With an oil price shock threatening to derail economies globally, the focus has shifted to renewable energy with over $25 billion or Rs 2 lakh crore investment planned in India for using sunlight, water and air to produce energy. Oil and gas prices shooting through the roof in 2022 in the aftermath of Russia’s war in Ukraine sent governments in import-dependent nations like India scrambling for
Not just imports but a shift to renewables is also seen as a way to cut carbon footprint and meet net-zero targets. And so the government in 2022 aggressively pushed for the adoption of electric vehicles, the production of green hydrogen, manufacturing of solar equipment and energy storage in pursuit of its ambitious 500 GW renewable capacity target by 2030. India would have to add at least 25G
India would have to add at least 25GW of renewable energy capacity per annum for eight years continuously to achieve the 500 GW target by 2030.
At present, India has around 173GW of non-fossil fuel based clean energy capacity which includes about 62GW of solar, 42GW of wind energy, 10GW of biomass power, about five GW of small hydro, 47 GW of large hydro and seven GW of nuclear power capacity.
The Union power and new & renewable energy minister R K Singh stated that the investment in the renewable energy sector could be around $25 billion in 2023. Elaborating further he said, “We have to achieve a 500 GW target (of clean energy by 2030). Currently, we have a capacity of 173 GW (including large hydro and nuclear power). Capacity under construction is around 80 GW. It takes it to 250 GW. So we have to do another 200 GW by 2030.”
He explained further that India needs to add about 25 GW of renewable energy capacity per annum for the next eight years, which would require an investment of Rs 1,25,000 crore or $15 billion to 16 billion factoring in Rs 5 crore requirement per MW of capacity addition.
Singh further said: “We are also doing (solar) manufacturing, which will also attract investment. Currently, a capacity worth Rs 8,780 crore is under construction. It includes polysilicon and module. We are bringing the PLI (Production Linked Incentive) scheme worth Rs 19,500 crore, under which around 40GW capacity will be developed. We are also doing offshore wind of 4GW, which will also fetch billions of dollars.” The government is also focussing on green hydrogen with its National Mission on Green Hydrogen. The bids are expected for the manufacturing of electrolysers next year. That would also bring investment in the clean energy sector.
