THE CONTEXT: India has made remarkable strides in its renewable energy (RE) sector, with the total installed RE capacity crossing 200 GW as of October 2024. The country aims to achieve 500 GW of non-fossil fuel-based energy by 2030, in line with its Nationally Determined Contributions (NDCs) under the Paris Agreement. The rapid growth in renewable energy capacity reflects India’s commitment to combat climate change, reduce reliance on fossil fuels, and transition toward a greener economy.
OVERVIEW OF INDIA’S RENEWABLE ENERGY LANDSCAPE:
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- Total Capacity and Growth: India’s total installed electricity generation capacity reached 452.69 GW in October 2024, with renewable energy contributing 203.18 GW, accounting for over 46.3% of the total capacity.
- Growth Rate: The renewable energy sector grew by 13.5% in just one year, increasing from 178.98 GW in October 2023 to 203.18 GW in October 2024.
BREAKDOWN BY ENERGY SOURCE:
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- Solar Energy: Solar power leads the renewable mix with an installed capacity of 92.12 GW (27.9% growth from 72.02 GW in October 2023). India’s solar potential is vast due to its geographical location, receiving ample sunlight throughout the year.
- Wind Energy: Wind power contributed 47.72 GW, up 7.7% from the previous year (44.29 GW). Wind corridors along coastal regions and inland areas have been instrumental in this growth.
- Hydropower: Hydroelectric power plays a crucial role in India’s renewable energy landscape, with large hydro projects contributing 46.93 GW and small hydro adding 5.07 GW.
- Bioenergy: Bioenergy, including biomass and biogas, adds another 11.32 GW, utilizing agricultural waste and organic materials for power generation.
LEADING STATES IN RENEWABLE ENERGY CAPACITY:
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- Rajasthan: The state leads with an installed RE capacity of 29.98 GW, benefiting from its vast land area and abundant sunlight.
- Gujarat: With a capacity of 29.52 GW, Gujarat has focused on both solar and wind projects, leveraging its favorable geography.
- Tamil Nadu: Known for its strong wind patterns, Tamil Nadu contributes 23.70 GW to the national RE capacity.
- Karnataka: With a balanced mix of solar and wind projects, Karnataka has an installed capacity of 22.37 GW.
GOVERNMENT INITIATIVES DRIVING RENEWABLE ENERGY GROWTH:
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- National Green Hydrogen Mission: Launched to position India as a global leader in green hydrogen production, this mission aims to decarbonize industries like steel and cement while creating new economic opportunities.
- PM-KUSUM Scheme: This scheme promotes solar energy use in agriculture by providing farmers with solar pumps and grid-connected solar power plants.
- PLI Scheme for Solar PV Modules: The Production Linked Incentive (PLI) scheme encourages domestic manufacturing of high-efficiency solar PV modules, reducing dependence on imports.
- Offshore Wind Policy: India is exploring offshore wind potential along its coastlines, particularly off Gujarat and Tamil Nadu, which could significantly boost wind energy production.
- Fiscal Incentives: Viability Gap Funding (VGF) for offshore wind projects. Capital subsidies for solar rooftop installations under schemes like PM Surya Ghar Muft Bijli Yojana.
ECONOMIC IMPACT OF RENEWABLE ENERGY PROJECTS:
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- Job Creation: In 2023, India’s RE sector created approximately 1.02 million jobs, according to IRENA’s Annual Review. Hydropower is the largest employer within the sector, providing around 453,000 jobs, followed by the solar PV sector, which employs approximately 318,600 people. The wind sector employed about 52,200 people, with roles spanning operations, maintenance, construction, and installation.
- Future Employment Potential: India’s ambitious target of achieving 500 GW from non-fossil sources by 2030 is expected to create 3–4 million jobs across various sectors, such as solar PV manufacturing, wind turbine construction, and green hydrogen production.
- Attracting Investments: In 2022 alone, over $10 billion was invested in India’s renewable energy sector. The Production Linked Incentive (PLI) scheme for solar PV modules has boosted domestic manufacturing capacity from 46 GW in 2023 to 58 GW by 2024.
- Cost Competitiveness: Renewable energy costs have drastically decreased over the past decade. Solar PV module costs have fallen by 85%, making solar energy one of the most cost-effective sources of electricity. Due to technological advancements, wind power tariffs have also decreased significantly.
- Enhancing Energy Independence: Renewable energy projects reduce India’s dependence on imported fossil fuels such as coal and oil. By expanding renewable capacity, India is gradually reducing its reliance on foreign oil imports, which account for a significant portion of its trade deficit.
INDIA’S GLOBAL COMMITMENTS AND INTERNATIONAL ROLE
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- Nationally Determined Contributions (NDCs): India’s updated NDCs under the Paris Agreement reflect its commitment to global climate action. The country aims to reduce emissions intensity by 45% by 2030 compared to 2005 and to achieve 50% cumulative electric power capacity from non-fossil fuel sources by 2030. These targets are part of India’s broader goal of reaching net-zero emissions by 2070.
