India has made impressive strides in the renewable energy sector, positioning itself as a frontrunner in the global renewable energy market. Thanks to central government policies and initiatives, technological advancements, and significant foreign investments, India has witnessed remarkable growth in renewable energy capacity.
According to the latest report from the International Energy Agency (IEA), India's installed renewable energy capacity will reach 174 GW in 2023, accounting for about 37% of the country's total energy supply. The report indicates that India has exceeded its target of installing 175 GW of renewable energy capacity by 2022, with a projected capacity of 280 GW by 2025.
The government has played a proactive role in promoting the use of renewable energy sources. The flagship National Solar Mission, launched in 2010, aimed to install 100 GW of solar power by 2022, which was later increased to 450 GW by 2030. The Centre has also launched a wind energy program with a target of achieving a capacity of 60 GW by 2022. These ambitious targets have been instrumental in promoting renewable energy adoption in the country.
India's renewable energy sector has also attracted significant foreign investments, with companies from around the world investing in solar and wind power projects in the country. According to the Ministry of Commerce and Industry, foreign direct investment (FDI) in India’s renewable energy sector stood at $251 million (Rs 20.5 billion) in the third quarter (Q3) of the financial year (FY) 2023, with the top investing countries being Singapore, Mauritius, the Netherlands, and Japan.
The decreasing cost of solar and wind power has been a significant driving force behind India's renewable energy growth. According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA), the cost of solar power in India has fallen by 84% since 2010, making it cheaper than coal-based power in most parts of the country. Similarly, the cost of wind power has fallen by 49% in the past decade, making it one of the most cost-effective sources of energy in India.
India's renewable energy success can also be attributed to the rapid technological advancements in the sector. The country is a pioneer in floating solar technology, with the world's largest floating solar power plant, located in Kerala. The plant has a capacity of 500 kilowatts and is expected to generate 7.5 lakh units of electricity per year.
India is also home to the world's largest solar park, the Pavagada Solar Park in Karnataka, which has a capacity of 2 GW. The park has attracted significant investment, with companies such as Softbank, Canadian Solar, and Adani Green Energy investing in the project.
Despite these successes, India's renewable energy sector still faces challenges. The country's power distribution companies, known as DISCOMs, have struggled to integrate renewable energy into the grid due to a lack of grid infrastructure and limited storage capacity. This has led to curtailment of renewable energy output, where power generated by wind and solar projects is wasted due to a lack of demand or transmission infrastructure.
To address these challenges, the government has launched a number of initiatives aimed at improving grid infrastructure and storage capacity. The Green Energy Corridor project, launched in 2013, aims to improve the transmission infrastructure for renewable energy and increase the capacity of grid-connected renewable energy. The government has also launched a National Energy Storage Mission with a target of installing 40 GW of storage capacity by 2025.
The government is also promoting the use of innovative technologies such as demand response, where power consumption is adjusted based on grid requirements. This can help address the issue of renewable energy curtailment and increase the efficiency of the grid.
India's renewable energy success has also had a positive impact on the country's environment. The reduction in coal-based power generation has led to a significant decrease in greenhouse gas emissions, improving the country's air quality and mitigating the effects of climate change.
India's leadership in the renewable energy market has not gone unnoticed, with the country attracting international recognition and accolades. The International Renewable Energy Agency (IRENA) awarded India the Innovator of the Year Award in 2022 for its efforts in promoting renewable energy adoption.
India's renewable energy success has also inspired other countries to follow suit. The country's experience has been shared with other developing nations through international forums, including the International Solar Alliance and the UN Climate Change Conference.
In conclusion, India has emerged as a leader in the global renewable energy market, thanks to a combination of government policies and initiatives, technological advancements, and foreign investments. With a renewable energy capacity of 174 GW installed and growing, India has exceeded its targets and is on track to achieve even greater success in the coming years. The challenges facing the sector, such as grid integration and storage capacity, are being addressed through government initiatives, and the country's success has inspired other nations to follow suit. As India continues to make strides in the renewable energy sector, it is poised to be a key player in the global transition towards a sustainable energy future.
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
