Professional Documents
Culture Documents
Renewable Energy December 2023
Renewable Energy December 2023
Renewable Energy December 2023
December 2023
For updated information, please visit www.ibef.org
Table of Contents
Executive Summary 3
Advantage India 4
Strategies Adopted 13
Growth Drivers 16
Opportunities 22
Appendix 28
2
Executive summary
Ambitious targets
• India has set a target to reduce the
carbon intensity of the nation’s
Immense growth potential economy by less than 45% by the
end of the decade, achieve 50%
• India has low conventional energy
cumulative electric power installed
resources compared to its required
by 2030 from renewables, and
energy needs driven by a huge
achieve net-zero carbon emissions
population and a rapidly increasing
by 2070.
economy. However, India can harness
the huge potential of solar energy as it • In FY23, renewable energy
receives sunshine for most of the year. dominated India's power generation
It also has vast potential in the capacity addition- of the 17 GW
hydropower sector which is being added, 97% came from renewables.
explored across states, especially in the
northeast.
• As of November 2023, Renewable Increasing investment
energy sources, including biomass,
waste to power and waste to energy, • The non-conventional energy space in
have a combined installed capacity of India has become highly attractive for
132.69 GW. investors and received an FDI inflow
• India is the only country among the G20 of US$ 15.36 billion between April
countries that is on track to achieve its 2000-September 2023.
targets under the Paris Agreement. • More than Rs. 5.2 lakh crore (US$ 70
• India's installed renewable energy billion) has been invested in India’s
capacity is expected to increase to renewable energy sector since 2014.
about 170 GW by March 2025 from the • India ranked third on the EY
level of 132 GW as of October 2023, Renewable Energy Country Attractive
according to research agency ICRA. Index 2021.
3
Advantage India
4
Advantage India
5
Market Overview and Trends
6
Renewable Energy Sources
Renewable Energy
Sources (RES)
Other forms of
Hydro Energy
renewable energy
7
Generation capacity has increased at a healthy pace… (1/2)
94.43
80 87.02 Wind Power
77.64
60 69.02 72.31
44.56
57.24 Bio-Power
40 45.92
20
Small Hydro
0
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24*
▪ The International Energy Agency’s World Energy Outlook projects a growth of renewable energy supply to 4,550 GW in 2040 on a global basis.
▪ Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 15.4% between FY16 and
FY23. India has 125.15 GW of renewable energy capacity in FY23.
▪ As of November 2023, 43.9% of the total power installed capacity is from non-fossil-based sources, which fulfils the target of 40% by the end of
2022.
▪ The country plans to reach 450 GW of installed renewable energy capacity by 2030, with 280 GW (over 60%) expected from solar power.
▪ The ambitious target of 450 GW will provide investment opportunities worth US$ 221 billion by 2030.
Notes: GW- Gigawatt, 1Large Hydro power projects not included as they are not included in renewable energy targets of GOI, *Until November 2023
Source: Central Electricity Authority (CEA), International Renewable Energy Agency (IRENA), MNRE
8
Generation capacity has increased at a healthy pace…(2/2)
▪ Power generation from renewable energy sources (not including Electricity Generation from RES* (billion units)
hydro) stood at 26.65 billion units (BU) in October 2023, up from 30.41
BU in October 2022.
243.60
▪ The electricity generation target (Including RE) for the year 2023-24
has been fixed as 1750 Billion Units (BU). i.e. growth of around 7.2%
200
over the actual generation of 1624.158 BU for the previous year
203.55
(2022-23). The generation during 2022-23 was 1624.158 BU as
compared to 1491.859 BU generated during 2021-22, representing a
170.91
growth of about 8.87% 150
147.25
▪ Off-grid renewable power capacity has also increased.
138.32
126.76
▪ In July 2021, the Ministry of New and Renewable Energy (MNRE) 100
101.84
gave the go-ahead to NTPC Renewable Energy Ltd., a 100%
subsidiary of NTPC, to build a 4,750 MW renewable energy park at
81.51
65.78
the Rann of Kutch in Khavada, Gujarat. This will be India's largest 50
solar park to be developed by the country's leading power producer.
