After a year of cloudy skies, the country’s renewable energy sector is expected to boom in 2022, with an estimated investment of over $15 billion as the government puts its focus on solar equipment manufacturing, electric vehicles, green hydrogen, and meeting the ambitious 175 GW renewable capacity target. India, which now has a generation capacity of just over 150 GW of the renewable energy, plans to increase that to 175 GW by 2022. Solar would account for 100 GW, wind for 60 GW, bio-electricity for 10 GW, and modest hydro power for 5 GW of the entire mix.
“By 2022, we expect renewable energy investment to reach at least $15 billion,” R K Singh, the Union Minister for the Power and New and Renewable Energy, told PTI. According to Bloomberg New Energy Finance (BNEF), new clean energy investment in the country is expected to reach $6.2 billion in the year 2020, $9.3 billion in 2019, and $10.8 billion in 2018. Last month, the minister presented these data in a written reply to the Rajya Sabha.
COVID-19’s second wave, which began in April, hampered the installation of several renewable energy ventures as states placed limitations to prevent the spread of infection. According to the REN21 Renewables 2020 Global Status Report, renewable energy programs and projects in India garnered USD 64.4 billion in investments from 2014 to 2019.
Nonetheless, new opportunities arose in 2021. ReNew Power, the first Indian renewable energy business to list on Nasdaq, became the very first Indian renewable energy firm to do so in August. According to data from the DPIIT (Department for Promotion of Industry and Industrial Trade), the Indian ‘Non-Conventional Energy’ sector attracted $7.27 billion in foreign direct investment from 2014-15 to June 2021. In 2020-21, FDI worth USD 797.21 million was received out of the total amount.
“We will accomplish the 175 GW of the renewable energy capacity objective that we set (excluding large hydro),” the minister stated, referring to the country’s progress toward a renewable energy capacity of 175 GW by 2022. According to Singh, the country achieved a renewable energy installed capacity of about 150 GW in November, including huge hydro projects. He emphasized that 63 GW of the renewable energy capacity is now being installed, with completion due next year.
India pledged to obtain 40% of its installed electrical capacity from non-fossil energy sources by 2030 as a component of its Nationally Determined Contributions (NDCs) at COP 21. This goal was met by India in November of 2021.