The Evolution of India’s Clean Energy Industry: Past, Present and Future
- Share.Market
- 7 min read
- 21 Jan 2025
This comprehensive overview highlights India’s clean energy progress, from early policy frameworks to current achievements and future goals. Learn about the initiatives driving India’s sustainable energy future.
India is making big moves in clean energy to meet its growing energy needs while protecting the environment. As the third-largest energy consumer in the world, with energy use growing at about 5% each year, the country is at a turning point in its energy journey.
Over time, India’s clean energy sector has grown quickly, thanks to strong government support, new technologies, and a focus on sustainability. From solar and wind energy projects to green policies, the progress has been impressive.
This blog takes you through India’s clean energy story—its past achievements, current developments, and future possibilities—while highlighting the key steps shaping a cleaner, brighter future.
The Past: Foundations of India’s Clean Energy Journey
Early Initiatives and Policy Framework
India’s journey towards clean energy began in the late 20th century, with the realization of the environmental and economic benefits of renewable energy.
The establishment of the Ministry of New and Renewable Energy (MNRE) in 1992 marked a significant step in promoting renewable energy sources. Early policies focused on small-scale renewable energy projects, particularly in rural areas.
Key Milestones
- National Action Plan on Climate Change (NAPCC) – 2008: This plan outlined eight national missions, including the National Solar Mission and the National Mission for Enhanced Energy Efficiency. The focus was on enhancing awareness and understanding of climate change, emphasizing adaptation, mitigation, energy efficiency, and natural resource conservation.
- Jawaharlal Nehru National Solar Mission (JNNSM) – 2010: Launched to promote the development and deployment of solar energy technologies, the mission set an ambitious target of 20 GW of solar power by 2022. The target was later revised to 100 GW, with 40 GW coming from rooftop solar and 60 GW from large and medium-scale grid-connected solar power projects, reflecting the growing commitment to solar energy.
- Renewable Purchase Obligations (RPOs): Introduced to mandate that a certain percentage of electricity must be generated from renewable sources. This policy played a crucial role in driving demand for renewable energy.
The Present: Rapid Growth and Achievements
Current Status of Renewable Energy in India
According to the Council of Energy, Environment and Water, renewable energy accounted for 71% of India’s power generation capacity addition in FY24. India’s total energy capacity has now reached 442 GW, with solar and wind energy being the primary contributors. In 2023 alone, 13.5 GW of new energy capacity was added.
Major Initiatives and Programs
- International Solar Alliance (ISA): Launched in 2015, the ISA is an alliance of over 120 countries, initiated by India and France, to promote solar energy globally. The alliance aims to facilitate the deployment of solar energy technologies and mobilize investment.
- National Wind-Solar Hybrid Policy: Introduced to promote the simultaneous development of wind and solar energy projects. This policy aims to optimize the utilization of transmission infrastructure and land resources, thereby reducing the overall cost of renewable energy generation.
- KUSUM Scheme: The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) scheme was launched to promote the use of solar energy in the agricultural sector. It aims to install 49 lakh solar pumps and grid-connected solar power plants, thereby providing farmers with a reliable source of energy and reducing their dependency on conventional power sources.
Achievements and Impact of Clean Energy
- Solar Energy: India has become one of the largest markets for solar energy, with an installed capacity of around 81.8 GW as of March 2024. The country has also achieved some of the lowest solar tariffs globally, making solar power more affordable and competitive.
- Wind Energy: With an installed capacity of over 45 GW as of March 2024, India is among the top five countries in the world for wind energy. The development of large-scale wind farms has significantly contributed to the country’s renewable energy capacity.
- Energy Access and Rural Electrification: Renewable energy initiatives have played a crucial role in providing electricity to remote and rural areas. Programs like the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) have facilitated the electrification of villages using renewable energy sources.
According to the International Renewable Energy Agency – Renewable Capacity Statistics 2023, India ranks 4th globally in total renewable energy installed capacity, 4th in wind power capacity, and 5th in solar power capacity.
The Future: Vision and Goals of Clean Energy
Ambitious Targets and Roadmap
India’s clean energy ambitions continue to grow, with the government setting an aggressive target of achieving 500 GW of renewable energy capacity by 2030. This target includes 280 GW of solar power, 140 GW of wind power, and the remaining from other renewable sources like biomass and hydropower.
According to CII, over 6,600 cleantech startups focused on diverse areas ranging from green entrepreneurship to driving innovation across the spectrum.
