Market Reports

Renewable Energy Resources in India

Renewable Energy Resources
1Quick Facts: India’s Renewable Energy Resources
2Overview: Total Power Generation Capacity
3Power Sector at a Glance
4Renewable Energy Resources: Key Players
5Use of Energy Storage Systems in Power Projects 
6Investments and Developments in Renewable Energy Resources 

Quick Facts: India’s Renewable Energy Resources

India has 4th largest renewable energy (including hydro) generation capacity in the world
India ranks 4th in wind power capacity and 5th in solar power capacity
Renewable energy accounts for 43% of the country’s total energy capacity
Solar power installed capacity has increased by 30 times since 2014
In the last 9 years, India’s wind power capacity has doubled
India’s total installed power generation capacity reached 416.6 GW at the end of May 2023
India aims to produce 5 Mn tons of green hydrogen by the end of 2030
Around the country, 50 solar parks are already approved, with a capacity of 38 GW
India aims for 500 GW of installed renewable energy capacity by 2030 to fulfill the country’s 50% energy requirement
India is 3rd largest energy consumer in the world
As of May 2023, India’s total fossil fuel power generation capacity was 56.9%
Installed renewable power generation capacity increased at a CAGR of 15.4% between FY16 to FY23
India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040
As of November 2023, 43.9% of the total power installed capacity is from non-fossil-based sources
India's installed renewable energy (excluding hydro) capacity is expected to increase by about 170 GW by March 2025
Renewable Energy Examples: Hydro Energy, Solar Energy, Wind Energy, etc.

Overview: Total Power Generation Capacity

As of May 2023, India’s total installed power generation capacity was 416.6 GW
  • According to the Ministry of Power, the country’s peak demand reached a record high of 223 gigawatts (GW) in June 2023, a rise of 3.4% from the highest level in 2022, and consumption is projected to increase in the upcoming period.
  • India has achieved such installed capacity supported by industrial growth, urbanization, government policies, and favorable geopolitics over the past decade.
  • The Indian power sector employs a wide range of fuel sources, including traditional sources such as coal, oil, and gas, alongside environmentally sustainable sources such as solar, wind, biomass, industrial waste, and both large and small hydro plants.
  • Fossil fuels dominate India’s power sector, but the country has ambitious goals to significantly increase the share of renewable and nuclear energy.
  • The gap between India’s installed renewable energy capacity and the actual electricity production from non-fossil fuel sources is due to the intermittent nature of renewable energy sources such as wind and solar.

Power Sector at a Glance All India

Installed Generation Capacity (Sector-wise) as of May 2023
Sector Capacity (GW) % of Total
Private Sector 210.9 50.6%
State Sector 105.7 25.4%
Central Sector 100.0 24.0%
Total Capacity 416.6
Installed Generation Capacity (Sector-wise) as of May 2023
Source Category Capacity (GW) % of Total
Fossil Fuel
Coal 205.2 49.3%
Lignite 6.6 1.6%
Gas 24.8 5.9%
Diesel 0.6 0.1%
Total Fossil Fuel 237.2 56.9%
Non-fossil Fuel
RES (Inc. Hydro) 172.6 41.4%
Hydro 46.9 11.3%
Wind 42.9 10.3%
Solar 67.1 16.1%
BM Power/Cogen 10.2 2.5%
Waste to Energy 0.6 0.1%
Small Hydro Power 4.9 1.2%
Nuclear 6.8 1.6%
Total Non-fossil Fuel 179.4 43.1%
Total Capacity 416.6

India’s Renewable Energy Resources: Key Players

Company

Total Power Generation Capacity (MW)

Renewable Energy Capacity (MW)

NTPC

75,958

3,496

Adani Group

23,600

8,400

Tata Power

14,464

4,200

JSW Energy

7,200

2,200

Torrent Power

4,110

787

India’s Leading Companies in Wind Energy Sector

  • Vestas India

  • Suzlon Energy

  • ReGen Powertech

  • Wind World India

  • Orient Green Power

  • Indowind Energy

  • GE Energy India

  • Inox Wind

  • RRB Energy

India’s Leading Solar Panel Manufacturers

  • Insolation Energy

  • Goldi Solar

  • Tata Power

  • Vikram Solar

  • Waaree Energies

  • Primier Energies

  • RenewSys India

  • Pixon

  • Adani Solar

  • Navitas Solar

Use of Energy Storage Systems in Power Projects

  • Irrespective of the many advantages of using power storage systems in power generation projects, the adoption rate of energy storage systems has been very low in India. It can be mainly attributed to required the high investment and other operational difficulties.
  • In India, most of the companies prefer to connect directly to the grid instead of investing in batteries. Some of the key reasons for the same are depicted below:

