Expanding India's Renewable Energy Capacity: Ambitious Goal to Reduce Emissions by Half by 2030

India, the world's third-largest emitter of greenhouse gases, is poised to become the largest source of demand growth for fossil fuels over the coming decade. However, the Indian government is taking bold steps to change this trajectory, with a focus on renewable energy.

The government's strategy is to sharply increase domestic capacities to manufacture solar modules, battery storage systems, and electrolyzers for making renewable hydrogen. This strategy is part of India's vision to become energy self-sufficient by 2047, the centenary year of India's independence.

To achieve this goal, India's renewable energy sector is growing rapidly. The government's implementation of a production-linked incentive (PLI) scheme is helping the PV manufacturing industry to grow rapidly. The results of both recent tranches of the PLI scheme show an increase of 51.6 GW of module capacity and at least 27.4 GW of integrated 'polysilicon-to-module' capacity in India over the next three to four years.

India is on course to have roughly 100 gigawatts of annual solar modules production capacity by 2026. This year, India is set to install 16.8 GW of new solar capacity, and the Indian government will begin accepting bids for 50 GW of new renewable energy capacity additions per year.

However, to meet its climate goals, India's share of clean power generation needs to more than double. As of the end of February 2023, India had installed 168.96 GW of cumulative renewable energy capacity. While this is a significant achievement, it is still less than half of what's needed.

The government is offering incentives, including grants for domestic production of solar modules and other green components. The government is taking steps to increase demand for locally made solar PV modules by introducing a domestic content requirement (DCR) in several support schemes.

Despite these efforts, coal remains the dominant source of electricity in India, with a share of over 73%. India's new coal build out is increasing despite renewables having fallen far below the costs of conventional alternatives. By the end of this decade, India's greenhouse gas pollution may exceed that of the European Union.

The federal Power Secretary acknowledged that the share of clean sources in India's power generation capacity needs to surge to 90% by 2047. India's sector is on track to produce above 110 GW of solar module capacity over the next three years. However, only 15.77 gigawatts of wind and solar were installed last year, less than half what's needed.

The Indian government has announced plans to issue tenders for 250 GW of new renewable capacity by March 2028. The government's favourable policy environment is helping the PV manufacturing industry to grow rapidly, and India's sector is set to produce above 110 GW of solar module capacity over the next three years.

While India's renewable energy push is ambitious, it is necessary to meet its climate goals and strive towards energy self-sufficiency. The government's efforts to increase domestic production and demand for renewable energy are a step in the right direction, and the results of these efforts will be closely watched by the global community.

Expanding India's Renewable Energy Capacity: Ambitious Goal to Reduce Emissions by Half by 2030