India is making great progress in the renewable energy sector, with the goal of reaching 500 GW of renewable energy capacity by 2030.
To meet this grand target, the government needs to build 50 GW of capacity per year. The administration has taken a balanced approach, recognizing the enduring necessity of coal-based capacity, especially since the country's peak electricity consumption reached a record 239.9 GW in September.
The year 2023 brought new criteria for competitive bidding processes for grid-connected solar PV power projects, stressing transparency and risk-sharing among players. Notably, the reduction in the power purchase agreement (PPA) length from 25 to 20 years may have an influence on tariff dynamics, but it is consistent with the government's objectives to ramp up thermal power before phasing it out.
Despite difficulties in the first half of the fiscal year, such as high solar module pricing and import taxes, the renewable energy sector is likely to pick up steam in the second half. Lowering solar module prices, loosening restrictions on permitted models and manufacturers, and government assistance are all likely to improve project adoption.
With the approval of the National Green Hydrogen Mission by the government, green hydrogen has emerged as a potential segment. This effort intends to reduce reliance on fossil fuels by 2030, with a green hydrogen production capacity of 5 million tonnes per year. Under the green hydrogen initiative, private businesses such as Reliance, Larsen and Toubro, Jindal India, and Adani Group have made proposals to manufacture electrolysers.
However, obstacles persist, such as power curtailment by state load dispatch centers and renewable energy intermittency. The sector's expansion will require significant investments, projected at $293 billion between 2023 and 2030. While India expects to triple its renewable energy share by 2030, tackling issues such as storage and fluctuation is critical. To maintain energy security, the government is auctioning new coal blocks and intends to add 80 GW of thermal capacity by 2030.
As India pursues renewable energy targets, it recognizes the continued role of coal-based electricity, which accounts for three-fourths of the country's present power sources. Balancing renewable and conventional energy sources is a major challenge that will require investments and international assistance. The country's transition to a cleaner, more sustainable energy future necessitates addressing complicated issues such as funding, intermittency, and energy storage.
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Technology is a useful servant, but a dangerous master, it was rightly said. Electronic devices have grown into an inevitable part of our daily lives.
