India's Renewable Energy Surge: A Green Future Beckons

CRISIL's report forecasts India's renewable energy capacity to soar, doubling the growth rate of overall power capacity by fiscal 2030. Renewable capacity is expected to hit 360-370 GW, driven by solar expansion and favorable policies, positioning India as a pivotal player in global renewable transition.

A report from CRISIL reveals that India's renewable energy sector is set to expand at twice the pace of the nation's overall energy growth. By fiscal 2030, excluding large hydro projects, renewable energy capacity is slated to reach 360-370 gigawatts, with a compound annual growth rate between 16.5 and 17 per cent.

In contrast, the country's total power capacity will grow at a slower rate of 7.5 to 8 per cent, from its March 2024 base of 442 GW. As of that date, renewable sources contributed 191 GW to the power mix, inclusive of large hydroelectric plants.

The report credits government policies, competitive tariffs, and new solar initiatives for this expected growth. India's solar capacity, a major growth driver, rose from 0.9 GW in 2012 to 82 GW by 2024. Looking ahead, a further increase of 175-180 GW in solar capacity is anticipated between 2025 and 2030.

Even with past challenges, such as a 4.2 per cent peak deficit in energy supply during fiscal 2023, the situation has improved; the deficit narrowed to 1.4 per cent in 2024. As infrastructure and electric vehicle adoption grow, demand is forecasted to rise by 5.5 to 6 per cent over the next five years, despite advances in energy efficiency and off-grid solutions.

These dynamics underscore India's significant role in the global shift towards renewable energy, aligning with the nation's vision for a sustainable and environmentally-friendly energy framework.

(With inputs from agencies.)