India’s renewable energy sector remains one of the world’s biggest & most competitive markets in price parity basis. As of November 27, 2020, 38% of the country’s installed electricity generation capacity comes from renewable sources. The sector has had more than $42 billion of investment since 2014 and around $7 billion of FDI between April 2000 and June 2018. India’s Nationally Determined Contributions (NDC) at the Paris UNFCCC Conference Of Parties (COP) in 2015 imply 350 GW of renewable energy capacity. In September last year, at the United Nations Climate Action Summit, Prime Minister Narendra Modi had stated growing the renewable energy target to 450 GW by 2030.
Speaking at a G20 virtual summit last month, Modi said that India has embraced low-carbon and climate-resilient development practices. In fact, the country has also initiated a coalition of 121 countries – the International Solar Alliance – where the Prime Minister says the alliance was spending billions of dollars on training people and making research & development in renewable energy a focus.
Additionally, battery technology is swiftly arriving at a stage where it provides a solution to a significant issue. India is doing well out of such technological developments because it is quickly bringing in generating capacity as it progresses, giving a miss to several pricy adjustments as developed countries substitute one energy technology with another. What’s more, it also has huge, sunny and thinly-populated lands for solar arrays. In truth, R K Singh, Power and New & Renewable Energy Minister, India, said in July this year that India will have around 60% of its installed electricity generation capacity from clean sources by 2030 and that by 2030, 450 GW of power generation capacity would come from renewables, like solar and wind.
However, we have to consider the fact that the COVID-19 pandemic has also affected India’s renewables installation. India needs to move its focus from the market to manufacturing and while the renewable energy segment in the country has grown to become strong in several aspects in the past decade, it also needs to defeat a few challenges to keep its energy passage steady, like transmission difficulties, stressed power utilities, the reliance on Chinese imports, etc. We also need to keep in mind another factor – energy storage. Sources like solar and wind are renewable, but they do not guarantee an endless power stream. Keeping this in mind, if renewables are to be pivotally infused in India’s energy sector, then energy storage will be extremely necessary.
India’s renewables target of 450 GW will transform its energy setting considerably. The sector certainly requires a stable flow of funds in the years going forward and also, public acknowledgement of obtaining land for big projects, augmenting domestic manufacturing of solar panels & wind turbines, etc is a vital point that can enable boosted advancement of the segment.