India is poised not only to achieve its ambitious target of 500 gigawatts of renewable energy capacity by 2030 but also to surpass it, driven by an anticipated decline in battery prices by 2025, according to Ajay Mathur, Director General of the International Solar Alliance (ISA).
Today, India is the world’s third largest producer of renewable energy, with 40 percent of its installed electricity capacity coming from non-fossil fuel sources.
Solar energy-based applications have benefited millions of Indians by meeting their cooking, lighting and other energy needs in an environment-friendly manner. Having achieved large-scale success in solar energy solutions, India has spearheaded the International Solar Alliance (ISA) which is an action-oriented, member-driven, collaborative platform for increased deployment of solar energy technologies. The membership of the ISA is open to all member-states of the United Nations, and 107 countries are signatories to the ISA Framework Agreement at present. The Alliance aims to efficiently utilize solar energy to reduce fossil fuel dependence, thereby creating a greener planet.
Biomass has also been an essential source of energy for India. It is renewable, widely available, carbon-neutral, and has the potential to provide significant employment in rural areas. Rapidly evolving technology has enabled thermal power plants to have more economical and energy-efficient operations. India has co-fired biomass in thermal plants across the country to reduce its CO2 footprint in thermal power generation. biomass power/co-generation programme since the mid-nineties. Over 800 biomass power and bagasse/non-bagasse cogeneration projects have been installed in the country for feeding power to the grid.
India has progressively decoupled economic growth from greenhouse gas emissions. For example, the Net Zero Emissions target by 2030 by Indian Railways alone will reduce emissions by 60 million tonnes annually. Similarly, India’s massive UJALA LED bulb campaign is reducing emissions by 40 million tonnes annually. To further complement these ongoing efforts, India launched the National Hydrogen Mission in 2013 to make India the world’s largest hydrogen hub.
Even though it supports the second-largest population in the world, India’s sustained efforts have ensured that its per capita CO2 emissions are much lower than the global average. The US emits 14.7 tonnes per capita, China emits 7.6 tonnes per capita, and India’s CO2 emissions amount to 1.8 tonnes per capita.
The global power sector is undergoing an accelerated transformation due to technological innovations and response to climate change protocols. At COP-21 in Paris in 2015, India committed to a 40 percent share of power generation from non-fossil fuel sources. We have achieved this target a decade ahead of the 2030 timeline.
India has always shown its willingness in leadership to fight climate change. The country’s vision is to achieve Net Zero Emissions by 2070, in addition to attaining the short-term targets which include:
- Increasing renewables capacity to 500 GW by 2030,
- Meeting 50 percent of energy requirements from renewables,
- Reducing cumulative emissions by one billion tonnes by 2030, and
- Reducing emissions intensity of India’s gross domestic product (GDP) by 45 percent by 2030.
India’s experience will be valuable to other developing nations as they translate their climate pledges into actions and undertake energy transitions toward a more sustainable energy future.
According to Mordor Intelligence, the renewable energy market size is expected to grow from 3.96 terawatt in 2023 to 5.58 terawatt by 2028, at a CAGR of 7.09% during the forecast period (2023-2028).
Hydroelectric power (hydropower) is a renewable energy source where electrical power is derived from the energy of water moving from higher to lower elevations. Hydropower projects also supply clean water for agriculture, homes, and businesses and help mitigate the impacts of extreme weather events, such as floods and drought.
Hydropower is reportedly the single largest source of renewable electricity globally. In 2022, renewable electricity generation from hydropower accounted for nearly 41 percent of total renewable energy, the largest contribution from hydropower in global renewable-based electricity generation.
According to the International Renewable Energy Agency, in 2022, the global hydropower installed capacity reached 1393 gigawatts (GW), representing a rise of 2.19% compared to 2021. The hydropower installed capacity is expected to grow with the upcoming hydro projects and technological advancements.
Last year in August, the Indian government announced the development of two hydropower projects in Nepal, namely the West Seti Hydropower Project and the Seti River Hydropower Project. The total cost of these projects is expected to be around USD 2.4 billion.
The Asia-Pacific region dominated the renewable energy market in recent years. It is likely to maintain its dominance during the forecast period. As of 2022, China is the global leader in renewable energy deployment. The country’s total renewable energy capacity reached 1160.8 GW in 2022, representing an increase of approximately 13.4 percent compared to the previous year. Hydropower, solar, and wind are the major renewable energy sources in the country.
India’s power demand increased significantly in line with its expanding economy and growing population. In 2022, the country generated 162.96 GW of hydropower, up from 147.12 GW in 2021. Also, India has become the world’s third-largest power consumer after China and the United States. Further, India’s net power generation capacity increased significantly in the last decade, most of which came from renewable energy sources, including large hydro.
The Government of India has set a target of installing 175 GW of renewable energy capacity by FY 2022, including 100 GW from solar, 60 GW from wind, 10 GW from bio-power, and 5 GW from small hydro-power. Moreover, the Indian Ministry for New and Renewable Energy expects investment of USD 15 billion in renewable energy, electric vehicles, manufacturing of solar equipment, and green hydrogen in 2022.
Japan’s government has also targeted reducing carbon emissions to 50% by 2030 and achieving carbon neutrality by 2050. In September 2022, Green Power Investment (GPI) chose GE Renewable Energy as the provider for the Fukaura Wind Farm in Fukaura Town, Nishi Tsugaru District, Aomori Prefecture, Japan. The project, which will include 19 units of GE’s 4.2-117 onshore wind turbines, is GE’s third in Japan.
Such developments will likely make Asia-Pacific dominant in the renewable energy market with India and China leading the way. Over the long term, the major driving factors of the market are favorable government policies and increasing adoption of renewable energy with the declining price of solar panels and wind turbine installations.
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