India stands at 4th place globally in terms of wind power, 5th in solar energy and 5th in overall renewable energy installed capacity. In 2014-2015, the share of renewable sources in electricity generation stood at 6% and by 2018-2019 it increased to 10%. Additional investment of about USD 80 billion by 2022 and USD 250 billion by 2023-2030 shall improve the share at a significant level in coming years.
The Economic survey 2018-2019 states that renewable energy sources are strategic national resources and harnessing them is part of India’s vision to achieve social equity, energy transition with energy security, a stronger economy and a major step towards climate change mitigation. Further the survey states that, it is imperative that access to energy is at much lower cost to the environment than it had happened historically in advanced economies.
India is making continuous strives through initiatives to expand renewable energy which can be seen in Indian electricity mix. The cumulative renewable power installed capacity (excluding hydro power which is above 250MW) has doubled from 35GW in 2014 to 78GW in 2019. The further target is to increase it to 175GW by 2022 and gradually improve the share of electricity generation by renewable sources.
The Government of India is committed to increase the use of clean energy sources and is undertaking various large-scale sustainable power projects and promoting green energy heavily. In addition, renewable energy has the potential to create many employment opportunities at all levels, especially in rural areas. The Ministry of New and Renewable Energy (MNRE) has set an ambitious target to set up renewable energy capacities of which about 100 GW is planned for solar, 60 for wind and other for hydro, bio among other by 2022. In June 2018, Government of India aimed to achieve 225 GW of renewable energy capacity by 2022, much ahead of its target of 175 GW as per the Paris Agreement. India’s renewable energy sector is expected to attract investments of up to US$ 80 billion in the next four years. About 5,000 Compressed Biogas plants will be set up across India by 2023.
It is expected that by 2040, around 49% of the total electricity will be generated by the renewable energy, as more efficient batteries will be used to store electricity which will further cut the solar energy cost by 66%. The use of renewable energy in place of coal will save India Rs 54,000 crore (US$ 8.43 billion) annually. With this trend, the renewable energy will account 55% of the total installed power capacity by 2030.
PGDM Batch 2019-2021