Investments in the renewable energy sector to cross US$ 15 billion in 2022

The government aims to reach an ambitious target of 175 GW of installed renewable capacity in 2022.

December 27, 2021

Currently, India has 150 GW of installed renewable energy capacity.

In 2020, the country’s new investment in the clean energy sector amounted to US$ 6.2 billion.

By 2030, the country aims to reach a target of 500 GW of installed renewable energy capacity.

The GOI has been making continued efforts to further the investments in the sector through various PLI schemes.

With an investment of over US$ 15 billion, a boom is anticipated in the country’s renewable energy sector with the GOI’s focus on electric vehicles, green hydrogen, production of solar equipment and reaching the ambitious 175 GW renewable capacity target (with a current installed renewable energy generation capacity of around 150GW) in 2022. Solar energy would constitute 100 GW, while 60 GW would be from wind energy, 10 GW from bio-power and 5 GW from small hydro power projects. Union Minister for Power and New and Renewable Energy Shri R K Singh revealed in a statement to the PTI that 63 GW of renewable energy capacity was under installation and it is expected to be completed by next year. By 2030, the country aims to reach a target of 500 GW of installed renewable energy capacity. This development brings a wave of relief to the sector which had been majorly impacted, especially in the implementation of various renewable energy projects owing to the lockdown restrictions across the country to control the spreading of infections.

In 2020, the country’s new investment in the clean energy sector amounted to US$ 6.2 billion, according to reports by Bloomberg New Energy Finance (BNEF). Shri Singh mentioned that the government has opened the gates for the installation and sale of RE through open access, enabling any individual or organization to set up an RE capacity and sell it, in a bid to boost the investments in the sector. A PLI scheme for the ‘National Programme on High Efficiency Solar PV Modules’ was introduced by the GOI at an estimate of US$ 600.6 million (₹ 45 billion) to support and encourage the production of high efficiency solar photo voltaic (PV) modules. It plans to increase the allocation of the scheme to US$ 3.2 billion (₹ 240 billion).

The country has 52 solar parks which have been sanctioned with a cumulative capacity of 37.92 GW in 14 states as on November 30 and solar power projects with an aggregate capacity of around 9.2 GW have already been commissioned in these parks. Phase-II of the rooftop solar programme has a total of 5.7 GW of installed solar capacity in the same period. With a goal of making India a global hub for green hydrogen production and exports, the GOI has sanctioned around 8.2 GW projects under the 12 GW grid-connected solar PV power projects by Central Public Sector Undertakings (CPSUs) with domestic cells and modules.

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