In Short : India’s Ministry of New and Renewable Energy (MNRE) aims to achieve a renewable energy capacity of 50 gigawatts (GW) by the next year, according to the MNRE Secretary. This ambitious target underscores India’s commitment to rapidly scaling up its renewable energy sector, reducing carbon emissions, and meeting its sustainable energy goals. By investing in various renewable energy sources such as solar, wind, and hydroelectric power, India aims to enhance its energy infrastructure, promote clean energy adoption, and contribute significantly to the global efforts in combating climate change.
In Detail : The country reached a total capacity of about 15 GW last year. This year, the goal is to reach 25 GW, as mentioned by Bhalla
The government is confident that it will reach a 25 gigawatt (GW) renewable energy capacity in the current fiscal year, according to Bhupinder Singh Bhalla, Secretary of the Ministry of New and Renewable Energy.
The country reached a total capacity of about 15 GW last year. This year, the goal is to reach 25 GW, as mentioned by Bhalla to Financial Express.
Bhalla stated that the government hopes to increase these figures even further in the upcoming years, with a particular objective of reaching 50 GW the following year.
The government wants to triple its renewable energy capacity to 500 GW by 2030, which will require adding 50 GW of new renewable energy capacity every year.
In the first half of the current fiscal year, India has already installed 6.6 GW of renewable energy capacity, according to data from the Central Electricity Authority.
According to Bhalla, the government has already started accepting bids for 20.8 GW of capacity, with a more ambitious ambition of 50 GW. It’s crucial to remember that these figures only include central bids, state bids are not included.
In addition, in comparison to other renewable energy sources, the government is giving priority to expanding solar energy capacity.
Following a slow first half of the fiscal year, analysts predict a spike in capacity addition in the second half of FY24, which they credit to lower prices for solar modules and the government’s easing of restrictions on the approved list of models and manufacturers (ALMM).
The initial slowdown in renewable energy capacity addition during the first half of the fiscal year was primarily due to supply chain disruptions. However, recent reports by Jefferies have raised concerns, indicating that the pace of renewable auctions falls short of the annual run-rate of 15-20 GW necessary for India to meet its 500 GW renewable energy capacity target by 2030.
These auctions have predominantly been in the solar and hybrid energy segments, representing 69 per cent and 13 per cent of the total bids. As of now, approximately 23 per cent of India’s total power demand is met through renewable energy sources, while thermal power sources account for as much as 74 per cent.
The government aims to increase the proportion of renewable energy in the energy mix to 40 per cent by 2030. According to the National Electricity Plan released in May, the government envisions a renewable energy installed capacity of 596 GW by 2032 and anticipates an investment of USD 410 billion for power capacity addition between 2022 and 2032.