Comprehensive Overview of NITI Aayog’s Policy Paper: RPO Targets and State-Wise Renewable Energy Planning

India has set an ambitious path to enhance its renewable energy capacity in a bid to meet the updated Nationally Determined Contributions (NDCs) and to pave the way for resilient, inclusive, and sustainable growth. This vision is laid out in a recent policy paper by NITI Aayog, authored by Venugopal Mothkoor, Dr. Anjali Jain, and Rajnath Ram, which outlines the state-wise planning and capacity requirements to achieve these targets by 2030.

The Ministry of Power has mandated that each state must fulfill a specified percentage of its electricity consumption from renewable energy sources, escalating from 24.3% in 2023 to 43.3% by 2030. The policy paper highlights the importance of these Renewable Purchase Obligations (RPOs) in driving the country towards its climate action goals. The primary entities responsible for meeting these obligations are the DISCOMs (Distribution Companies) in each state.

India’s goal is to increase the share of non-fossil fuel-based power capacity to 50% by 2030. However, the variability in spatial and temporal potential of renewable energy sources presents significant challenges. States may experience a surplus or deficit in renewable energy potential to meet their annual obligations. The study, supported by the Central Electricity Authority (CEA) and the Ministry of New and Renewable Energy (MNRE), offers a detailed analysis of the technical potential that can be harnessed in each state to meet their RPOs. It also outlines the capacity that deficit states need to procure from RE-rich states and the storage requirements necessary to balance the grid.

The findings show that 21 states can meet their RPO targets by mobilizing their internal potential, while nine states will need to procure additional renewable energy from other states. For instance, states like Rajasthan, Uttarakhand, Himachal Pradesh, and Jammu and Kashmir can meet their targets independently. In contrast, states such as Punjab, Haryana, Delhi, and Uttar Pradesh will need to engage in procurement from surplus states to meet their renewable energy requirements.

As of July 2023, India’s total installed renewable energy capacity stood at 177.74 GW. The paper estimates that an additional 269.79 GW needs to be mobilized within the states’ potential, and 69.81 GW must be procured from other states, resulting in a total required capacity of 517.34 GW by 2030. This includes 104.16 GW of wind, 64.88 GW of hydro, 333.38 GW of solar, and 14.92 GW of bioenergy.

Storage is a critical component of this plan to manage the intermittent nature of renewable energy sources. The study estimates the need for 41.13 GW of 5-hour Battery Energy Storage Systems (BESS) and 18.6 GW of pumped hydro storage by 2030. These storage solutions are essential for balancing the grid and ensuring a reliable supply of electricity from renewable sources.

The investment required to achieve these targets is substantial. The policy paper estimates that the total funding requirement for the installation of renewable energy capacity and storage ranges from INR 18.55 lakh crore to INR 24.9 lakh crore. This investment is necessary to cover the costs of solar, wind (both onshore and offshore), hydro, bioenergy, pumped hydro, and battery storage.

This comprehensive policy paper by NITI Aayog provides a roadmap for policymakers at both the central and state levels. It underscores the importance of coordinated efforts to harness state-specific renewable energy potential, reduce transmission costs, and ensure sustainable growth. The detailed state-wise analysis and clear targets serve as a valuable guide for stakeholders involved in India’s energy transition.

The policy paper’s findings emphasize the need for robust planning, significant investments, and inter-state cooperation to meet the RPO targets and contribute to India’s climate commitments. By achieving these ambitious goals, India can ensure a sustainable and inclusive path to development, aligning with its vision of becoming a developed nation by 2047.