India has achieved a momentous milestone in its renewable energy (RE) journey, with an installed RE capacity of approximately 125 GW as of March 31, 2023, according to a report prepared by CareEdge (CARE Ratings Limited). This remarkable achievement is underpinned by the dynamic expansion of the solar sector, leading the charge with 67 GW of installed capacity, closely trailed by wind energy at 43 GW. India's steadfast transition to renewable energy has significantly enhanced its energy landscape, with renewables now constituting 30% of the country's total capacity, marking a notable ascent from the 15% figure at the close of FY16.
The Indian government, fueled by determination, has laid out ambitious targets to further expedite the shift towards clean energy. The nation aims to attain 500 GW of non-fossil fuel-based capacity by 2030, with specific benchmarks of 280 GW for solar and 140 GW for wind power. To materialize these visionary objectives, the government has committed to the annual bidding of approximately 50 GW of RE capacity over the next five years. This process will be expertly facilitated by central Renewable Energy Implementing Agencies (REIA) such as NTPC, SECI, NHPC, and SJVN.
Intriguingly, the commercial and industrial (C&I) sector is emerging as a pivotal player in India's RE landscape, poised for substantial capacity additions. Particularly, the wind energy sector, which grappled with challenges in recent times, is experiencing rejuvenation through innovative bidding trajectories and state-specific auctions.
A notable development in this trajectory is the temporary relaxation of the Approved List of Module Manufacturers (ALMM) requirement. This pragmatic move acknowledges the complexities faced by developers in sourcing modules exclusively from ALMM suppliers. However, tariff-related obstacles, including basic customs duties on cells and modules, continue to present challenges.
In a bid to fortify domestic module manufacturing, the government has introduced a Production Linked Incentive (PLI) scheme, anticipated to invigorate significant domestic module production and reduce dependence on imports.
To address the intermittent nature of renewable energy generation, the government is championing both Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP). Comprehensive guidelines have been issued to foster the development of PSPs, replete with a gamut of incentives and exemptions from specific charges.
Lastly, the ushering in of green energy open access rules is anticipated to streamline the transition to renewable energy in the commercial and industrial sector, rendering it increasingly appealing to both producers and consumers.
These visionary policy initiatives, as delineated in the CareEdge report by CARE Ratings Limited, are poised to propel India's RE capacity to unprecedented heights, beckoning investments, and making a substantial contribution to the nation's sustainable energy future.
