Introduction
India has witnessed a tremendous rise in energy consumption in recent years, driven by rapid economic growth and a growing population. To address this demand and balance the pillars of profitability and sustainability, India has set ambitious targets to increase the share of renewable energy in its energy mix, with the goal of achieving 450 GW of renewable energy capacity by 2030. Renewable energy capacity in India increased by 250% between 2014 and 2021, with the non-conventional energy sector receiving FDI inflow of US$ 12.57 billion between April 2000-June 2022. This rise of green energy has created significant investment opportunities for businesses and investors looking to tap into the growing demand for green energy solutions in India.
Sustainability as a way of life is integral to India’s cultural ethos. An eco-conscious global partner gearing to touch the $10-trillion mark by 2035, India is focused on creating a sustainable and inclusive future. The deployment of renewable energy in India is primarily aimed at advancing economic development, enhancing energy security, facilitating access to energy, and mitigating the impact of climate change.
With some parts of the country receiving over 300 days of sunshine every year, India’s natural location along the equator lends it a strategic advantage in solar energy production. This advantage extends to wind energy projects, with India’s 8,000-kilometre coastline. Additionally, India’s vast hydropower potential is estimated at over 100,000 MW. These natural bounties have provided India with a unique opportunity to lead the way in renewable energy production and create a green economy.
India has a total installed generation capacity of 408.71 GW, of which the share of renewable energy is 42.26%. The 172.72 GW of capacity from non-fossil fuel sources installed in the country includes 119.09 GW RE, 46.85 GW Large Hydro and 6.78 GW Nuclear Power capacity.
A recent report by the Institute for Energy Economics and Financial Analysis revealed that India witnessed a record-high investment in renewable energy in FY22, with a whopping $14.5 billion invested, depicting a significant increase of 125% from the previous year. Furthermore, this represents a 72% increase from the pre-pandemic period of FY 2019-20. The country is poised to attract over $ 20 billion in renewable energy investments in the year 2023 alone.
Government Policies and Initiatives
In accordance with the five nectar elements, the ‘Panchamrit’ of India’s climate action, the nation seeks to pursue an inclusive and sustainable growth trajectory by ensuring responsible consumption and sustainable resource management. As chair of the G20, India will discernibly push for the provision of finance and technology as critical enablers for achieving the climate goals set by the Paris Accord.