Infomerics Ratings, a leading credit rating agency, has released an insightful report titled ‘India’s Renewable Energy Outlook: Navigating the Future,’ shedding light on India’s remarkable strides in the power sector over the past nine years. The report focuses on the country’s commitment to reliable, affordable, and sustainable energy provision.
India has solidified its position as a global leader in renewable energy adoption, currently ranking fourth globally in installed capacity, including wind and solar power. An impressive 43% of India’s total electricity capacity is now derived from non-fossil energy sources as of July 2023.
The report underscores India’s ambitious goal of achieving 500 GW of renewable energy capacity by 2030, aligning with its commitment under the Paris Agreement. By 2023, the nation had already surpassed the 170 GW mark, showcasing substantial progress.
Examining state-wise renewable electricity generation, the report identifies Tamil Nadu, Karnataka, and Gujarat as leaders, benefitting from investments and favorable geographical conditions. On the flip side, Tripura, Mizoram, and Jharkhand face challenges due to limited resources, infrastructure, and regulatory hurdles.
Globally, the renewable energy sector is experiencing unprecedented growth, with a projected addition of 107 GW in 2023. The report anticipates sustained momentum in 2024, driven by expanding policy support, growing energy security concerns, and improved competitiveness against fossil fuel alternatives.
Infomerics Ratings predicts a promising outlook for India’s renewable energy sector, estimating an investment of ₹137,500 crore (approximately USD 16.5 billion) in 2024. The report places solar energy at the forefront, with wind power expected to make a comeback. The Green Hydrogen Mission further contributes to sector growth, supported by consistent policies at both central and state levels.
Vanessa Nakate’s poignant words, “Climate change is more than statistics, it’s more than data points,” resonate in the report, emphasizing the human impact. Infomerics Ratings positions itself as a reliable source in navigating the intricate landscape of India’s renewable energy future.
Key highlights from the report include India’s progress toward the ambitious target of 500 GW by 2030, with over 170 GW achieved by 2023. The country stands as the fourth-largest globally in Renewable Energy Installed Capacity, experiencing significant growth in solar and wind energy.
The report details a steady increase in the installed capacity of renewable energy sources from 131,783 MW in September to 138,444 MW in November 2023. Total renewable energy generation reached 20,707.04 MW in November 2023, reflecting a diverse and growing portfolio in India’s pursuit of sustainable energy.
In the 2022-23 period, solar power accounts for the largest share at 53.36%, followed by wind power at 34.06%, with small hydro power and biomass-based electricity contributing 3.95% and 8.19%, respectively. Rajasthan, Gujarat, and Tamil Nadu lead the states in renewable electricity generation.
Globally, renewable capacity additions are set to soar by 107 GW in 2023, marking the largest absolute increase ever. The Government of India actively promotes various forms of renewable energy to achieve the goal of 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
Despite notable growth, the Indian renewable energy industry faces challenges such as policy and regulatory instability, delays in project approvals, and unclear guidelines, creating uncertainty for investors. The report encourages a sustained focus on addressing these challenges to ensure the continued success of India’s renewable energy journey.
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