Key Ongoing Renewable Energy Projects in India
TITLE OF THE PROJECT | NAME OF THE PI AND INSTITUTION | PROJECT COST, MNRE SHARE (RS. IN LAKH) AND DURATION | |
Solar PV | |||
1 | National Centre for Photovoltaic Research and Education (NCPRE) Phase-III | Prof. B G Fernandes, Indian Institute of Technology (IIT) Mumbai | Project cost = Rs. 4092 Lakhs MNRE share = 100%Duration = 4 years |
2 | National Primary Standard facility for cell calibration | Dr. Prathap Pathi National Physical Laboratory (NPL), Delhi | Project cost = Rs. 2166.76 LakhsMNRE share = 100%Duration = 3 years |
Wind Energy | |||
1 | Integrated Wind and Solar resource Assessment | Director General, National Institute of Wind Energy (NIWE), Chennai | Project cost = Rs. 1799 lakhsMNRE share = 100%Duration = 5 years |
2 | Met-Ocean Measurements (Wind, Wave, Tide, Current, Water Level, etc.,) at Gulf of Khambhat and Gulf of Mannar | Director General, National Institute of Wind Energy (NIWE), Chennai | Project cost = Rs. 4464 lakhsMNRE share = 100%Duration = 5 years |
Hydro Energy | |||
1 | Green Hydrogen Mobility Projects at Leh | Sh. DMR Panda, General Manager NTPC Ltd., Noida, U.P. | Project Cost = Rs. 7227 lakhMNRE Share = Rs. 2598.5 lakhsDuration = 3 years |
2 | Design & development of 20kW Low Temperature Polymer Electrolyte Membrane Fuel Cell (LTPEMFC) with high indigenous content | Dr. R. Balaji ARCI-Centre for Fuel Cell Technology, Chennai | Total Project Cost= Rs 2138.74 lakhsMNRE Share= Rs 1773.74 lakhsDuration= 3 years |
3 | Setting Up of a Centre of Excellence on Hydrogen Energy at National Institute of Solar Energy (NISE), Gwal Pahari, Haryana | Director General, National Institute of Solar Energy (NISE), Gurugram, Haryana | Total Project Cost= Rs.1030.47 lakhsDuration= 3 years |
Source: MNRE Website
Emerging Trends and Technologies of Renewable Energy
- Energy Storage Solutions: As renewable energy penetration increases, the need for reliable energy storage solutions becomes critical. India is exploring various energy storage technologies, including lithium-ion batteries and pumped hydro storage, to ensure a stable and resilient grid.
- Green Hydrogen: Green hydrogen, produced using renewable energy sources, has the potential to play a significant role in India’s clean energy future. The government is formulating policies to promote the production and utilization of green hydrogen in sectors like transportation and industry with an outlay of Rs 19,744 crore.
- Floating Solar Projects: With limited land availability, floating solar projects on reservoirs and water bodies offer an innovative solution. These projects not only generate clean energy but also reduce water evaporation and improve water quality.
Policy Support and Investment
- Production-Linked Incentive (PLI) Scheme: To boost domestic manufacturing of solar modules and batteries, the government has introduced the PLI scheme. This initiative aims to reduce dependence on imports and create a robust domestic supply chain for renewable energy technologies. The government has announced the first tranche of PLI benefits estimated at Rs 4,500 crore.
- Foreign Direct Investment (FDI): The Indian government has allowed 100% FDI in the renewable energy sector, attracting significant investment from global players. This has facilitated the development of large-scale renewable energy projects and accelerated the growth of the industry. Foreign direct investment (FDI) flows towards non-conventional energy exceeded USD 2 billion for the second consecutive year.
- Grid Modernization and Smart Grids: To accommodate the increasing share of renewable energy, India is investing in grid modernization and the development of smart grids. These initiatives aim to enhance grid stability, improve energy efficiency, and integrate renewable energy sources seamlessly.
- Despite the optimism and substantial progress, India requires an estimated investment of USD$ 80-100 billion annually to meet its renewable energy targets, as per the International Finance Corporation (IFC).
Conclusion
India’s clean energy industry has come a long way, evolving from modest beginnings to becoming a global leader in renewable energy. The country’s commitment to sustainability, supported by robust policies and innovative technologies, has driven significant growth in the sector. As India continues to pursue its ambitious clean energy targets, the future holds immense potential for further advancements and contributions to global climate goals.