Renewable Energy

August 2023
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

Market Overview and Trends 6

Strategies Adopted 13

Growth Drivers 16

Opportunities 22

Key Industry Contacts 26

Appendix 28

2
Executive summary

Ambitious targets
• India has set a target to reduce the
carbon intensity of the nation’s
Immense growth potential economy by less than 45% by the
end of the decade, achieve 50%
• India has low conventional energy
cumulative electric power installed
resources compared to its required
by 2030 from renewables, and
energy needs driven by a huge
achieve net-zero carbon emissions
population and a rapidly increasing
by 2070.
economy. However, India can harness
the huge potential of solar energy as it • The non-hydro renewable energy
receives sunshine for most of the year. capacity addition stood at 4.2 GW
It also has vast potential in the for the first three months of FY23
hydropower sector which is being against 2.6 GW for the first three
explored across states, especially in the months of FY22.
northeast.
• As of April 2023, Renewable energy Increasing investment
sources, including biomass, waste to
power and waste to energy, have a • The non-conventional energy space in
combined installed capacity of 532.48 India has become highly attractive for
GW. investors and received an FDI inflow
• India is the only country among the G20 of US$ 14.12 billion between April
countries that is on track to achieve its 2000- March 2023.
targets under the Paris Agreement. • More than Rs. 5.2 lakh crore (US$ 70
• ICRA expects renewable energy billion) has been invested in India’s
capacity addition of 12.5 GW in FY22 renewable energy sector since 2014.
and 45 GW by FY23. • India ranked third on the EY
Renewable Energy Country Attractive
Index 2021.

Source: Central Electricity Authority, MNRE, DPIIT, IWTMA

3
Advantage India

4
Advantage India

1. Robust Demand 4. Increasing Investment

► According to the International Energy
► In June 2021, Prime Minister Mr. Narendra
Agency (IEA), India's installed renewable
Modi stated that the renewable energy energy capacity will reach 174 GW in
capacity in India increased by 250% 2023, accounting for about 37% of the
between 2014 and 2021 and the country country's total energy supply. The report
ranks among the top five globally in terms indicates that India has exceeded its target
of installed renewable energy capacity. of installing 175 GW of renewable energy
► The Central Electricity Authority (CEA) capacity by 2022, with a projected capacity
estimates India’s power requirement to
grow to reach 817 GW by 2030.
1 4 of 280 GW by 2025.
► Rising foreign investment in the renewable
► As the economy grows, the electricity sector (such as US$ 75 billion investment
consumption is projected to reach 15,280 from the UAE) is expected to promote
TWh in 2040 from 4,926 TWh in 2012.
ADVANTAGE further investments in the country.
Most of the demand will come from the real INDIA
estate and transport sectors.
2 3 3. Policy Support
2. Competitive Advantage ► On November 9, Minister for Finance &
Corporate Affairs, Ms. Nirmala
► India was ranked fourth in wind power, fifth Sitharaman, approved the final
in solar power and fourth in renewable Sovereign Green Bonds framework of
power installed capacity, as of 2020. India. The Paris Agreement's Nationally
► Power generation from solar and wind Determined Contribution (NDC) targets
projects are likely to be cost-competitive will be further strengthened by this
relative to thermal power generation in approval, which will also aid in
India in 2025-2030. attracting foreign and domestic capital
to green projects.
► As per the British Business Energy, India
ranks third on renewable energy ► In February 2022, Nepal and India
investments and plans. agreed to form a Joint Hydro
Development Committee to explore the
possibility of viable hydropower
projects.
Note: TWh - Terawatt Hour, PLI - Production-Linked Incentive
Source: Central Electricity Authority, Ministry of New and Renewable Energy, Mercom India, EY, News Sources, BloombergNEF

5
Market Overview and Trends

6
Renewable Energy Sources

Renewable Energy
Sources (RES)

Other forms of
Hydro Energy
renewable energy

Small Hydro Power

Wind Power Bio-Power Solar Power
(Projects ≤ 25 MW)

Urban & Industrial

Biomass Power
Waste Power

Source: Central Electricity Authority (CEA)

7
Generation capacity has increased at a healthy pace… (1/2)

Installed Renewable Capacity Breakup (GW) – April

Installed Renewable Energy1 Capacity (GW) – FY23
2023(cumulative achievement)

200 CAGR 14.58%

172.54 4.94
180
160 Solar Power
10.24
140
120 111.40
Wind Power
100
80 94.43 67.07
87.02 42.86
60 77.64 Bio-Power
69.02
40 57.24
45.92
20 Small Hydro
0
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

▪ The International Energy Agency’s World Energy Outlook projects a growth of renewable energy supply to 4,550 GW in 2040 on a global basis.

