Solar Energy Possibilities in India
India This Decade
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| Launched: Nov 14, 2023 | |
| indiathisdecade@gmail.com | Season: 1 Episode: 11 |
India's solar panel and electrification industry is on the cusp of remarkable growth in the upcoming years. As of 2020, solar power only accounted for less than 4% of India's electricity generation, while coal held a significant share of close to 70%. However, by 2040, these figures are projected to converge around the low 30%s, indicating a momentous shift towards solar power. This transformation is primarily driven by India's ambitious policy objectives, particularly the goal of achieving 450 GW of renewable capacity by 2030. Additionally, the extraordinary cost competitiveness of solar power is expected to outperform existing coal-fired power by 2030, even in conjunction with battery storage. At the 26th Conference of the Parties (COP 26) to the UN Framework Convention on Climate Change, the Prime Minister further announced a revised target of 500 GW of non-fossil capacity by 2030.
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India's solar panel and electrification industry is on the cusp of remarkable growth in the upcoming years. As of 2020, solar power only accounted for less than 4% of India's electricity generation, while coal held a significant share of close to 70%. However, by 2040, these figures are projected to converge around the low 30%s, indicating a momentous shift towards solar power. This transformation is primarily driven by India's ambitious policy objectives, particularly the goal of achieving 450 GW of renewable capacity by 2030. Additionally, the extraordinary cost competitiveness of solar power is expected to outperform existing coal-fired power by 2030, even in conjunction with battery storage. At the 26th Conference of the Parties (COP 26) to the UN Framework Convention on Climate Change, the Prime Minister further announced a revised target of 500 GW of non-fossil capacity by 2030.
India's solar panel and electrification industry is on the cusp of remarkable growth in the upcoming years. As of 2020, solar power only accounted for less than 4% of India's electricity generation, while coal held a significant share of close to 70%. However, by 2040, these figures are projected to converge around the low 30%s, indicating a momentous shift towards solar power. This transformation is primarily driven by India's ambitious policy objectives, particularly the goal of achieving 450 GW of renewable capacity by 2030. Additionally, the extraordinary cost competitiveness of solar power is expected to outperform existing coal-fired power by 2030, even in conjunction with battery storage. At the 26th Conference of the Parties (COP 26) to the UN Framework Convention on Climate Change, the Prime Minister further announced a revised target of 500 GW of non-fossil capacity by 2030.
The Indian government has cultivated a competitive ecosystem for renewable energy by providing strong incentives for capacity expansion and fostering policies conducive to research-led innovation. The National Solar Mission, launched in 2010, has played a pivotal role in propelling the rapid growth of solar energy in India over the past 15 years. In the fiscal year 2022, the government identified 28 Central Government policies that subsidize renewable energy, amounting to INR 11,529 crore (USD 1.5 billion). This includes a one-time capital infusion of INR 2,500 crore (USD 0.3 billion) into the Indian Renewable Energy Development Agency (IREDA) and the Solar Energy Corporation of India (SECI) to enhance their operations in the renewable sector. The government has also permitted Foreign Direct Investment (FDI) up to 100% under the automatic route, introduced policies to establish Ultra Mega Renewable Energy Parks, and implemented Standard Bidding Guidelines for tariff-based competitive bidding for grid-connected projects.
