Indian renewable energy sector is the fourth renewable energy market in the world . India was ranked fifth in wind power, fifth in solar power and fourth in renewable power installed capacity during the last financial year.
The renewable energy industry has been posting a CAGR of 17.33% between FY16-20. India is expected to reach 15,820 TWh by 2040, and renewable energy is set to play an important role in this growth. The government is aiming to achieve 227 GW of renewable energy capacity including 114 GW of solar capacity and 67 GW of wind power capacity by 2022, more than its 175 GW target\. The government plans to establish renewable energy capacity of 523 GW including 73 GW from Hydro by 2030.
For the current financial year, the installed renewable energy capacity stood at 94.43 GW. Power generation from renewable energy sources in India reached 127.01 billion units (BU) in FY20.
With a potential capacity of 363 GW and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.
Investments into the Industry
According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow in the Indian non-conventional energy sector stood at US$ 9.83 billion between April 2000 and December 2020. More than US$ 42 billion has been invested in India’s renewable energy sector since 2014. India ranked 3rd globally in terms of its renewable energy investments and plans in 2020.
It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy . Use of renewable energy in place of coal will save India Rs. 54,000 crore (US$ 8.43 billion) annually. Renewable energy will account for 55% of the total installed power capacity by 2030.
As per the Central Electricity Authority (CEA) estimates, by 2029-30, the share of renewable energy generation would increase from 18% to 44%, while that of thermal is expected to reduce from 78% to 52%.