- Global Leadership: India is positioning itself as a global leader in renewable energy. The country ranks fourth globally in terms of installed RE capacity. India plays a key role in international initiatives like the International Solar Alliance (ISA), which promotes solar energy adoption worldwide.
THE ISSUES:
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- Land Acquisition Challenges: Renewable energy projects, especially solar and wind farms, require vast tracts of land. For instance, a 1 GW solar plant typically requires around 2,000 hectares of land. This creates significant challenges in densely populated or agriculturally essential areas.
- Transmission Infrastructure Deficiencies: India’s transmission infrastructure has not kept pace with the rapid growth in renewable energy generation. Many RE projects in remote areas—such as Rajasthan and Gujarat—are far from consumption centers, leading to bottlenecks in evacuating power to the grid. Plans for large solar projects in Leh were canceled due to weak transmission infrastructure.
- Green Energy Corridor Delays: The Green Energy Corridor (GEC) project was launched in 2013 to facilitate renewable power evacuation by strengthening transmission networks in RE-rich states like Tamil Nadu, Karnataka, and Rajasthan. However, it has faced financing hurdles and delays in land acquisition for substations and transmission lines.
- Grid Integration Challenges: As renewable penetration increases, grid stability becomes a significant concern due to the intermittent nature of solar and wind power. Sudden surges or drops in generation can strain the grid if not appropriately managed.
- Financial Issues with Distribution Companies (DISCOMs): Most power distribution companies (DISCOMs) in India are state-owned entities that suffer from poor financial health due to high losses from theft, technical inefficiencies, and politically motivated tariff structures. These DISCOMs are the primary buyers of renewable energy through Power Purchase Agreements (PPAs), but their inability to make timely payments has led to significant delays. As of June 2024, overdue payments from DISCOMs to power producers stood at $10.42 billion.
- Lack of Affordable Storage Solutions: Energy storage technologies like batteries are still expensive in India due to high import costs for key materials such as lithium-ion cells. This limits widespread adoption despite government incentives.
- Inconsistent Policies Across States: Renewable energy policies vary significantly across states regarding incentives offered for solar rooftop installations or net metering regulations. This inconsistency creates confusion among developers and hampers uniform growth across regions. In Telangana, high land prices have discouraged developers from setting up new projects despite favorable solar potential.
- Renewable Purchase Obligations (RPOs): RPOs mandate that DISCOMs purchase a certain percentage of their electricity from renewable sources yearly. However, many states fail to meet these obligations due to financial constraints or lack of enforcement mechanisms.
THE WAY FORWARD:
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- Streamlining Land Acquisition and Land Use Optimization: The complexities of land ownership, legal disputes, and procedural delays hinder project timelines. A uniform national land acquisition policy for renewable energy projects is essential to streamline this process.
- Agrovoltaics: To address land scarcity, agrovoltaics (the dual use of land for agriculture and solar energy) offers a sustainable solution. This approach allows solar panels installed on agricultural land without displacing crops. Agrovoltaics can improve land productivity by 35–73%, providing additional income streams for farmers while generating renewable energy.
- Strengthening Transmission Infrastructure: Fast-tracking the completion of the GEC with better coordination between state and central agencies can solve transmission bottlenecks. Additionally, leveraging public-private partnerships (PPPs) can accelerate infrastructure development.
- Reforming DISCOMs through UDAY 2.0: The introduction of UDAY 2.0, an extension of the Ujwal DISCOM Assurance Yojana (UDAY), can help improve DISCOM finances by reducing their debt burden and improving operational efficiency.
- Clear Net Metering Policies: A uniform national net metering policy would clarify the issue and encourage more rooftop solar installations. States like Delhi have implemented successful net metering programs that have boosted rooftop solar adoption.
- Promoting Circular Economy in Solar Waste Management: According to the International Renewable Energy Agency (IRENA), India is projected to become the fourth-largest producer of solar panel waste by 2050. Developing a circular economy approach where PV panels are recycled or repurposed can mitigate environmental harm. Countries like Germany have established recycling facilities for PV panels under Extended Producer Responsibility (EPR) regulations in Europe.
THE CONCLUSION:
India’s renewable energy growth, driven by solar and wind energy surges, aligns with Sustainable Development Goal (SDG) 7 (Affordable and Clean Energy) and SDG 13 (Climate Action), ensuring a sustainable, low-carbon future. By leveraging its vast natural resources and state-level leadership, India is progressing toward a greener economy while addressing global climate challenges.
UPSC PAST YEAR QUESTIONS:
Q.1 To what factors can the recent dramatic fall in equipment costs and solar energy tariff be attributed? What implications does the trend have for the thermal power producers and the related industry? 2015
Q.2 Write a note on India’s green energy corridor to alleviate the problems of conventional energy. 2013
MAINS PRACTICE QUESTION:
Q.1 “India has witnessed a significant surge in renewable energy capacity, particularly in solar and wind energy.” Discuss the major challenges faced by India in scaling up its renewable energy sector, from generation to transmission.
SOURCE:
https://pib.gov.in/PressReleasePage.aspx?PRID=2073038
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