth of the photovoltaic industry, with India installing a total of 67GW of photovoltaic systems and 43GW of wind power facilities. India's transition to renewable energy has significantly improved the country's energy structure, with renewable energy accounting for 30% of the country's total installed capacity of various energy sources, compared to only 15% in fiscal 2016.
The Indian government has set ambitious goals to further accelerate the transition to clean energy, with the goal of installing 500GW of renewable energy power generation facilities by 2030, including specific targets for 280GW of photovoltaic systems and 140GW of wind power generation facilities. In order to achieve these goals, driven by Indian renewable energy developers such as NTPC, SECI, NHPC, and SJVN, the Indian government has promised to tender and purchase approximately 50GW of renewable energy annually for the next five years.
In addition, the business and industrial (C&I) sector is becoming a key player in India's renewable energy sector, and it is expected that the country's installed renewable energy capacity will be significantly increased. It is worth noting that the wind power sector, which has faced challenges in recent years, is revitalizing through new bidding and state specific auctions.
A noteworthy development is that the Indian government has temporarily relaxed the requirements for the Approved List of Photovoltaic Module Manufacturers (ALMM). This measure acknowledges the difficulties faced by renewable energy developers when purchasing photovoltaic modules specifically from suppliers on the ALMM list. However, barriers related to tariffs, including basic tariffs on photovoltaic cells and modules, still pose challenges.
In order to support the manufacturing of domestic photovoltaic modules, the Indian government has launched a Production Linked Incentive (PLI) program, aiming to incentivize local manufacturers to produce more photovoltaic modules and reduce dependence on imported photovoltaic modules.
In order to address the intermittency of renewable energy generation, the Indian government is developing more battery storage systems and pumped storage power generation projects. The Indian government encourages the development of private service providers, providing various incentives and exempting certain fees.
Finally, the introduction of open access rules for green energy is expected to promote the transformation of India's commercial and industrial sectors towards renewable energy, making it more attractive to producers and consumers.
As outlined by CareEdge in its research report, it is expected that these policy measures will drive India's renewable energy industry to new heights, attract investment, and make significant contributions to the country's sustainable energy future.
