India’s Renewable Energy Sector Sees Significant Growth

India’s renewable energy sector has experienced substantial growth, contributing to a notable increase in the share of clean energy in the country’s overall energy mix, as reported in the 38th edition of the TERI Energy & Environment Data Diary and Yearbook (TEDDY). The Energy and Resources Institute (TERI) released this flagship publication on Tuesday, providing insights into the nation’s energy landscape.

According to the TERI data book, the share of renewable energy, including wind, solar, and other renewable sources, rose from 27.5% in 2022 to 30.1% in 2023. This shift is accompanied by a decrease in the share of coal-based power plants from 51.1% to 49.3%, reflecting a notable change in the energy supply mix. The book, which compiles information from various government and non-government sources, tracks multiple energy sectors, including coal, petroleum, natural gas, and renewables.

India, in its updated nationally determined contribution (NDC) to the United Nations Framework Convention on Climate Change submitted in 2022, aims to achieve 50% of installed power capacity from non-fossil sources. The Ministry of New and Renewable Energy states that India’s current non-fossil installed capacity is around 43% of the total installed capacity.

While the report highlights positive trends in renewables, the chapter on air pollution presents concerning statistics. The Global Burden of Disease study attributes 1.7 million deaths to air pollution in India in 2019, with a World Bank study estimating that health damages from PM 2.5 exposure cost 10.6% of the country’s GDP annually.

Solar tariffs in India have witnessed a downward trend due to falling equipment prices and competitive bidding. TERI reports an average decrease of 26% in solar tariffs between October 2022 and March 2023, ranging between ₹2.51/kWh and ₹2.91/kWh. Leading states in renewable energy capacities include Rajasthan, Gujarat, Tamil Nadu, Karnataka, and Maharashtra. Gujarat boasts the highest cumulative rooftop capacity (approximately 2.2 GW), with 7.6 GW of rooftop system capacity installed in India in 2022-23.

India ranks fourth globally in renewable energy installed capacity, following China, the US, and Brazil, and holds the third position in renewable energy attractiveness after China and the US. The National Institute of Solar Energy estimates India’s solar power potential at over 750 GW. As of December 2021, India had a cumulative installed solar capacity of 55 GW.

The International Energy Agency (IEA) projects that India’s primary energy consumption will double to 1123 MTOE by 2040, driven by an expanding gross domestic product. The largest share of energy consumption (41.16%) comes from the industrial sector.

This growth underscores India’s commitment to renewable energy expansion, aligning with global efforts to address climate change and promote sustainable energy sources.

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