Renewable energy (RE) played a significant role in India in FY 23-24, contributing over 70 per cent of the 26 GW of new power generated in the country. With India’s total installed energy capacity now at 442 GW, RE makes up approximately 33 per cent (144 GW) of this, with hydro contributing 11 per cent (47 GW). The share of coal in India’s total installed capacity fell below 50 per cent for the first time. Solar energy, including grid-scale and rooftop installations, dominated India’s RE capacity addition at 81 per cent (15 GW) in FY24, while wind capacity nearly doubled to 3.3 GW compared to the previous year. Additionally, nuclear capacity of 1.4 GW was added for the first time since FY17.
In line with India’s renewable energy targets, RE auctions reached a record high in FY24, with approximately 41 GW of auctioned capacity. The report also highlighted the conclusion of eight auctions with energy storage components, indicating a shift towards innovative power procurement formats. Gagan Sidhu, Director of CEEW-CEF, noted that 95 per cent of India’s targeted 50 GW annual RE bidding trajectory was met in FY24, with bids of 47.5 GW being issued, three times the RE capacity added annually in recent years.
Peak power demand in India reached a new high of 240 GW in FY24, driven by a fast-growing economy and weather anomalies such as below-average rainfall and above-normal temperatures. Policy moves in the renewable energy sector in FY24 aimed to go beyond utility-scale RE, such as the introduction of PM Surya Ghar: Muft Bijli Yojana to increase rooftop solar installation in the residential segment, potentially adding 30 GW. The Ministry of Power’s amendments to the Electricity Rules of 2022, mandating the sale of un-requisitioned surplus power on exchanges, are expected to enhance supply-side liquidity and promote competitive prices on power exchanges.
Overall, the report by CEEW-CEF highlights the significant contribution of renewable energy to India’s energy landscape in FY 23-24. With a focus on solar and wind energy, as well as policy moves to encourage rooftop solar installation and boost supply-side liquidity in the power sector, India is making strides towards achieving its ambitious renewable energy targets. As the country continues to expand its renewable energy capacity, it is crucial to maintain momentum and overcome the challenges posed by peak power demand and weather variability.