▪ Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 14.58% between FY16
and FY23. India has 172.54 GW of renewable energy capacity in FY23.

▪ As of October 2022, 40.6% of the total power installed capacity is from non-fossil-based sources, which fulfils the target of 40% by the end of
2022.

▪ According to the International Energy Agency (IEA), India's installed renewable energy capacity will reach 174 GW in 2023, accounting for about
37% of the country's total energy supply. The report indicates that India has exceeded its target of installing 175 GW of renewable energy capacity
by 2022, with a projected capacity of 280 GW by 2025.

▪ The country plans to reach 450 GW of installed renewable energy capacity by 2030, with 280 GW (over 60%) expected from solar power.

▪ The ambitious target of 450 GW will provide investment opportunities worth US$ 221 billion by 2030.
Notes: GW- Gigawatt, 1Large Hydro power projects not included as they are not included in renewable energy targets of GOI
Source: Central Electricity Authority (CEA), International Renewable Energy Agency (IRENA), MNRE

8
Generation capacity has increased at a healthy pace…(2/2)

▪ Power generation from renewable energy sources (not including Electricity Generation from RES* (billion units)
hydro) stood at 16.18 billion units (BU) in September 2022, up from
14.49 BU in September 2021.

▪ Power generation from renewable energy sources stood at 92.88

180
billion units (BU) between April-August 2022, up from 79.13 BU in the
same period in the previous year.

170.91
160
▪ The country ranks fourth worldwide in terms of the total installed wind
power capacity.

147.25
140
▪ The electricity generation target (Including RE) for the year 2023-24

138.32
has been fixed as 1750 Billion Units (BU). i.e. growth of around 7.2%

126.76
120
over the actual generation of 1624.158 BU for the previous year
(2022-23). The generation during 2022-23 was 1624.158 BU as
compared to 1491.859 BU generated during 2021-22, representing a 100

101.84
growth of about 8.87%
80
▪ Off-grid renewable power capacity has also increased.

81.51
▪ From April 2015-February 2021, India has added 117.9 GW of power 60

65.78
generation capacity, which includes 64.5 GW from conventional
sources and 53.4 GW from renewable sources. 40
▪ In July 2021, the Ministry of New and Renewable Energy (MNRE)
gave the go-ahead to NTPC Renewable Energy Ltd., a 100% 20
subsidiary of NTPC, to build a 4,750 MW renewable energy park at
the Rann of Kutch in Khavada, Gujarat. This will be India's largest 0
FY16 FY17 FY18 FY19 FY20 FY21 FY22
solar park to be developed by the country's leading power producer.

Note: RES - Renewable Energy Source, *Large Hydro power projects not included, SPV - Solar Photovoltaic System, MWeq - Megawatt Equivalent
Source: CEA, Make in India, MNRE, Mercom India, News Articles