0
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24*
Note: RES - Renewable Energy Source, *Large Hydro power projects not included, SPV - Solar Photovoltaic System, MWeq - Megawatt Equivalent, *Until October 2023
Source: CEA, Make in India, MNRE, Mercom India, News Articles
9
Solar power generation growth likely to outweigh other sources
▪ Due to its favourable location in the solar belt (400 S to 400 N), India
is one of the best recipients of solar energy with abundant availability.
▪ The installed solar energy capacity has increased by 24.4 times in the Top 10 state-wise solar installations in India (April 2023)
last 9 years and stands at 66.7 GW as of May 2023.
▪ In 2022, till November, India has added 12 GW of solar power Rank State Capacity (GW)
capacity.
▪ During June 2023, the capacity addition from solar energy stood at 1 Rajasthan 3395.19
2275.61 MW.
▪ Solar Power generation during June 2023 compared to June 2022 has 2 Karnataka 1405.50
increased by 16.32 % on an All India basis in all states except Andhra
Pradesh, Dadra and Nagar Haveli and Daman and Diu. 3 Gujarat 1147.51
▪ In the first half of 2022, India has saved US$ 4.2 billion in fuel costs
through solar power generation and 19.4 million tonnes of coal. 4 Tamil Nadu 970.18
▪ India has generated 70.24 BU of solar power in the first nine months
of 2022, a 36% YoY increase. 5 Andhra Pradesh 800.19
▪ Delhi’s Indira Gandhi International Airport (IGIA) has become the first
Indian airport to run entirely on hydro and solar power. 6 Telangana 634.38
▪ In November 2021, the government announced future plans to
increase the funding under the PLI scheme for domestic solar cells
7 Maharashtra 502.49
and module manufacturing to RS. 24,000 crore (US$ 3.17 billion) from
the existing Rs. 4,500 crore (US$ 594.68 million) to make India an
exporting nation. 8 Uttar Pradesh 376.83
Source: CEA, Make in India, India Solar Handbook 2017, MNRE, Mercom India, Bloomberg NEF, Solar Energy Corporation of India, News Articles
10
Growth in hydro power
▪ India has overtaken Japan, becoming the nation with the fifth-largest Installed Hydro Capacity (GW)
hydropower production capacity in the world with a total installed base of
over 51.77 GW, and is only behind Canada, US, Brazil and China
according to the International Hydropower Association (IHA). 50.0
46.21 46.51 46.85 46.85 46.88
▪ India has a hydropower potential of around 145 GW, of which over 50 45.29 45.40 45.70
45.0
GW is already being utilised.
▪ According to research by the Council on Energy, Environment and 40.0
Water's Centre for Energy Finance (CEEW-CEF), India's total installed
power generation capacity reached 416 GW in FY23, of which 125 GW 35.0
(30%) came from renewable energy (RE) and 47 GW (11%) comes from
hydro. 30.0
▪ Hydro power projects in India are classified into conventional hydro
25.0
projects and small hydroelectric projects. Small hydro projects are
included in the government’s renewable energy sources (RES) targets.
20.0
▪ Installed capacity from large hydro projects in India increased from 35.9
GW in March 2008 to 46.88 GW as of November 2023, while capacity 15.0
from small hydro plants increased four-fold to 4.98 GW in the same
period. 10.0
▪ A new hydropower policy for 2018-28 has been drafted for the growth of 4.49 4.59 4.68 4.79 4.82 4.92 4.94 4.98
5.0
hydro projects in the country.
▪ On November 19, Prime Minister Mr. Narendra Modi dedicated the 600
0.0
MW Kameng Hydro Power Station in Arunachal Pradesh to the country. 2017 2018 2019 2020 2021 2022 2023 2024*
The project, which covers more than 80 kilometres and costs about Rs.
8,200 crore (US$ 1 billion), is located in Arunachal Pradesh's West Hydro Small Hydro Projects
Kameng District.
11
Strategies Adopted
12
Strategies adopted (1/2)
1 2 3
GREEN CITIES
DEVELOPING RENEWABLE ENERGY HYBRID ENSURING ROUND-THE-CLOCK
▪ In December 2020, the Prime PROJECTS POWER (RTC) SUPPLY
Minister unveiled a plan to
create at least one ‘green’ city in ▪ Hybrid energy projects combine two or more renewable ▪ Renewable resources such as solar
each state that will be powered power sources, such as solar and wind power, to and wind are time-bound and can
by renewable energy sources, reduce inconsistencies and provide stable power only produce power when there is
primarily solar energy. supply. sufficient sunshine and wind.
