Solar and Wind: The Powerhouses of India’s Renewable Energy Capacity Addition
In a momentous stride towards sustainability, India’s renewable energy sector has achieved a remarkable feat. It constituted a staggering 71% of the country’s power generation capacity addition in the fiscal year 2023-2024, as revealed by the latest edition of the CEEW Centre for Energy Finance (CEEW-CEF) Market Handbook. With the country’s total installed energy capacity reaching 442 GW, renewable energy accounted for approximately 144 GW, while hydro contributed around 47 GW. This monumental shift marks the first time coal/lignite’s share in India’s total installed capacity has fallen below 50%, a testament to India’s commitment to a greener future.
Record RE Auctions and Innovative Formats
Solar power, encompassing grid-scale and rooftop installations, spearheaded India’s renewable energy capacity addition, representing approximately 81% of the total RE addition in FY24. Additionally, wind capacity nearly doubled, reaching 3.3 GW compared to 2.3 GW in the previous fiscal year. Notably, nuclear capacity, with a contribution of 1.4 GW, was added for the first time since FY17. The report also underscores a record-breaking performance in RE auctions, with approximately 41 GW of auctioned capacity in FY24. Furthermore, innovative power procurement formats, including wind-solar hybrids (a combination of wind and solar power generation in a single project) and renewable energy with storage components (renewable energy projects with energy storage systems to ensure continuous power supply), accounted for a significant portion of the auctioned capacity, signaling a growing shift towards sustainable energy practices.
Foreign Investment Surpasses USD 2 Billion
Gagan Sidhu, Director of CEEW-CEF, highlighted the significant role of foreign direct investment (FDI) flows towards non-conventional energy, which surpassed USD 2 billion for the second consecutive year. This substantial foreign investment not only indicates growing confidence in India’s renewable energy sector but also reassures us about its continued growth and development, making it a promising sector for global investors.
India’s remarkable progress in renewable energy capacity addition not only underscores its commitment to sustainable development but also positions it as a global leader in the transition towards green energy. This transition is not just about India’s energy security, but it also significantly contributes to its climate change commitments under the Paris Agreement. With continued investments, innovative procurement strategies, and supportive policies, India is poised to accelerate its renewable energy transition and pave the way for a cleaner, greener future, inspiring other nations to follow suit.
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