9
Solar power generation growth likely to outweigh other sources

▪ Due to its favourable location in the solar belt (400 S to 400 N), India
is one of the best recipients of solar energy with abundant availability.
▪ The installed solar energy capacity has increased by 24.4 times in the Top 10 state-wise solar installations in India (April 2023)
last 9 years and stands at 66.7 GW as of May 2023.
▪ In 2022, till November, India has added 12 GW of solar power Rank State Capacity (GW)
capacity.
▪ During June 2023, the capacity addition from solar energy stood at 1 Rajasthan 3395.19
2275.61 MW.
▪ Solar Power generation during June 2023 compared to June 2022 has 2 Karnataka 1405.50
increased by 16.32 % on an All India basis in all states except Andhra
Pradesh, Dadra and Nagar Haveli and Daman and Diu. 3 Gujarat 1147.51
▪ In the first half of 2022, India has saved US$ 4.2 billion in fuel costs
through solar power generation and 19.4 million tonnes of coal. 4 Tamil Nadu 970.18
▪ India has generated 70.24 BU of solar power in the first nine months
of 2022, a 36% YoY increase. 5 Andhra Pradesh 800.19
▪ Delhi’s Indira Gandhi International Airport (IGIA) has become the first
Indian airport to run entirely on hydro and solar power. 6 Telangana 634.38
▪ In November 2021, the government announced future plans to
increase the funding under the PLI scheme for domestic solar cells
7 Maharashtra 502.49
and module manufacturing to RS. 24,000 crore (US$ 3.17 billion) from
the existing Rs. 4,500 crore (US$ 594.68 million) to make India an
exporting nation. 8 Uttar Pradesh 376.83

▪ The world's largest floating 600 MW solar energy project will be

constructed at the Omkareshwar Dam in the Khandwa district of 9 Punjab 338.65
Madhya Pradesh at the estimated cost of Rs. 3,000 crore (US$ 3.84
billion). The project is expected to begin power generation by FY23. 10 Madhya Pradesh 327.15

Source: CEA, Make in India, India Solar Handbook 2017, MNRE, Mercom India, Bloomberg NEF, Solar Energy Corporation of India, News Articles

10
Growth in hydro power

▪ India has overtaken Japan, becoming the nation with the fifth-largest Installed Hydro Capacity (GW)
hydropower production capacity in the world with a total installed base of
over 51.77 GW, and is only behind Canada, US, Brazil and China
according to the International Hydropower Association (IHA). 50.0
46.21 46.51 46.85 47.00
▪ India has a hydropower potential of around 145 GW, of which over 50 45.29 45.40 45.70
45.0
GW is already being utilised.
▪ According to research by the Council on Energy, Environment and 40.0
Water's Centre for Energy Finance (CEEW-CEF), India's total installed
power generation capacity reached 416 GW in FY23, of which 125 GW 35.0
(30%) came from renewable energy (RE) and 47 GW (11%) comes from
hydro. 30.0
▪ Hydro power projects in India are classified into conventional hydro
25.0
projects and small hydroelectric projects. Small hydro projects are
included in the government’s renewable energy sources (RES) targets.
20.0
▪ Installed capacity from large hydro projects in India increased from 35.9
GW in March 2008 to 46.85 GW as of October 2022, while capacity from 15.0
small hydro plants increased four-fold to 4.92 GW in the same period.
▪ A new hydropower policy for 2018-28 has been drafted for the growth of 10.0
hydro projects in the country. 4.49 4.59 4.68 4.79 4.82 4.92 4.94
5.0
▪ On November 19, Prime Minster Mr. Narendra Modi dedicated the 600
MW Kameng Hydro Power Station in Arunachal Pradesh to the country.
0.0
The project, which covers more than 80 kilometres and costs about Rs. 2017 2018 2019 2020 2021 2022 2023
8,200 crore (US$ 1 billion), is located in Arunachal Pradesh's West
Kameng District. Hydro Small Hydro Projects

