By Tanya Singhal, Founder, Mynzo Carbon
India’s renewable energy sector is undergoing a transformative shift, fuelled by a plethora of factors that promise a sustainable and energy-secure future. India’s commitment to expanding its renewable energy capacity, coupled with supportive government policies and technological advancements, is propelling this paradigm shift. Let’s delve into the status, emerging trends, government support, challenges, and the way forward in India’s renewable energy landscape.
India’s renewable energy sector has witnessed exponential growth, with a combined non-fossil fuel capacity of 180 GW, led by 75 GW of solar and 45 GW of wind energy. This growth surpasses the target of 20 GW by 2022, outlined in the original National Solar Mission (NSM) in 2019. India has set its sights on the much-needed target of 500 GW of renewable energy before 2030, a pivotal step toward achieving Net Zero.
Latest Trends Driving the Paradigm Shift
Several key trends are shaping the future of India’s renewable energy sector, including:
Cost Reduction: The cost of renewable energy has reduced drastically, with solar prices dropping from Rs 18/unit in 2019 to the current Rs 2.5 – 3/unit. Offering fixed prices for 25 years, renewables are now significantly cheaper than conventional sources of power and a more stable source, thanks to technological advancements and innovative engineering.
24-hour Round-The-Clock Power: Pumped Storage Projects (PSP) and Battery Energy Storage Systems (BESS) can make renewable energy a 24-hour power source. With the declining costs of battery storage, renewable energy can be stored and used during peak demand hours, making it a viable alternative to conventional energy sources.
Innovative Financing Structures: The advent of new financing structures, including green bonds and Infrastructure Investment Trusts (InVITs) are a significant boost to the renewable energy sector. Green bonds, aimed at funding environmentally sustainable projects, offer developers access to capital markets with potentially lower borrowing costs. InVITs, on the other hand, allow developers to monetise their assets and provide investors with an opportunity to invest in infrastructure projects, including renewable energy. These innovative financing mechanisms are attracting greater investment into the sector, driving growth and facilitating the expansion of renewable energy capacity in India.
Artificial Intelligence and Data Analytics: The integration of AI and data analytics in the renewable energy sector is revolutionising the way solar plants are managed and operated. By creating digital twins of solar plants, developers can simulate and optimise plant performance, leading to increased output and efficiency. This technology enables predictive maintenance, real-time monitoring, and data-driven decision-making, further enhancing the reliability and profitability of solar energy projects.
Technological Advancements: Innovations in solar panel efficiency, wind turbine design, and energy storage solutions are enhancing the viability and performance of renewable energy systems and further helping reduce costs.
Decentralisation and Rooftop Solar: The growing emphasis on decentralised energy generation, particularly rooftop solar installations, is driven by the falling costs of solar panels and the need for energy security at the local level.
Corporate Renewable Energy Procurement: An increasing number of corporate are committing to procure renewable energy directly from developers, leading to a surge in corporate power purchase agreements (PPAs) for wind and solar energy.
Electric Mobility: The push for electric vehicles (EVs) in India is creating new opportunities for renewable energy, particularly in charging infrastructure powered by solar and wind energy.
Green Hydrogen: India’s exploration of green hydrogen as a clean fuel alternative for industries and transportation is setting the stage for a new era in renewable energy utilisation.
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