▪ The houses in these ‘green’ ▪ Round-the-clock (RTC) supply
▪ The wind-solar hybrid model has gained popularity in
cities will have roof-top solar mechanism can overcome these
India since the National Wind-Solar Hybrid Policy 2018.
energy panels and solar street natural limitations by bundling power
Hybrid tenders have received great responses in the
lamps. Additionally, waste-to- from other sources, such as thermal
market, with Adani and ReNew power being key
energy plants will be set up to power, with renewable power
players.
generate renewable energy. sources. Simply put, conventional
▪ More than 12.3 GW of collocated tenders have already and non-conventional resources can
▪ Union Budget 2023-24 envisions
been issued. Other active participants include SB complement each other to provide a
to create sustainable cities of
Energy, Greenko, Tata Power, Vena Energy, JSW sustainable and stable power grid.
tomorrow. To translate this,
Group, ABC Renewables, AMP Energy and ACME. ▪ Such bundled power is supplied to
states and cities will be
encouraged to undertake urban ▪ Wind-solar hybrid projects with capacities of 1,440 MW distribution companies (DISCOMs),
planning reforms and actions to are under implementation in Rajasthan and Tamil Nadu. eliminating the need for DISCOMs to
transform our cities into balance power.
'sustainable cities of tomorrow.’
Source: CEA, Company Website, Livemint, Mercom, GOGLA, News Articles, KPMG
13
Strategies adopted (2/2)
4 5 7
14
Growth Drivers
15
Renewable energy growth drivers
Government commitments
▪ Prime Minister Mr. Narendra Modi initially set the target of installing 175 GW of renewable energy capacity by 2030, but has now increased
it to 450 GW.
▪ US$ 2.4 billion National Hydrogen Mission for production of 5 MMT by 2030 and US$ 36 million additional in budget.
▪ The Indian government's commitment to reaching net-zero emissions by 2070 and increasing its renewable energy target to 500 GW by
2030 at the COP26 summit has provided great support to the industry and spurred unprecedented growth.
▪ In October 2021, the Ministry of Power announced a new set of rules aimed at reducing financial stress for stakeholders and safeguarding
timely cost recovery in electricity generation.
▪ In November 2021, the government announced future plans to increase the funding under the PLI scheme for domestic solar cells and
module manufacturing to Rs. 24,000 crore (US$ 3.17 billion) from the existing Rs. 4,500 crore (US$ 594.68 million) to make India an
exporting nation.
▪ Solar city per state-approved and approved setting up 59 solar parks of 40 GW across the nation. The government is also giving a push to
Floating PV Projects.
Investments
▪ Around US$ 2.8 trillion will be invested in energy in 2023 globally. More than US$ 1.7 trillion is going to clean energy, including renewable
power, nuclear, grids, storage, low-emission fuels, efficiency improvements and end-use renewables and electrification.
▪ In August 2022, Norfund, who manage the Norwegian Climate Investment Fund, and KLP, Norway’s biggest pension company, signed an
agreement to buy a 49% share of a 420 MW solar power plant in Rajasthan for Rs. 2.8 billion (US$ 35.05 million).
▪ Investment in the renewable energy in India reached a record US$ 14.5 billion in FY22, an increase of 125% over FY21.
▪ In 2022, India's renewable energy sector is expected to boom with a likely investment of US$ 15 billion, as the government focuses on
electric vehicles, green hydrogen, and the manufacturing of solar equipment.
16
Renewable energy growth drivers
17
Government policies
18
Union Budget 2022 and 2023
2. NET ZERO EMISSIONS TARGET 3. PUSH GREEN ENERGY, REDUCE
• In Budget 2023-24, Green Growth identified is one of the nodes in the SAPTARISHI
(7 priorities). COAL EMISSIONS
• In Budget 2023-24, pumped storage projects received a push with a detailed • In the Union Budget 2022-23, the allocation for the Solar
framework to be formulated. Energy Corporation of India (SECI), which is currently
responsible for the development of the entire renewable
• In Budget 2023-24, US$1.02 billion (Rs. 8,300 crore) central sector support for ISTS energy sector, stood at Rs. 1,000 crore (US$ 132 million).
infrastructure for 13 GW renewable energy from Ladakh was announced.