Source: CEA, Ministry of Power, News Articles; *- Until October 2022

11
Strategies Adopted

12
Strategies adopted (1/2)

1 2 3

GREEN CITIES
DEVELOPING RENEWABLE ENERGY HYBRID ENSURING ROUND-THE-CLOCK
▪ In December 2020, the Prime PROJECTS POWER (RTC) SUPPLY
Minister unveiled a plan to
create at least one ‘green’ city in ▪ Hybrid energy projects combine two or more renewable ▪ Renewable resources such as solar
each state that will be powered power sources, such as solar and wind power, to and wind are time-bound and can
by renewable energy sources, reduce inconsistencies and provide stable power only produce power when there is
primarily solar energy. supply. sufficient sunshine and wind.
▪ The houses in these ‘green’ ▪ Round-the-clock (RTC) supply
▪ The wind-solar hybrid model has gained popularity in
cities will have roof-top solar mechanism can overcome these
India since the National Wind-Solar Hybrid Policy 2018.
energy panels and solar street natural limitations by bundling power
Hybrid tenders have received great responses in the
lamps. Additionally, waste-to- from other sources, such as thermal
market, with Adani and ReNew power being key
energy plants will be set up to power, with renewable power
players.
generate renewable energy. sources. Simply put, conventional
▪ More than 12.3 GW of collocated tenders have already and non-conventional resources can
▪ Union Budget 2023-24 envisions
been issued. Other active participants include SB complement each other to provide a
to create sustainable cities of
Energy, Greenko, Tata Power, Vena Energy, JSW sustainable and stable power grid.
tomorrow. To translate this,
Group, ABC Renewables, AMP Energy and ACME. ▪ Such bundled power is supplied to
states and cities will be
encouraged to undertake urban ▪ Wind-solar hybrid projects with capacities of 1,440 MW distribution companies (DISCOMs),
planning reforms and actions to are under implementation in Rajasthan and Tamil Nadu. eliminating the need for DISCOMs to
transform our cities into balance power.
'sustainable cities of tomorrow.’
Source: CEA, Company Website, Livemint, Mercom, GOGLA, News Articles, KPMG

13
Strategies adopted (2/2)

4 5 7

DECENTRALISED SOLAR POWER SHIFT TOWARDS NON-

DRAFT ELECTRICITY RULES, 2021
▪ Selco Solar Pvt Ltd started installing solar CONVENTIONAL ENERGY
▪ In August 2021, the Indian government proposed
panels in slums which were not ▪ India’s leading conventional energy
new rules for the purchase and consumption of
connected to the grid as a pilot project in producers are shifting towards non-
green energy.
2008, and has since expanded into other conventional energy resources to
▪ The rules were part of the government’s measures states as well. They have also used achieve their sustainability goals
to encourage large-scale energy consumers, standardised financial packages to get and contribute towards generating
including industries, to leverage renewable energy the slum people to move away from clean energy.
sources for regular operations. kerosene to solar power.
▪ A rapid shift from fossil fuels to
▪ Uniform Renewable Purchase Obligations (RPO) ▪ The implementation of decentralized solar clean renewable energy could lead
have been introduced, requiring all electricity plants under the government’s Pradhan to the creation of 1.5 crore new
distribution licensees to purchase or produce a Mantri Kisan Urja Suraksha evam Utthan jobs in India by 2025 and increase
specified minimum quantity of their total Mahabhiyan (PM-KUSUM) program can savings on electricity bills.
requirements from renewable energy sources. boost farmer incomes, help India reach
50% of non-fossil power capacity by
▪ The rules mandate that the electricity generated is
2030, and improve the financial viability of
to be used for the plant’s own requirements and not
distribution companies (DISCOMs)
be diverted to the electricity grid. The new rules
also emphasise on the use of hydrogen energy. ▪ Off-grid solar power is growing at a fast
pace in India, with sales of 392,000 off-
grid solar products in the first half of 2021.
Source: CEA, Company Website, Livemint, Mercom, GOGLA, News Articles, KPMG

14
Growth Drivers

15
Renewable energy growth drivers

Government commitments
▪ Prime Minister Mr. Narendra Modi initially set the target of installing 175 GW of renewable energy capacity by 2030, but has now increased
it to 450 GW.
▪ US$ 2.4 billion National Hydrogen Mission for production of 5 MMT by 2030 and US$ 36 million additional in budget.
▪ The Indian government's commitment to reaching net-zero emissions by 2070 and increasing its renewable energy target to 500 GW by
2030 at the COP26 summit has provided great support to the industry and spurred unprecedented growth.
▪ In October 2021, the Ministry of Power announced a new set of rules aimed at reducing financial stress for stakeholders and safeguarding
timely cost recovery in electricity generation.
▪ In November 2021, the government announced future plans to increase the funding under the PLI scheme for domestic solar cells and
module manufacturing to Rs. 24,000 crore (US$ 3.17 billion) from the existing Rs. 4,500 crore (US$ 594.68 million) to make India an
exporting nation.
▪ Solar city per state-approved and approved setting up 59 solar parks of 40 GW across the nation. The government is also giving a push to
Floating PV Projects.

