By Sarthak Takyar
India’s total renewable energy capacity, including large hydro, stood at 203,215.27 MW in October 2024. This accounts for around 45 per cent of the country’s total power capacity of 454,452.18 MW. The top 10 states in terms of installed renewable capacity account for over 87 per cent of India’s total renewable energy capacity.
Renewable Watch provides an overview of the current status and future outlook for renewables in these states…
Rajasthan
Rajasthan has made significant strides in the past few years to become the state with the highest renewable energy capacity of 30,309.86 MW. As of October 2024, the renewable energy capacity in the state comprised 5,195.82 MW of wind power, 24,553.13 MW of solar power, 126.06 MW of biopower, 23.85 MW of small-hydro and 411 MW of large hydro. Solar power capacity, which accounts for 81 per cent of the state’s total installed non-fossil fuel capacity, comprises ground-mounted solar systems (20,473.11 MW), rooftop solar (1,294.57 MW), off-grid solar (805.45 MW) and hybrid solar (1,980 MW). Further, Rajasthan has effectively harnessed its wind resources, ranking fifth in terms of the total installed wind power capacity. The state’s biopower capacity comprises 119.25 MW of biomass power/bagasse cogeneration capacity, 2 MW of biomass cogeneration (non-bagasse) and 4.81 MW of off-grid waste-to-energy (WtE) capacity.
Going forward, Rajasthan aims to set up 90 GW of clean power projects (65 GW of solar, 15 GW of wind and hybrid sources, and 10 GW of hydro, pumped storage plants and battery energy storage systems). Several developments have taken place in the state in the past year, with industry players planning to invest heavily in the solar, wind, solar-wind hybrid and pumped storage project (PSP) segments. While earlier, the lingering Great Indian Bustard issue was dampening the investor outlook, the Supreme Court reviewing its judgment and limiting the need to install transmission lines underground to only a select priority area of 3,163 sq. km (against about 80,000 sq. km previously) bodes well for investor confidence. It is also a relief for developers in Gujarat.
Gujarat
As of October 2024, Gujarat’s total installed renewable energy capacity stood at 29,814.36 MW, comprising 12,314.48 MW of wind power (highest amongst all states), 15,305.26 MW of solar power, 112.98 MW of biopower, 91.64 MW of small hydro and 1,990 MW of large hydro. This accounts for approximately 15 per cent of India’s renewable energy portfolio. The state has the second-largest installed solar power capacity in the country, second only to Rajasthan. Its solar capacity comprises ground-mounted solar (10,223.8 MW), rooftop solar (4,340.05 MW), off-grid solar (89.09 MW) and hybrid solar (652.32 MW).
Going forward, Gujarat aims to set up 100 GW of cumulative renewable energy capacity by 2030 with investments of around Rs 5,000 billion. Between 2024-25 and 2030-31, it plans to add 22.54 GW of wind power and 24.69 GW of solar power, raising its total renewable energy capacity to 73.24 GW. To achieve this, Gujarat Urja Vikas Nigam Limited intends to release tenders for about 10 GW of new renewable energy projects annually until 2028 and aims to source 50 per cent of energy from renewable sources by 2030. Going forward the spotlight will be on offshore wind and green hydrogen. To this end, several policy developments and industry plans have been formulated in the past year.
Tamil Nadu
As of October 2024, the total renewable energy capacity of the state, including large hydro, stood at 23,799.59 MW (comprising 11,128.84 MW of wind power, 9,324.05 MW of solar power, 1,045.45 MW of biopower, 123.05 MW of small-hydro and 2,178.2 MW of large hydro). The state’s solar capacity consists of ground-mounted solar (8,462.92 MW), rooftop solar (792.17 MW) and off-grid solar (68.96 MW). Meanwhile, its biopower capacity constitutes biomass power/bagasse cogeneration (969.1 MW), biomass cogeneration (non-bagasse) (43.55 MW), WtE (6.4 MW) and off-grid WtE (26.4 MW). At 11,128.84 MW, Tamil Nadu currently has the second-highest installed wind power capacity in the country. Going forward, it plans to leverage its offshore wind potential of 35 GW, which is key for the state to meet its ambitious target of increasing renewable energy generation to 50 per cent by 2030.
Several policy developments have taken place in the state during the past year, with the release of three key policies for the renewables sector concerning wind repowering and refurbishment, small hydro and pumped hydro storage development. The central government, too, has announced several incentives and plans for promoting offshore wind in the state. In the solar space, a key highlight has been the setting up of manufacturing facilities for solar components. Several developments are taking place in the green hydrogen space as well. However, one stumbling block in the state’s renewables growth story could be the decision to introduce a wind resource tax for wind energy projects connected to the central grid. It is likely that the state may have to reconsider this going forward.
