India’s renewable energy sector has grown by leaps and bounds to reach roughly 126 GW of installed capacity as of April 2023. Solar power has the bulk share in this with 67 GW of installed capacity followed by wind power with 43 GW of installations. Meanwhile, biopower and small hydro have small shares with just 11 GW and 5 GW of installations respectively.
In fact, a major chunk of the growth in the renewable power sector can be attributed to solar power. Meanwhile, capacity additions in other segments have been scant owing to inherent challenges of offtake, tariff and cost concerns, and lack of policy drivers. Moreover, the highly attractive cost-economics of solar power have tipped the scales in its favor for many offtakers and investors alike.
However, the scenario is expected to change soon for other segments with significant capacity additions in the pipeline. Wind power segment is getting a boost from renewable energy hybrid and round-the-clock renewable energy projects, which are becoming increasingly important for consumers demanding balanced supply of clean power. Moreover, the change in policy regime from reverse auction to closed bidding and state-specific bidding is expected to usher in significant development activity in this space.
In the bioenergy space, compressed biogas has emerged as a sought-after fuel owing to the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme. Further, ethanol blending is also gaining traction with a revised target of 20 per cent blending in petrol by 2025. Meanwhile, the recent budget provision for installation of 500 waste-to-wealth projects is expected to provide a filip to this segment.
Simultaneously, there is significant focus on emerging renewable energy segments like energy storage, green hydrogen, and offshore wind as well. Thus, going forward, sizeable deployments are expected in the renewable energy sector – both in solar power as well as non-solar segments.