Investments

▪ Around US$ 2.8 trillion will be invested in energy in 2023. More than US$ 1.7 trillion is going to clean energy, including renewable power,
nuclear, grids, storage, low-emission fuels, efficiency improvements and end-use renewables and electrification.
▪ In August 2022, Norfund, who manage the Norwegian Climate Investment Fund, and KLP, Norway’s biggest pension company, signed an
agreement to buy a 49% share of a 420 MW solar power plant in Rajasthan for Rs. 2.8 billion (US$ 35.05 million).
▪ Investment in the renewable energy in India reached a record US$ 14.5 billion in FY22, an increase of 125% over FY21.
▪ In 2022, India's renewable energy sector is expected to boom with a likely investment of US$ 15 billion, as the government focuses on
electric vehicles, green hydrogen, and the manufacturing of solar equipment.

Source : KPMG, MNRE, News Sources

16
Renewable energy growth drivers

Favourable policies and incentives

▪ In April 2021, the Ministry of Power (MoP) released a draft of the National Electricity Policy (NEP) 2021 and has invited suggestions from all
stakeholders such as Central Public Sector Undertakings, Solar Energy Corporation of India, power transmission companies, financial
institutions such as the Reserve Bank of India, Indian Renewable Energy Development Agency, HDFC Bank, ICICI Bank, industrial, solar
and wind associations and state governments.
▪ Proposed solar cities and parks: Solar city per state-approved and approved setting up 59 solar parks of 40 GW across the nation. The
government is also giving a push to Floating PV Projects.
▪ National Green Hydrogen Mission: The Union Cabinet approved the National Green Hydrogen Mission with a total initial outlay of INR
19,744 Cr, including an outlay of INR 17,490 Cr for the SIGHT programme, INR 1,466 Cr for pilot projects, INR 400 Cr for R&D, and INR 388
Cr towards other Mission components.
▪ Atmanirbhar Bharat: PLI scheme in Solar PV manufacturing with financial outlays of INR 24,000 Cr introduced under Atmanirbhar Bharat.
Imposition of Basic Customs Duty of 25% on Solar Cell & 40% on Solar PV Modules w.e.f. 01.04.2022.
▪ Off-shore Wind Energy: The medium and long-term target for off-shore wind power capacity additions, are 5 GW by 2022 and 30 GW by
2030.
▪ Wind-Solar Hybrid Policy: In 2018, a national policy was announced to promote a large grid-connected wind-solar PV hybrid system for
efficient utilization of transmission infrastructure and land. A way to address the intermittency challenge of one source of renewable power is
to combine solar and wind, achieving better grid stability. It provides flexibility in the share of wind and solar components in hybrid projects,
however, the capacity of one resource must be at least 25% of the rated power capacity of another resource.

Merger & acquisitions

▪ In June 2022, Adani New Industries acquired Total Energies for US$ 12.50 billion.
▪ In April 2022, Solenergi Power acquired Shell Overseas Investments for a value of US$ 1.55 billion.
▪ In October 2021, Reliance New Energy Solar Ltd. (RNESL) announced two acquisitions to build more capabilities.
▪ In October 2021, Adani Green Energy Ltd. (AGEL) acquired SB Energy India for US$ 3.5 billion to strengthen its position in the renewable
energy sector in India.
▪ In August 2021, ReNew Power merged with Nasdaq-listed special purpose acquisition company (SPAC) RMG Acquisition Corp. II (RMG II),
which pegged the enterprise value of the new enterprise at US$ 8 billion.

Source : KPMG, MNRE, News Sources

17
Government policies

1. Repowering policy 6. Government Schemes

• In November 2021, the government announced future
• Promotes optimum utilisation of wind energy
plans to increase the funding under the PLI scheme
resources by creating facilitative framework for
for domestic solar cells and module manufacturing to
repowering.
Rs. 24,000 crore (US$ 3.17 billion) from the existing
• Providing interest rate rebate of 0.25% over and
Rs. 4,500 crore (US$ 594.68 million) to make India an
above the existing interest rate rebate offered to new
exporting nation.
•
wind energy projects.
All fiscal and financial benefits offered to new wind 1 6 • In June 2021, the Ministry of Power proposed to
revamp the ‘Renewable Energy Certificate (REC)
power projects will be extended to repowering
Mechanism’ and circulated a discussion paper for
projects.
comments from stakeholders in the power sector.

