Energy transition to renewable energies is already on track around the globe. India’s installed renewable energy generation capacity has increased to 226% in the last 5 years. Significant government plans and investments have made the renewable energy sector an attractive point for investors. Know more about the sector in this blog with us here at Niche.#ThinkWithNiche
“A low carbon, clean energy economy can be an engine of growth for decades to come”, Barack Obama
Coal or ‘Kala Pathar’ plays a role of a dominant king in India’s electricity. India is the 2nd largest coal-producing and consuming country and emitter of greenhouse gases. But with this immense air pollution, water scarcity, and insecurity about energy access and affordability, the energy transition has to take place to renewable energies which are already on track around the globe.
Record low solar tariffs by more than 75% and flexible clean power with less pollution have made 2020 the year of clean energy. India’s installed renewable energy generation capacity has increased to 226% in the last 5 years. Significant government plans and investments have made the renewable energy sector an attractive point for investors. India has a renewable energy potential of 1000+ GW and aims to achieve 227 GW of renewable energy capacity by 2022 and 523 GW by 2030 which makes it the world's largest expansion plan.
With the current climate crisis and growing electricity consumption demand which is projected to reach 15280 TWh in 2040, renewable energy is going to be a gateway to meet the demand in a more cleaner or sustainable manner. It will be a complete change that not only will open the doors for opportunities but also will lead to more capital expansion. Renewable energy is expected to make 30% of the world's energy by 2024 according to IEA through solar and wind power only.
Power demand will be triple by 2040, it will be favourable if clean energy technologies scale up fast and mitigate the use of fossil fuels. As for now, solar is the cheapest source of energy with no carbon dioxide emission and no air pollution.
Government Investments And Policies
Under Union budget 2021-22, the government has provided an additional capital of 1000 crore INR to Solar Energy Corporation of India (SECI) and 1500 crore INR to Indian Renewable Energy Development Agency (IREDA). As per British Business Agency, India ranks 3rd on renewable energy investments and plans. India stood on the 4th Most Attractive Renewable Energy Market in the world in 2020.
India has ranked 5th in wind power and solar power and 4th in renewable power installed in 2019. Most of the demand will come from the real estate and transport sectors. Wind energy capacity has increased 1.7% in the last 4 years and solar power from 2.6 GW to 34 GW in 2019 in the last 5.5 years. There is a target of 30 GW of offshore wind energy by 2030.
3. Prime Sector To Achieve Sustainability Goals
India is committed to increased use of clean energy and various large-scale sustainable power projects are being undertaken. Green energy is being promoted on a big scale. All this widens the ground for large businesses as well as small businesses with apt infrastructure. Also, it unlocks the way for many employment opportunities, especially in rural areas. As per the Central Electricity Authority (CEA) estimates, by 2029-30, the share of renewable energy would increase from 18% to 44%.
Many countries are coming together to join hands to take a step towards clean energy. India’s renewable energy sector is expected to attract investment worth USD $80 billion next 4 years and 5000 compressed biogas plants will be set up across India by 2023.
India aims to develop a ‘Green City’ in every state of the country powered by renewable energy with eco-friendly power through solar rooftop systems, solar parks, etc. this opens the doors for various fields for business. This sector is rapidly expanding and no doubt would be a flourishing one in a few years.