Renewable Energy Industry in India

The Renewable Energy Market in India

Indian renewable energy market was projected to be worth $7.5 billion in 2012, according to India Solar Guide. The market includes revenues from solar photovoltaic (PV), wind power, hydropower and biopower segments. Asia’s third-largest economy is expected to attract $14 billion investment in renewable energy through 2015. A number of factors have contributed to the growth of renewable energy market in India including rapid industrialization, rising electricity demand and increasing need for cleaner fuels. In addition, government incentives such as feed-in tariffs (FiTs) are also boosting investments in clean technology. Moreover, growing awareness about environmental concerns has led consumers to adopt green products resulting in a rise in demand for eco-friendly products including solar PV panels and wind turbines among others. Government support in terms of tax rebates on import duties and FiTs is required to further promote development of renewable technologies. Nonetheless, with an ever-increasing demand for clean fuel sources across industries coupled with government initiatives, it can be predicted that growth opportunities will only continue to increase over time.

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Creating a Sustainable World

India ranks 3rd in renewable energy country attractive index in 2021.

The country has set an ambitious target to achieve a capacity of 175 GW worth of renewable energy by the end of 2022, which expands to 500 GW by 2030. This is the world’s largest expansion plan is in renewable energy.

India’s installed renewable energy capacity has increased 286%  in the last 7.5 years and stands at more than 151.4 Giga Watts (including large Hydro), which is about 39 per cent of the country’s total capacity (as on 31st December 2021). The installed solar energy capacity has increased by 17 times in the last 7 years, and stands at 49.5 GW. The installed Renewable energy capacity (including large hydro) has increased from 76.37 GW in March 2014 to 151.4 GW in December 2021, i.e. an increase of around 98%.

India has achieved its NDC target with total non-fossil based installed energy capacity of 158.17 GW which is 40.2% of the total installed electricity capacity. Up to 100% FDI is allowed under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act, 2003.

For further details, please refer FDI Policy

How Solar Power can help transform the Indian Economy

The new government is keen to make sure India taps its vast potential for solar power. It wants to install more than 100 gigawatts of solar capacity by 2022 and has set a goal of producing 100,000 MW of renewable energy, up from just over 20,000 MW today. This makes sense as solar is a clean source of energy with virtually unlimited potential in India. The solar energy could meet more than half of India’s growing electricity demand over the next decade. That would mean adding about 60 GW annually—more than twice what was installed globally last year.

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Renewables will make up 14% of India’s total installed power capacity by 2021. This estimate is roughly in line with government estimates, which expect 11-14% of total capacity to come from non-hydro renewable sources. The Indian government also plans to increase its solar capacity to 100 gigawatts (GW) by 2022, a more than sixfold increase over present levels. However, Prime Minister Narendra Modi may exceed even these targets. In his Independence Day speech last year, he announced that his administration would aim for an additional 175 GW of renewable energy capacity by 2022. That would bring India close to having half of its overall electricity generation capacity coming from clean energy sources. And as a sign of just how serious India is about achieving these goals, it recently extended a national tax break on new solar installations until March 2019.

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Industry scenario

Renewable energy sources have a combined installed capacity of 150+ GW. As of 31 December 2021, the total installed capacity for renewable energy in India is 151.4 GW. The following is the breakup of total installed capacity for Renewables, as of 31 December 2021:

• Wind power: 40.08 GW
• Solar Power: 49.34 GW
• BioPower: 10.61 GW
• Small Hydro Power: 4.83 GW
• Large Hydro: 46.51 GW

Government of India has set targets to reduce India’s total projected carbon emission by 1 billion tonnes by 2030, reduce the carbon intensity of the nation’s economy by less than 45% by the end of the decade, achieve net-zero carbon emissions by 2070 and expand India’s renewable energy installed capacity to 500 GW by 2030.

• 45 solar parks of aggregate capacity 37 GW have been approved in India.
• Solar Parks in Pavagada (2 GW), Kurnool (1 GW) and Bhadla-II (648 MW) included in top 5 operational solar parks of 7 GW capacity in the country
• The world’s largest renewable energy park of 30 GW capacity solar-wind hybrid project is under installation in Gujarat.

Download PDF: Renewable Energy Industry in India: A Clean Energy Revolution is taking Place across India Energy Sector

Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in High Efficiency Solar PV Modules for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

Business Opportunities in India’s Renewable Energy Sector

India is working to increase its share of renewable energy, moving away from coal, which makes up 60% of its current energy production. The country has instituted an ambitious plan that will see it generate 40% of its power from renewable sources by 2030. This transition means companies have an opportunity to profit and make their mark in India’s renewable-energy sector. Here are a few ways you can take advantage of these business opportunities:

1. Invest in Solar Power Companies
2. Invest in Wind Power Companies
3. Supply Clean Energy Equipment to Power Plants or Install Them Yourself as a Service Provider
4. Develop Renewable Energy Projects for Commercial Use
5. Manufacture Components for Solar Panels and Wind Turbines
6. Provide Clean-Energy Consulting Services 7. Research New Solar and Wind Technologies
7. Sell Solar Power Systems to Homes and Businesses
8. Buy a Solar Panel Franchise
9. Manufacture or Install Solar Panels in Developing Countries (and Export to Your Home Country)
10. Make Clean-Energy Investments
11. Become an Authorized Sales Representative for a Solar Panel Manufacturer 13. Start a Clean-Energy Franchise
12. Invest in Clean-Energy Technology Startups
13. Develop Clean-Energy Technologies and Licensing Agreements
14. Manufacture or Install Solar Panels to Sell to Other Countries
15. Sell Electric Vehicles (for Commercial Use) and Recharge Stations
16. Develop Electric Vehicle Charging Stations
17. Manufacture or Install Electric Vehicle Charging Stations
18. Manufacture Solar Panels for Your Own Home

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GROWTH DRIVERS

Government Commitments

Reduce India’s total projected carbon emission by 1 bn tonnes by 2030, reduce the carbon intensity of the nation’s economy by less than 45% by the end of the decade, achieve net-zero carbon emissions by 2070 and expand India’s renewable energy installed capacity to 500 GW by 2030.

Proposed Solar Cities and Parks

1 solar city per state-approved and approval setting up 45 solar parks of 37 GW across the nation

New Areas of Opportunities

Wind – Solar Hybrid, Off-shore Wind Energy, Floating PV Projects, Green Hydrogen

Atmanirbhar Bharat

PLI scheme in Solar PV manufacturing with financial outlays of INR 24,000 crores introduced under Atmanirbhar Bharat 3.0. Imposition of Basic Customs Duty of 25% on Solar Cell & 40% on Solar PV Modules w.e.f. 01.04.2022.

INDUSTRY TRENDS

100 smart city projects

Provision of rooftop solar and 10% renewable energy mandatory.

Up-gradation and modernization

Up-gradation of watermills and micro hydro projects.

Solar pumps

100,000 solar pumps required for agriculture.

Green Energy Corridor

Plans to set up 12600 ckm of inter-state and intra-state transmission lines.

Government Ministry/ Department

• Indian Renewable Energy Development Agency
• Ministry of New and Renewable Energy (MNRE)
• National Institute of Solar Energy (NISE)
• National Institute of Wind Energy (NIWE)
• Sardar Swaran Singh National Institute of Bio-Energy
• Skill Council for Green Jobs
• Solar Energy Corporation of India (SECI)

Industry Associations

• Independent Power Producers Association
• India Energy Storage Alliance
• Indian Wind Energy Association
• Indian Wind Power Association
• Indian Wind Turbine Manufacturers Association
• National Solar Energy Federation of India
• Solar Power Developers Association
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