2. Wind-solar hybrid 5. Clean Energy

policy 2 5 Innovation
• In November 2022, India and Sweden
• Aims to achieve a hybrid wind-solar capacity entered into a India-Sweden Green Transition
of 10 GW by 2022. Partnership to support the exchange of
• Hybridisation of the two technologies will help knowledge in the energy space.
in:
▪ Minimising variability 3 4 • In June 2021, India launched the Mission
Innovation CleanTech Exchange, a global
▪ Optimal utilization of infrastructure, initiative that will create a whole network of
including land and transmission systems incubators across member countries to
accelerate clean energy innovation
3. Renewable Purchase 4. Developing solar parks
Obligations (RPOs) and ultra mega solar
• RPO’s are a mechanism by which state electricity commissions
are obliged to purchase certain percentage of power from power projects
renewable energy sources. • The Solar Energy Corporation of India (SECI)
• Also, floor prices of the RPO have been set to provide certainty implemented large-scale central auctions for solar
to companies. The floor price has been set at US$ 144 per MW. parks and has awarded contracts for 47 parks with
over 25 GW of combined capacity.
Note : GW - Gigawatt
Source : Ministry of New and Renewable Energy (MNRE), News Articles

18
Union Budget 2022 and 2023
2. NET ZERO EMISSIONS TARGET 3. PUSH GREEN ENERGY, REDUCE
• In Budget 2023-24, Green Growth identified is one of the nodes in the SAPTARISHI
(7 priorities). COAL EMISSIONS
• In Budget 2023-24, pumped storage projects received a push with a detailed • In the Union Budget 2022-23, the allocation for the Solar
framework to be formulated. Energy Corporation of India (SECI), which is currently
responsible for the development of the entire renewable
• In Budget 2023-24, US $1.02 billion (Rs. 8,300 crore) central sector support for ISTS energy sector, stood at Rs. 1,000 crore (US$ 132 million).
infrastructure for 13 GW renewable energy from Ladakh was announced.
• The government is planning the development of Saksham
• Budget 2023-24, Investment of Rs. 20,700 crore (US$ 2.50 billion) including central Anganwadis with clean energy facilities.
support of Rs. 8,300 crore (US$ 1.00 billion) for strengthening of interstate
transmission system for evacuation and Grid Integration of 13 GW renewable energy • Clean energy will reduce pollution levels as villages become
from Ladakh. self-sustainable with their use of clean energy.

• Budget 2022-23 stated plans to provide financial support to allow coal-fired power • This is a forward step towards India’s goal of becoming a net
plants to co-fire biomass pellets at a rate of 5-7%. zero emissions country by 2070.

• This will boost farmers' income and reduce air pollution and curb stubble burning,
which reduces greenhouse gas emissions by 38 million tonnes a year. 4. BUDGET FOR OTHER
ALIGNED MINISTRIES
• In the Union Budget 2022-23,
1. PLI SCHEME FOR SOLAR 2
MODULES 3 the allocation for ‘Hazardous
Substances Management’
stood at Rs. 4.5 crore (US$
• The government allocated Rs.
594,000).
19,500 crore (US$ 2.57 billion)
• The allocation for the Central
for a PLI scheme to boost
Pollution Control Board,
manufacturing of high-efficiency
responsible for tackling
solar modules.
• The government will prioritise 1 4
pollution around the country,
remained at Rs. 100 crore
the full integration of (US$ 13.2 million), the same
manufacturing units into solar as the year before.
photovoltaic (PV) modules.

