Renewables reach 5.7% of India’s energy mix

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
NRDC said US$140 billion of investment is required in the next six years to reach India’s solar, wind and efficiency targets. Credit: MNRE

The share of renewables, excluding hydropower, in India’s energy mix has reached 5.7% as of February this year, up from 4.97% in 2012/13, according to data released by the Central Electricity Authority.

Energy minister Piyush Goyal said amendments to the Renewable Purchase Obligation (RPO) in January, have set the target for 8% of the energy mix (excluding hydro) to come from renewables by March 2022.

Nevertheless, consultancy firm Bridge to India recently claimed that the RPO mechanism has by and large failed because of a poor regulatory framework and non-compliance in the wake of the poor financial health of distribution companies. However, while states such as Odisha and Uttar Pradesh have seen extensions or legal stays on their RPO targets, others such as Telangana, Andhra Pradesh, Karnataka and Jharkhand are rapidly scaling up their solar programmes and going far beyond their RPO targets.

Meanwhile, a new release from the Natural Resources Defense Council (NRDC) this week claimed that over US$140 billion of investment is required in the next six years to reach India’s solar, wind and efficiency targets to increase clean energy access.

Sameer Kwatra, climate change and energy policy analyst at NRDC, said: “Innovative financial mechanisms and institutions, such as green bonds and green banks, respectively, have proved successful on the state level and internationally, can help propel India’s solar and wind energy markets, and support critical energy-saving and climate resilience projects.”

Piyush Goyal has also said that the Green Energy Corridors projects to transmit power from solar rich states to states with high energy demand will help integration of renewables into the grid and increase their share. These Inter-State Transmission Projects are expected to be funded 70% through KfW loans and with 30% equity from Power Grid Corporation of India Limited (PGCIL).

Referring to the latest news, Mudit Jain, consultant at Bridge to India, said on Twitter

The Indian government is also promoting the use of waste land for the installation of solar power plants. For example India’s Union Cabinet recently qualified 400 acres of “un-cultivable” land in Rajasthan to be used for a 200MW solar PV project.

Goyal has also recently said that “India now will lead the world towards clean energy rather than follow”, while reconfirming that India's solar targets are achievable.

He said India has exceeded its solar targets by 116% this year in comparison to last year and already had awarded 11GW projects.

If you are looking to invest in or develop solar projects in India, join us on the 7th of June in London at Solar Finance & Investment: India, a conference designed to bring together European and North American investors and developers looking into the Indian market, as well companies with consolidated presence that are exploring new partnerships.

Read Next

January 21, 2022
India is at risk of a supply and demand mismatch for solar equipment if domestic PV manufacturers are unable to meet the quantity and quality required by project developers, Fitch Solutions has warned.
January 13, 2022
Reliance Industries has signed a Memorandum of Understanding (MoU) with the government of Gujarat for a total investment of INR5.955 lakh crore (US$80 billion) over 10-15 years to establish 100GW of renewables and set up green technology manufacturing facilities in the state.
January 10, 2022
Indian renewables company ReNew Energy Global Plc’s wholly owned subsidiary India Clean Energy Holdings has raised US$400 million through a green bond sale that will be used to support the company’s growth strategy and “refinance existing high-cost debt”.
January 10, 2022
Indian conglomerate Adani Group has set up a new subsidiary focused on areas including manufacturing solar equipment and producing green hydrogen.
January 7, 2022
India’s state-owned National Hydroelectric Power Corporation (NHPC) has signed an agreement with the Green Energy Development Corporation of Odisha Ltd (GEDCOL) for the development of 500MW of floating solar projects in the eastern state of Odisha.
January 6, 2022
Renewables developer Hero Future Energies (HFE) has formed a partnership with electrolyser manufacturer Ohmium International to develop and build 1GW of green hydrogen plants across India, the UK and Europe.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal