December 2022

As we come to the end of 2022, we look back at what the renewable energy sector has achieved this year and what the new year has in store for this industry. Renewables now contribute to roughly 30 per cent of India’s total installed power capacity with almost 120 GW of deployments. If hydropower is added to this mix, then as of today, 41 per cent of the country’s power capacity is based on clean and green power.

While large-scale renewable power capacity additions continued to be deployed at a rapid pace, the past year will be remembered for the landmark developments in new and emerging segments. From green hydrogen to offshore wind, there have been significant policy interventions from the government and corresponding interest shown by public and private sector companies as well as global investors. The green hydrogen segment got its first policy this year, thereby kickstarting development plans from major industry giants. Meanwhile, offshore wind finally received due attention and long-term visibility with the launch of a bidding trajectory as well as a tender for massive capacity allocation.

Older but often neglected segments like bioenergy, rooftop solar and open access also received an impetus with new policy directives. Further, domestic manufacturing of renewable power components became a key priority with impressive production capacity announced to be set up over the next few years. Meanwhile, efforts were made to address long-standing issues of unpaid dues from discoms and transmission constraints through new roadmaps and plans.

As the sector now moves into a new year, the focus should be on accelerating development across all segments in a streamlined and systematic approach. With the risk of Covid still looming large and the Russia-Ukraine conflict continuing into the new year, India’s renewable energy development will have to factor in these uncertainties and evolve accordingly in order to enable the country’s green energy transition with secure supply chains and sustainable finance.