• The government is planning the development of Saksham
• Budget 2023-24, Investment of Rs. 20,700 crore (US$ 2.50 billion) including central Anganwadis with clean energy facilities.
support of Rs. 8,300 crore (US$ 1.00 billion) for strengthening of interstate
transmission system for evacuation and Grid Integration of 13 GW renewable energy • Clean energy will reduce pollution levels as villages become
from Ladakh. self-sustainable with their use of clean energy.
• Budget 2022-23 stated plans to provide financial support to allow coal-fired power • This is a forward step towards India’s goal of becoming a net
plants to co-fire biomass pellets at a rate of 5-7%. zero emissions country by 2070.
• This will boost farmers' income and reduce air pollution and curb stubble burning,
which reduces greenhouse gas emissions by 38 million tonnes a year. 4. BUDGET FOR OTHER
ALIGNED MINISTRIES
• In the Union Budget 2022-23,
1. PLI SCHEME FOR SOLAR 2
MODULES 3 the allocation for ‘Hazardous
Substances Management’
stood at Rs. 4.5 crore (US$
• The government allocated Rs.
594,000).
19,500 crore (US$ 2.57 billion)
• The allocation for the Central
for a PLI scheme to boost
Pollution Control Board,
manufacturing of high-efficiency
responsible for tackling
solar modules.
• The government will prioritise 1 4
pollution around the country,
remained at Rs. 100 crore
the full integration of (US$ 13.2 million), the same
manufacturing units into solar as the year before.
photovoltaic (PV) modules.
19
Increasing investments, FDI inflows and M&As
▪ India’s liberal foreign investment policy permits 100% FDI in the renewable energy
sector. New Investments in Clean Energy in India
▪ The International Renewable Energy Agency (IRENA), in partnership with the (US$ Billion)
Indian G20 Presidency, launched a new report on how low-cost finance can
accelerate the energy transition.
▪ In November 2023, AmpIn Energy Transition announced an investment
30
of Rs. 3,100 crore (US$ 372.6 million) to establish renewable energy projects
exceeding 600 MW and an integrated manufacturing facility for solar cells and
modules across the Eastern region. The funding will be focused in West Bengal,
Bihar, Odisha, Jharkhand, Chhattisgarh, and the Northeastern States. 25
25.0
▪ In February 2023, IREDA announced to establish an office in Gujarat’s GIFT city to
finance renewable energy projects in foreign currency.
▪ Ayana Renewable Power Pvt Ltd (Ayana) announced plans to set up renewable 20
energy projects totaling 2 gigawatts (GWs) with an investment of Rs. 12,000 crore
(US$ 1.53 billion) in Karnataka.
▪ In February 2022, Husk Power Systems, a renewable energy company working 15
towards rural electrification, secured a US$ 4.2 million loan from the Indian
Renewable Energy Development Agency (IREDA).
▪ In February 2022, Virescent Renewable Energy Trust (VRET), a renewable energy 10 10.8
infrastructure investment trust, raised US$ 87 billion through a domestic bond
9.3
issuance.
▪ In December 2021, India's largest energy provider, Tata Power, was awarded a 5 6.2
contract by the Maharashtra State Electricity Distribution Company Limited
(MSEDCL) to set up a 300 MW wind-solar hybrid power plant.
▪ In October 2021, the UAE announced investment of US$ 75 billion in India and
0
collaborate on clean energy projects. 2018 2019 2020 2023
▪ In October 2021, Adani Green Energy acquired SB Energy India for Rs. 26,000
crore (US$ 3.5 billion), making it India’s biggest renewable sector M&A deal.
▪ In August 2021, Copenhagen Infrastructure Partners (CIP) signed an investment
agreement with Amp Energy India Private Limited, to facilitate joint equity
investments of more than US$ 200 million across Indian renewable energy
projects.
20
Increasing FDI inflows
Foreign Collaborator Country Indian Company FDI Equity Inflow (US$ mn)
Asian Development Bank Philippines Renew Power Ventures Pvt. Ltd. 44.69
AIRRO Singapore Pte Ltd. Singapore Diligent Power Pvt. Ltd. 41.07
OSTRO Renewal Power Limited Mauritius OSTRO Energy Pvt Ltd. 32.21
AREVA Solar Inc. U.S.A AREVA Solar India Pvt Ltd. 31.53
21
Opportunities
22
Huge untapped potential
▪ India is estimated to have renewable energy potential of 900 GW from Renewable Energy Potential in India
commercially exploitable sources - Solar energy: 750 GW; Wind
power1: 102 GW; Bio-energy: 25 GW; and Small Hydro: 20 GW.
