India’s Renewable Surge: Powering Towards A Greener Future With Record Additions And Investments In 2024

India’s power sector witnessed significant growth in the fourth quarter of 2024, with an addition of 9,307 megawatts (MW) in power generation capacity. Renewables dominated the expansion, accounting for 85.8% of the new installations. The country’s cumulative power capacity reached 462 gigawatts (GW) by the end of December, with renewables contributing 209.4 GW or 45.3% of the total. Solar and wind energy led the charge, comprising 76.3% and 8.6% of the renewable additions, respectively. Meanwhile, coal-based power contributed 14.2% of the new capacity, with key projects like the Ghatampur and Jawaharpur thermal plants commencing operations.

Throughout 2024, India added 33,922MW of new power capacity, an 88.9% increase from 2023. The growth was primarily driven by a surge in solar installations, which more than doubled from 10,016MW in 2023 to 24,546MW in 2024. Falling module prices, increased auctions, and regulatory certainty following the implementation of the Approved List of Models and Manufacturers were key enablers. Additionally, biomass power capacity saw a nine-fold increase, supported by a revised policy mandating 5% biomass co-firing in thermal plants.

Among the states, Rajasthan and Gujarat emerged as leaders in renewable capacity additions. Rajasthan added 2,266MW in the fourth quarter, with major projects including ReNew Power’s 750MW solar plant and ACME’s 1,023MW solar installations. The state also introduced an Integrated Clean Energy Policy aimed at achieving 125GW of renewable capacity by 2029-30. Gujarat followed closely with 1,958MW of new capacity, including significant projects by Ambuja Cement and NTPC Renewable Energy.

Renewable energy generation increased by 21.4% year-over-year, reaching 82.71 billion units in the fourth quarter. Fossil fuel-based power generation remained flat at 326.31 billion units, with its share in total generation declining from 80.06% to 77.02%. Nuclear power generation also grew by 11.5%, following the addition of 700MW in capacity during the year.

Investment in India’s renewable energy sector surged in the fourth quarter, more than doubling from $1.75 billion in 4Q 2023 to $3.73 billion. However, full-year investments stood at $10.1 billion, marking a decline of 23.7% compared to 2023 and 33.6% below the all-time high of $15.2 billion recorded in 2022. Factors such as high interest rates, competitive tariffs, and economic uncertainty contributed to the slowdown, but expectations of a stable policy environment and declining interest rates could spur investment in 2025.

Several major investment deals were announced during the quarter. Tata Power committed $13.8 billion for renewable projects in Rajasthan, while Avaada Group pledged $11.5 billion for solar, wind, and green hydrogen initiatives. JSW Neo Energy acquired a 4.6GW renewable platform for $1.47 billion, bolstering its market presence. Meanwhile, Gentari, the renewable arm of Petronas, acquired 2.2GW of green assets for $900 million, doubling its renewable portfolio in India. Other key developments included NTPC Green Energy’s $650 million bid for Ayana Renewable Power and NHPC’s $636 million agreement with the Bihar government for solar and green hydrogen projects.

Despite some setbacks in investment flow, India’s renewable energy sector remains on a strong growth trajectory, driven by policy support, technological advancements, and corporate adoption of clean energy solutions. The coming years will be critical in determining the pace of the country’s energy transition toward its 500GW non-fossil fuel capacity target by 2030.