December 29, 2023
The power generation capacity from non-fossil fuels is likely to reach 65% by 2030
India anticipates the addition of 25 GW of renewable energy capacity in 2024
India is increasingly emphasising green hydrogen to reduce reliance on fossil fuels
The installed renewable energy capacity, excluding large hydro, is anticipated to reach about 170 GW by March 2025
India is poised to experience a remarkable 83% surge in investments in renewable energy projects, reaching approximately US$ 16.5 billion in 2024 as the country intensifies its focus on an energy transition to curb carbon emissions, as per the Ministry of Power estimates. This aligns with India’s ambitious target of achieving 500 GW of renewable energy by 2030 and its commitment to reducing overall power generation capacity from fossil fuels to less than 50%. The country has also pledged to achieve net-zero emissions by 2070.
Union Power and New & Renewable Energy Minister R K Singh has consistently mentioned that the power generation capacity from non-fossil fuels is likely to reach 65% by 2030, surpassing the set target of 50%. Singh stated that India anticipates the addition of 25 GW of renewable energy capacity in 2024, involving an investment of INR 1,37,500 crore (about US$ 16.5 billion), exceeding the 13.5 GW and INR 74,250 crore (nearly US$ 9 billion) seen in 2023.
In addition to solar and wind energy, India is increasingly emphasising green hydrogen to reduce reliance on fossil fuels, particularly diesel, commonly used in commercial vehicles for passenger and freight services. The National Green Hydrogen Mission, approved in January, aims to make India a global hub for green hydrogen manufacturing. The mission envisions developing 5 million metric tonnes per annum of green hydrogen production capacity by 2030 and initially includes establishing two green hydrogen hubs.
Industry leaders and experts express optimism about India’s commitment to environmental sustainability, particularly in the green hydrogen sector. The outlook for renewable energy in 2024 is positive, with expectations of continued investment and technological advancements, including renewable energy and battery storage. The comprehensive vision outlined in the Central Electricity Authority (CEA) report sets ambitious targets for solar, wind, and hydro installations, offering significant investment opportunities in the sector.
The installed renewable energy capacity in India, excluding large hydro, is anticipated to reach about 170 GW by March 2025, up from 132 GW as of October 2023. The trajectory includes a significant improvement in tendering activity, with over 16 GW projects bid out and another 17 GW bids underway in the current fiscal year, aligning with the government’s annual bidding goal of 50 GW, announced in March 2023.
Source: Economic Times