Notes: GW - Gigawatt, 1Wind Power potential is at 80 metres above ground level, MW-megawatt
Source: Ministry of New and Renewable Energy (MNRE), Central Electricity Authority (CEA), IIT Chennai Study
23
Rising power demand
▪ India’s ambitious renewable energy goals are transforming its power Peak Power Demand in India (GW)
sector. The rising population and widespread electrification in rural
homes are fuelling the demand for energy to power homes, 800.00
businesses and communities.
690.0
to grow to reach 817 GW by 2030.
600.00
▪ India's power consumption rose by 8.4% to 139 billion units in July
2023.
500.00
▪ The peak power demand in the country stood at 243.27 GW on
November 30, 2023.
400.00
▪ India's electricity consumption grew nearly 80% to about 847 billion
units (BU) in the first half of this fiscal year from April to September, 300.00
showing an uptick in economic activities in the country.
243.3
▪ India has an electricity-GDP elasticity ratio of 0.8. Thus, 7% growth in 200.00
215.9
210.8
energy supply will be required if India is to grow at 8%. This shows
164.1
164.1
159.5
153.4
that electricity will continue to remain a key input in India’s GDP 100.00
growth.
0.00
24
Move towards renewable sources
▪ It has been estimated that renewables will comprise 49% of India’s power
RES as Percentage of Total Installed Capacity (%)
generation by 2040.
▪ In Budget 2023-24, pumped storage projects received a push with a
detailed framework to be formulated.
41.40% 42.10%
▪ Solar and wind energy currently contribute more than 50% of the total
renewable capacity of the country. According to data, India had a fully
renewable energy capacity of 168.9 GW, including 67.82 GW of solar
power and 43.20 of wind power, as of 30th May 2023.
• In Budget 2023-24, US$ 1.02 billion (Rs. 8,300 crore) central sector support
for ISTS infrastructure for 13 GW renewable energy from Ladakh was
announced. 27.77%
▪ Over the last few years there has been an increase in the percentage 24.71%
23.51%
contribution of renewable energy to total installed capacity. In 2013-14, the 21.80%
contribution was 12.92%, which increased to 42.1% as of November 2023. 20.06%
▪ Replacing coal plants with renewable sources is expected to save India Rs. 17.52%
54,000 crore (US$ 8.4 billion) annually due to reduced power costs.
14.18%
▪ About 5,000 compressed bio-gas plants will be set up across India by 2023.
▪ According to the analytics firm British Business Energy, India ranked 3rd
globally in terms of its renewable energy investments and plans in 2020.
▪ Enfinity Global, a US-based renewable energy company, has added 205
MW of solar power in India.
▪ In October 2021, Reliance New Energy Solar Ltd. (RNESL), collaborated
with Stiesdal A/S (Stiesdal)—a Denmark-based firm—to manufacture FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24*
hydrogen electrolysers and contribute to achieve India’s green energy
transition mission.
▪ In June 2021, IKEA announced to launch programmes to help suppliers in
India transit to 100% renewable power. The company has ~50 suppliers in
the country.
25
Key Industry Contacts
26
Key industry contacts
India Habitat Centre Complex, Core- 4A, East Court, 1st Floor,
Lodi Road, New Delhi- 110 003
The Indian Renewable Energy Development
Tel: 91 11 24682214/ 21
Agency (IREDA)
E-mail: cmd@ireda.gov.in
Web site: www.ireda.gov.in
27
Appendix
28
Glossary
▪ US$: US Dollar
▪ Wherever applicable, numbers have been rounded off to the nearest whole number
29
Exchange rates
Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11
2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95 2012 53.49
2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03
2014-15 61.15 2015 64.15
2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89 2019 69.89
2019-20 70.49 2020 74.18
2020-21 73.20 2021 73.93
2021-22 74.42 2022 79.82
2022-23 78.60 2023* 83.15
30
Disclaimer
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,
wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or
incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of
IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for
professional advice.
IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume
any liability, damages or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.
IBEF shall not be liable for any special, direct, indirect or consequential damages that may arise due to any act or omission on the part of the user
due to any reliance placed or guidance taken from any portion of this presentation.
31