The Indian renewable energy industry is the fourth largest market in the world. India was ranked fourth in wind power, fifth in solar power installed capacity in 2021. India witnessed the fastest growth rate in renewable energy capacity addition among all major countries in the world in the last 7.5 years with renewable energy capacity growing 1.97 times and solar energy about 18 times.
As of January 2022, India’s installed renewable energy capacity stood at 152.36 GW, representing 38.56% of the overall installed power capacity. 975.60 MW of renewable energy capacity was added in January 2022. Power generation from renewable energy sources stood at 13.15 billion units (BU) in January 2022, up from 11.51 BU in January 2021.
The renewable energy capacity addition stood at 8.2 GW for the first eight months of FY22 against 3.4 GW for the first eight months of FY21.Solar Power
Solar power installed capacity has increased by more than 18 times from 2.63 GW in 2014 to 49.3 GW in 2021. In FY22, till December 2021, India has added 7.4GW of solar power capacity, up 335% from 1.73 GW in the previous year.Investments
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$ 11.21 billion between April 2000-December 2021. More than Rs. 5.2 lakh crore (US$ 70 billion) has been invested in India’s renewable energy sector since 2014.Industry Future
The Indian government plans to establish renewable energy capacity of 523 GW by 2030. The country is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030. ICRA expects renewable energy capacity addition of 12.5 GW in FY22 and 16 GW in FY23.
It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy in India. This will save India Rs. 54,000 crore (US$ 8.43 billion) annually. 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%.