India is the world’s third-largest producer as well as consumer of electricity. Power generation is an essential driver of growth for the world’s sixth-largest economy. However, to balance growth with sustainability, India has opted to increase its renewable energy capacity, which today stands at 37% per cent of total national power capacity.
India’s renewable energy potential
India’s renewable energy production is growing at a fast pace. From less than 20 GW just a decade ago, today, it stands at over 96 GW in just a decade. Going further, the Bank of America has projected the Indian renewable energy sector to attract $150 billion in investments by the year 2030.
Corporate India bullish on Green energy
A pointer to the above prediction is the approval given by the Competition Commission of India to SoftBank Group Corp. to sell its renewables business to Adani Green Energy at a whopping $3.5 billion. Besides, the Reliance Group has announced an investment of ₹75,000 crores in the clean energy sector over the next three years.
The Government of India has also offered several encouragements, including, incentives, low-interest finance, etc., to the renewable energy sector. Moreover, in the 2020-21 Budget, the Finance Ministry had pledged ₹220 billion funding for the renewable energy sector.
India has a surplus power generation capacity. However, adequate transmission and distribution infrastructure prevent electricity from reaching every household, especially in rural areas. With all the funding in green energy initiatives, India is expected to minimise this issue.
Apart from the commitments to reduce carbon emissions, the capacity addition in green energy will go a long way in ensuring India’s energy security, decrease imports and consequently lessen the spending on foreign exchange. All these factors certainly add up to India’s global geoeconomic might.
With ambitious climate goals, India is considered a major renewable energy market by domestic and foreign businesses. More importantly, renewable energy is expected to provide clean energy to the common masses of India and help them have greener environmental conditions to live.