Karnataka
Karnataka has emerged as a key state for renewable energy development with the total capacity reaching 22,538.34 MW as of October 2024. This constitutes 6,724.36 MW of wind power, 8,930.1 MW of solar power, 1,909.95 MW of biopower, 1,284.73 MW of small-hydro and 3,689.2 MW of large hydro. The state’s lead in renewable energy is mainly due to the growth of solar power, which makes up about 40 per cent of its renewable energy capacity. The state’s solar capacity comprises ground-mounted solar (8,261.33 MW), rooftop solar (632.13 MW) and off-grid solar (36.64 MW). Its biopower capacity comprises 1,868.91 MW of biomass power/bagasse cogeneration, 20.2 MW of biomass cogeneration (non-bagasse), 1 MW of WtE and 19.84 MW of off-grid WtE.
Karnataka, an early mover in the renewable energy sector, has risen to prominence because of its effective policies, programmes and implementation. The state has overachieved its past solar targets, with a significant expansion of large-scale solar parks. Under the Karnataka Renewable Energy Policy, 2022-27, the state has set ambitious renewable energy targets. It was also one of the first few states to issue green energy open access rules, in line with the central policy. It is now actively looking to promote pumped storage and green hydrogen projects. Despite these positives, the state needs to address issues related to the integration of large amounts of renewables into the grid. A key trend for the state going forward will be the exploitation of its large lithium resources. Last year, in a written reply to an unstarred question in the Rajya Sabha, it was reportedly stated that there are 1,600 tonnes of lithium resources in Marlagalla in Mandya. Further surveys and subsurface explorations are being carried out by AMD in Yadgiri. Tapping this resource will be key for the country’s energy transition.
Maharashtra
At 19,765.28 MW, Maharashtra holds the fifth position in terms of installed renewable energy capacity in the country. Its renewable energy capacity comprises 5,216.38 MW of wind power, 8,133.57 MW of solar power, 2,984.05 MW of biopower, 384.28 MW of small-hydro and 3,047 of large hydro. The state has the highest installed biopower capacity in the country, comprising biomass power/bagasse cogeneration (2,907.3 MW), biomass cogeneration (non-bagasse) (16.4 MW), WtE (12.59 MW) and off-grid WtE (47.76 MW). Its solar capacity encompasses 4,747.43 MW, 2,651.81 MW and 734.33 MW of ground-mounted solar, rooftop solar and off-grid solar respectively.
Developments related to green hydrogen and pumped storage have been the highlight for the state. Maharashtra aims to achieve a green hydrogen production capacity of 500 kilotonnes per annum (ktpa) by 2030. It has signed MoUs worth Rs 2,763 billion with seven companies over the past year to establish green hydrogen projects. These initiatives aim to produce 910 ktpa of clean energy, create around 63,900 jobs and cut annual carbon emissions by 5.11 billion kg. The key investors in this space are NTPC Green Energy, ReNew e-Fuels, Avaada Green Hydrogen, Bafna Solar, JSW Energy, Welspun Godavari GH2, INOX Air Products and L&T Green Energy. Meanwhile, a consortium of Gensol Engineering and Matrix Gas plans to develop a green hydrogen valley in Pune with Rs 2.5 million in funding, aimed at supplying green hydrogen to the city’s specialty chemicals sector. In the PSP space, industry players such as Tata Power (2.8 GW) and Welspun (1.2 GW) have signed MoUs with the state government in the past year. Solar irrigation will be another key segment for Maharashtra going forward, with a substantial Rs 100 billion being allocated for the Chief Minister’s Solar Agriculture Feeder Programme 2.0.
Himachal Pradesh
Himachal Pradesh has entered this year’s Top 10 list as large hydro capacity has been taken into account as well. As of October 2024, the state’s total installed renewable capacity stood at 11,422.22 MW, comprising 137.29 MW of solar power, 10.2 MW of biopower (9.2 MW of biomass cogeneration non-bagasse and 1 MW of off-grid WtE), 993.71 MW of small-hydro and 10,281.02 MW of large hydro, which accounts for almost 90 per cent of the state’s renewable energy portfolio. In fact, Himachal Pradesh has the highest installed large-hydro power capacity in the country. Its solar capacity comprises ground-mounted solar (80.68 MW), rooftop solar (22.03 MW) and off-grid solar (34.58 MW).
Recently, Union Minister for Power and Housing and Urban Affairs Manohar Lal took stock of the power sector in the state and stressed the need to quickly implement the works under the Revamped Distribution Sector Scheme, reduce AT&C losses to less than 10 per cent, bring down the financial burden on discoms by eliminating the difference between the average cost of supply and average revenue, and prioritise the implementation of system metering. Going forward, the state needs to overcome the issue of delays in hydropower and pumped storage project development. A case in point is the Tehri PSP, which has witnessed significant cost and time overruns.
