As of June 2024, India has an installed renewable energy capacity of 195 GW of renewables including 86 GW solar power capacity, 47 GW hydro, 47 GW wind, 11 GW bio power and 5 GW of small hydro. Total renewable energy capacity, excluding hydro power, has increased from 79 GW in 2018-19 to 148 GW as of today.
Considering source-wise statistics, the solar power segment has grown over the past few years to cross 85.47 GW of total installations as of June 2024 from just 29.10 GW in 2018-19, much more than any other clean power source. Meanwhile, wind power capacity has grown from 35.65 GW in 2018-19 to just 46.65 GW as of today.
According to the Central Electricity Authority’s National Electricity Plan, India’s total installed renewable power capacity is estimated to reach 507 GW by the end of 2031-32 comprising roughly 56 per cent of the total power capacity by then. This would be majorly made of 365 GW of solar and 122 GW of wind with biomass and small hydro contributing minor parts. However, there is significant gap between the planned capacity and current implementation status.
Regarding projects in pipeline, government statistics show 100 GW of solar projects under implementation and 41 GW tendered, bringing the total solar portfolio to 227 GW, still more than 100 GW short of the 2031-32 plan. In the case of wind, just 21 GW of projects are under implementation or have been tendered, leaving a gap of about 50 GW as per the 2031-32 plan.
Overall, the renewables sector has witnessed significant growth due to attractive market dynamics, conducive policy environment and industry appetite. However, the growth has been impacted by issues related to grid and land issues, supply chain concerns, policy flip flops and delays in power purchase agreements, and wind has been hit harder than solar power, thereby the dent in capacity additions. These kinks need to be ironed out urgently to improve the pace of implementation of projects and sustain investor confidence in the sector.
