India’s cumulative renewable energy capacity has reached 201.46 GW, with solar energy accounting for 45 per cent of the total capacity, followed by wind and large hydro's 23 per cent contribution each as of September 2024.
India’s renewable energy growth faces challenges in solar, wind and infrastructure, but overcoming them is key to achieving 2030 clean energy targets
India’s cumulative renewable energy capacity has reached 201.46 GW, with solar energy accounting for 45 per cent of the total capacity, followed by wind and large hydro's 23 per cent contribution each as of September 2024.
The country is expected to add 22.4 GW of solar energy capacity and 3.6 GW of wind energy capacity in 2024, as per JMK Research & Analytics report. Of this, 7 GW will come from utility-scale projects, 4 GW from rooftop solar installations, and 1.4 GW from off-grid systems.
India is aiming to achieve significant renewable energy capacity additions in 2024, with solar expected to make up the bulk of new installations. The country is targetting substantial growth in both solar and wind sectors to meet its future energy needs.
From January to September 2024, India added 13.2 GW of utility-scale solar capacity, marking a 160.9 per cent increase compared to the same period in 2023. Additionally, 3.2 GW of rooftop solar capacity was installed, representing a 7.3 per cent growth year-on-year. Wind energy installations also saw growth, reaching 2.6 GW, up 14.8 per cent from the previous year.
In Q3 2024, utility-scale solar installations surged to 3.6 GW, a 71.4 per cent increase compared to Q2 2024. However, wind installations in the same quarter declined by 7.8 per cent, reaching a total of 0.71 GW. Besides, around 1.4 GW rooftop solar installations were reported in Q3.
A pipeline of 111.2 GW in solar, wind, hybrid, and storage projects is expected to be operational within the next 4-5 years, while another 55.8 GW of projects are currently in the bidding phase. These projects are key to meeting India’s long-term renewable energy goals, but challenges like infrastructure gaps and slow state commitments continue to pose barriers to smooth implementation.
Sungrow was the leading inverter supplier in Q3 2024, with a 30.6 per cent market share, followed by Sineng and Tbea. In the module segment, Waaree led shipments with a 19.9 per cent share, as per the report.
Adani remained the top project developer in terms of cumulative and pipeline capacity, with 33.2 GW, followed by ReNew (18.4 GW), Greenko (14.1 GW), and Avaada (11.5 GW).
The market is increasingly competitive, with top players accelerating the expansion of renewable energy in India.
India is targetting 500 GW of renewable energy capacity by 2030, a goal that could result in solar equipment imports reaching approximately $30 billion, primarily driven by a reliance on Chinese products. The Global Trade Research Initiative (GTRI) emphasises the importance of India building its own solar manufacturing sector, particularly in areas like polysilicon and wafer production, to avoid high import costs and ensure the sustainability of the transition.
To reach the 500 GW target, India must significantly increase its annual solar installations to 65-70 GW, with solar expected to comprise more than 80 per cent of the total renewable energy capacity.
India’s solar capacity grew by 15 GW in 2023-24, reaching a total of 90.8 GW by September 2024, a significant increase from the 2.8 GW in 2014. Despite this progress, the GTRI warns that India will need to drastically increase its solar installations to meet the 2030 target.
Investment in India’s renewable energy sector reached $2.36 billion in Q3 2024, marking a 13 per cent increase from Q2 2024. Domestic Mono PERC module prices have declined by 10 per cent quarter-on-quarter and 30 per cent year-on-year, reflecting broader cost trends in the sector. These investments will be crucial in supporting the country’s renewable energy expansion as it works towards a more sustainable future.