Andhra Pradesh
Andhra Pradesh too is looking to tap its PSP potential (42.02 GW across 49 projects). The state has also set a target to achieve a production capacity of 0.5 million tonnes per annum (mtpa) of green hydrogen and 2 mtpa of green ammonia over the next five years. In the past, the state had announced a dedicated policy for these segments. Overall, the state aims to set up 72 GW of renewable energy capacity by 2030. As of October 2024, its total renewable energy capacity stood at 11,095.24 MW, comprising 4,096.65 MW of wind power, 4,650.89 MW of solar power, 574.39 MW of biopower, 163.31 MW of small-hydro power and 1,610 MW of large hydro. Its solar capacity encompasses ground-mounted solar (4,337.67 MW), rooftop solar (224.88 MW) and off-grid solar (88.34 MW), and its biopower capacity consists of biomass power/bagasse cogeneration (378.1 MW), biomass cogeneration (non-bagasse) (113.57 MW), WtE (53.16 MW) and off-grid WtE (29.56 MW).
Madhya Pradesh
As of October 2024, the total renewable energy capacity in the state stood at 9,586.63 MW, comprising 2,844.29 MW of wind power, 4,248.69 MW of solar power, 134.94 MW of biopower, 123.71 MW of small-hydro and 2,235 MW of large hydro. Its solar capacity consists of ground-mounted solar (3,772.99 MW), rooftop solar (423.66 MW) and off-grid solar (102.04 MW) while its biopower capacity comprises biomass power/bagasse cogeneration (92.5 MW), biomass cogeneration (non-bagasse) (14.85 MW), WtE (15.4 MW) and off-grid WtE (12.19 MW).
Madhya Pradesh has a solar energy potential of 61 GW and a wind energy potential of 11 GW. The state government has set ambitious investment targets for the renewables sector and plans to invest Rs 500 billion in renewable energy development by 2027. Further, the state aims to produce 30 per cent of its electricity from renewable sources by the end of financial year 2027, and 50 per cent by 2030.
Telangana
As of October 2024, Telangana’s total renewable energy capacity stood at 7,688.34 MW, consisting of 128.1 MW of wind power, 4,842.1 MW of solar power, 221.67 MW of biopower, 90.87 MW of small-hydro power and 2,405.6 MW of large hydro. The solar capacity comprises ground-mounted solar (4,360.49 MW), rooftop solar (472.9 MW) and off-grid solar (8.71 MW). Its biopower capacity encompasses biomass power/bagasse cogeneration (158.1 MW), biomass cogeneration (non-bagasse) (3.3 MW), WtE (45.8 MW) and off-grid WtE (14.47 MW).
At the fourth edition of RE-INVEST 2024, Bhatti Vikramarka, deputy chief minister of Telangana, said that the state’s goal was to add 40 GW of renewable capacity by 2035 (almost five times the current capacity), with the state’s solar potential and wind potential at 150 metres being about 26.4 GW and 54 GW respectively. Going forward, the state also aims to harness green hydrogen, mini-hydro and geothermal sources to meet its clean energy targets.
Uttar Pradesh
With an installed renewables capacity of 6,103.07 MW (comprising 3286.98 MW of solar power, 2,265.39 MW of biopower, 49.1 MW of small-hydro and 501.60 MW of large hydro), Uttar Pradesh is the final state on the top 10 list. Its solar capacity comprises ground-mounted solar (2,700.02 MW), rooftop solar (271.93 MW) and off-grid solar (315.03 MW). The state holds the second position in the bioenergy space after Maharashtra, owing to the abundance of sugar industries in the area. Its biopower capacity comprises biomass power/bagasse cogeneration (1,985.5 MW), biomass cogeneration (non-bagasse) (165.26 MW) and off-grid WtE (114.63 MW).
Uttar Pradesh has chalked out ambitious plans across various clean energy segments. Going forward, the state aims to install compressed biogas plants with a total capacity of 1,000 tonnes per day (tpd), establish biocoal plants with a cumulative capacity of 4,000 tpd, and set up bioethanol and biodiesel plants with a combined capacity of 2,000 kilolitres per day. In addition, Uttar Pradesh New and Renewable Energy Development Agency has identified 33 potential locations for pumped storage facilities across the state, with a combined energy storage potential ranging from 186.96 GWh to 200.42 GWh. The state also has an ambitious target of achieving an annual production of 1 million metric tonnes of green hydrogen by 2029. In the solar space, solar irrigation, open access sale of solar power and floating solar are
expected to be the trendsetters in the coming years.
Outlook
According to the Central Electricity Authority’s National Electricity Plan (NEP), India’s total installed renewable power capacity is targeted to reach 507,411 MW by the end of 2031-32. This means the country needs an additional 300 GW, that is, a growth rate of 150 per cent over the next seven years to achieve this level. This rate of increase may seem ambitious but, over the past decade (2014-24), too, renewables capacity has grown by 165 per cent. To achieve the target for 2031-32, around 43 GW of renewable capacity addition will be required per annum. The government’s planned bidding trajectory of 50 GW of renewables till 2027-28 is in sync with this.
Given that the top 10 states ranked above account for the lion’s share (almost 90 per cent) in the current installed renewable energy capacity, their continued growth will be key for the country to meet its ambitious renewable energy targets. Going forward, the main goal for all the states should be to ensure capacity addition while maintaining transparency and adhering to corporate governance norms. Overall, the vision of the states should align with the central government’s plans for the clean energy transition.
