Renewable Energy has established itself as the technology of choice for new power generation capacity globally. India’s achievements towards transitioning to a secure, affordable and sustainable energy system to power robust economic growth have been outstanding. India is now the 4th largest market for renewable energy in the world, 4th largest market for wind and 3rd largest market for solar in the world only behind China and the US. India is running one of the largest and most ambitious renewable capacity expansion programs in the world of achieving 175GW of RE by 2022 and appropriate policy thrust to support this plan has been instrumental in driving up capacity addition.
Inaugurating the virtual 3rd Global Renewable Energy Investment Meeting and Expo, RE-Invest 2020 last evening, Prime Minister Modi said, India is travelling on an unparalleled journey in the last 6 years. He said the country is expanding generation capacity and network to ensure every citizen has access to electricity to unlock their full potential. The Prime Minister said India’s annual renewable energy capacity addition has been exceeding that of coal-based thermal power since 2017. In the last 6 years, India has increased installed renewable energy capacity by two and half times. He said, even when it was not affordable, India invested in renewable energy and this is bringing costs down. The Prime Minister said India is showing to the world that sound environmental policies can also be sound economics.
According to IEA, India will be the largest contributor to the renewables upswing in 2021 and one of the key forces behind the record global expansion driven by wind, solar PV and hydropower. But it remains to be seen whether India would be able to achieve this or if there are any headwinds to restrict this possibility. Policymakers still need to take steps to support the strong momentum behind renewables and provide a consistent and stable policy environment that strengthens the sector as a whole.
Renewable energy has been a bright spot in the Indian power sector and it is important that the growth trajectory is maintained. A steady flow of funds, policy clarity and ease of doing business will ensure that the Renewable Energy success story in India will continue unabated.