India’s Renewable Energy Landscape: Comprehensive Overview of Generation and Funding (2023-24)

In a recent update from the Union Minister for New & Renewable Energy and Power, comprehensive details regarding renewable energy generation across the country have been disclosed. According to data sourced from the Central Electricity Authority (CEA), a breakdown of renewable energy generation, both state-wise and source-wise, for the year 2023-24 (Up to Dec 2023)has been provided.

In the fiscal year 2023-24 up to December, India’s renewable energy landscape witnessed substantial contributions from various sources. Solar energy generation stood impressively high at 84,319.58 MW, while wind energy added significantly with 69,824.59 MW. The total renewable energy generation, encompassing various sources like biomass, bagasse, small hydro, and others, amounted to a noteworthy 172,488.40 MW. These figures underscore India’s continued progress in diversifying its energy mix and embracing sustainable solutions to meet its growing power demands.

The Ministry has provided details of funds allocated and utilized for promoting renewable energy in India from the fiscal year 2019-20 up to January 2024. The allocation for each year, as per revised estimates, along with the actual expenditure, has been disclosed. In the effort to calculate the cost per unit of renewable energy, five key components are considered, including depreciation, interest on long-term debt, interest on working capital, operation and maintenance expenses, and return on equity. This calculation is crucial for determining the levelized tariff over the project’s lifespan, typically 25 years for solar and wind projects. Project costs are typically financed through a combination of debt and equity, with a ratio of 70:30 as per tariff orders. The process for determining competitive prices involves a transparent bidding process conducted by designated implementing agencies.