Transit Loss

With 2% of the transit loss, power companies can bill 98% of the power generated by directly connecting the projects to the grid. Hence, power companies usually do not prefer to invest in power storage systems unless there are some operational issues or the Government tender mentions the requirement of having power storage systems at the power plant

Need of Inverter

Along with the power storage system/large-scale batteries, additional investment is needed to purchase and install inverters to convert power from DC-AC.

Solar Energy in India:

  • As of May 2023, India’s installed solar energy capacity was 67.1 GW and the country is targeting about 280 GW of installed solar energy capacity by 2030
  • Currently, solar energy’s contribution to total renewable energy capacity is more than 50%
  • India is looking to position itself as a manufacturing destination for solar photovoltaic cells
  • India stands 5th in solar PV deployment across the globe
  • Currently, 90% of India’s solar photovoltaic (PV) capacity is concentrated in just nine states
  • Under the Rooftop Solar Scheme, the government will provide the below subsidies for installing solar panels:
    • 30,000/- per kW up to 2kW
    • 18,000/- per kW for additional capacity up to 3kW
    • Total subsidy for systems larger than 3kW capped at Rs. 78,000/-

Investments and Developments in Renewable Energy Resources

  • On April 3, 2024, Adani Green Energy Limited (AGEL) surpassed 10,000 MW installed capacity of renewable energy. AGEL’s operational portfolio consists of 7,393 MW solar, 1,401 MW wind, and 2,140 MW wind-solar hybrid capacity. The milestone is a testament to AGEL and its development partners firmly moving towards the goal of 45,000 MW of renewable energy by 2030.
  • On April 1, 2024, Tata Power Saurya Ltd. (TPSL) announced the successful commissioning of a 200 MW solar project located in Bikaner, Rajasthan. Expected to generate an impressive 485 million units of energy annually, the project aligns with the Company’s mission to drive substantial contributions to India’s renewable energy capacity.
  • In March 2024, Adani Green Energy Limited commissioned a 180 MW solar power plant at Devikot in Jaisalmer, Rajasthan. The plant has a 25-year power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI). The 180 MW solar plant will produce approximately 540 million electricity units annually.
  • India offers a great opportunity for investments in the RE sector; Rs. 16,00,000 crore worth of projects are underway in India
  • According to IBEF, In November 2023, Ampin Energy Transition announced an investment of Rs. 3,100 crore to establish renewable energy projects exceeding 600 MW and an integrated manufacturing facility for solar cells and modules across the Eastern region. The funding will be focused on West Bengal, Bihar, Odisha, Jharkhand, Chhattisgarh, and the Northeastern States.
  • In November 2023, NTPC Renewable Energy Ltd. signed an MoU with the Indian Army for the Implementation of Green Hydrogen Projects in its establishments on Build, Own and Operate (BOO) model. The intent is to reduce complex logistics, and dependence on fossil fuels and accelerate decarbonization.
  • Delhi’s Indira Gandhi International Airport (IGIA) has become the first Indian airport to run entirely on hydro and solar power. The onsite solar power plants meet around 6% of the airport’s electricity requirement.
  • The world’s largest renewable energy park, of 30 GW solar-wind hybrid project, is under installation in Gujarat.
  • In August 2022, Norfund, which manages the Norwegian Climate Investment Fund, and KLP, Norway’s biggest pension company, signed an agreement to buy a 49% share of a 420 MW solar power plant in Rajasthan for Rs. 280 crore.
  • In June 2022, Ayana Renewable Power Pvt Ltd (Ayana) announced plans to set up renewable energy projects totaling 2 gigawatts (GWs) with an investment of Rs. 12,000 crore in Karnataka.

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