Renewable Energy: Can India Realize Its Unlimited Potential?

Driven by its growing appetite for energy to power its economic engine, an overreliance on fossil fuels, increasing levels of pollution in its major cities and a rising fuel import bill, India’s need to adopt and propagate the use of renewable sources is more pressing than most.

To its credit, India has already taken rapid steps towards achieving its core goals in the domain of renewable energy development. As a result of the concerted efforts made by the central government and its Union Ministry of New and Renewable Energy together with various state bodies and NGOs, India is today a leading global player in terms of its total installed capacity of wind power and energy. decentralized solar. energy projects

Solar power is fast becoming the preferred option in the generation segment in a large number of states, driven in large part by abundant sunlight in most of the country and multiple government incentives such as tax breaks and energy subsidies. capital.

Key factors such as rapid improvements in technology, the entry of fully integrated players, and sheer economics of scale have combined to significantly reduce the capital costs of solar power projects in recent years. With this, several renewable energy projects, including solar, are expected to reach grid parity next year, compared to expensive fuels such as LNG and imported coal.

According to global clean energy communications and consulting firm Mercom Capital, Indian solar installations are forecast to be around 2,200 megawatts (MW) by the end of this year, while its wind power market is expected to attract investment for a total of INR 1,00,000 crore ($15.7 billion) by the year 2020, while the wind power capacity in the country is expected to nearly double from over 23,000 MW in June 2015, with an increase of estimated capacity of around 4,000 MW pa over the next five years.

Realizing its great potential, the new Indian government has also announced a series of high-cost programs aimed at providing fresh impetus to the history of renewable energy development in India. A list topped by the announcement of a massive renewable energy production target of 175,000 MW by 2022 (100,000 MW solar, 60,000 MW wind, 10,000 MW biomass, 5,000 MW small hydro).

Other key initiatives include: the announcement of the national wind power policy, the approval of 15,000 MW of grid-connected solar power projects by the NTPC, and the inclusion of renewable energy in priority sector loans (PSLs) by part of the RBI, which has paved the way for banks. Provide loans of up to US$2.36 million to borrowers for renewable energy projects.

Clearly, if things go according to plan, India looks well poised to take its rightful place as a leading producer of clean energy and a shining example for the rest of the world to follow.

Welspun Renewables is one of India’s leading clean energy players and is committed to establishing renewable energy mega projects in the country.