Notes : GW - Gigawatt, MW - Megawatt, ckm - circuit kilometres

Source : Ministry of New and Renewable Energy (MNRE), Make in India, International Labour Organization , Bloomberg Quint

19
Increasing investments, FDI inflows and M&As

▪ India’s liberal foreign investment policy permits 100% FDI in the renewable energy New Investments in Clean Energy in India
sector. (US$ Billion)
▪ The International Renewable Energy Agency (IRENA), in partnership with the Indian
G20 Presidency, launched a new report on how low-cost finance can accelerate the
30
energy transition.
▪ In February 2023, IREDA announced to establish an office in Gujarat’s GIFT city to
finance renewable energy projects in foreign currency. 25
▪ Ayana Renewable Power Pvt Ltd (Ayana) announced plans to set up renewable 25.0
energy projects totaling 2 gigawatts (GWs) with an investment of Rs. 12,000 crore
(US$ 1.53 billion) in Karnataka. 20
▪ In February 2022, Husk Power Systems, a renewable energy company working
towards rural electrification, secured a US$ 4.2 million loan from the Indian Renewable
15
Energy Development Agency (IREDA).
▪ In February 2022, Virescent Renewable Energy Trust (VRET), a renewable energy
infrastructure investment trust, raised US$ 87 billion through a domestic bond 10 10.8
issuance. 9.3
▪ In December 2021, India's largest energy provider, Tata Power, was awarded a
contract by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) 5 6.2
to set up a 300 MW wind-solar hybrid power plant.
▪ In October 2021, the UAE announced investment of US$ 75 billion in India and 0
collaborate on clean energy projects. 2018 2019 2020 2023
▪ In October 2021, Adani Green Energy acquired SB Energy India for Rs. 26,000 crore
(US$ 3.5 billion), making it India’s biggest renewable sector M&A deal.
▪ In August 2021, Copenhagen Infrastructure Partners (CIP) signed an investment
agreement with Amp Energy India Private Limited, to facilitate joint equity investments
of more than US$ 200 million across Indian renewable energy projects.

Note: PSU – Public Sector Undertaking

Source: DPIIT, MNRE, News Articles

20
Increasing FDI inflows

Major FDI Investments in Renewable Energy Sector

Foreign Collaborator Country Indian Company FDI Equity Inflow (US$ mn)

Asian Development Bank India Avaada Energy Pvt Ltd. 50

Asian Development Bank Philippines Renew Power Ventures Pvt. Ltd. 44.69

AIRRO Singapore Pte Ltd. Singapore Diligent Power Pvt. Ltd. 41.07

ORIX Corporation Japan Lalpur Wind Energy Pvt. Ltd. 37.75

ENEL Green Power

Netherlands BLP Energy Pvt. Ltd. 32.61
Development B.V.

DEG-DEUTSCHE-InvestitionsUnd- WELSPUN Renewables

Germany 32.50
Entwicklun Energy Pvt Ltd.

ENERK International Holdings

Seychelles RKM POWERGEN Pvt Ltd. 32.50
Ltd.

OSTRO Renewal Power Limited Mauritius OSTRO Energy Pvt Ltd. 32.21

AREVA Solar Inc. U.S.A AREVA Solar India Pvt Ltd. 31.53

21
Opportunities

22
Huge untapped potential

▪ India is estimated to have renewable energy potential of 900 GW from Renewable Energy Potential in India
commercially exploitable sources - Solar energy: 750 GW; Wind
power1: 102 GW; Bio-energy: 25 GW; and Small Hydro: 20 GW.

▪ The country plans to reach 450 GW of installed renewable energy 800.00

750.00
capacity by 2030, with 280 GW (over 60%) expected from solar
power. 700.00
▪ 975.60 MW of renewable energy capacity was added in January
2022. 600.00
▪ India had a fully renewable energy capacity of 168.9 GW, including
67.82 GW of solar power and 43.20 of wind power, as of 30th May 500.00
2023.

▪ In India, there is an estimated potential of about 8,000 MW of tidal 400.00

energy.

▪ Around 15,000 MW of wind-solar hybrid capacity is expected to be 300.00

added between 2020-25.
200.00
▪ According to a new report by GWEC and MEC Intelligence (MEC+),
between 2021 and 2025, India is expected to install ~20.2 GW of wind 102.00
power capacity, an increase of ~50% compared with the 39.2 GW 100.00
wind power capacity installed in the country in 2020-21. 20.00 25.00
0.00
Small Hydro Bio-Power Wind Power Solar Energy
Power

Notes: GW - Gigawatt, 1Wind Power potential is at 80 metres above ground level, MW-megawatt
Source: Ministry of New and Renewable Energy (MNRE), Central Electricity Authority (CEA), IIT Chennai Study

23
Rising power demand

▪ India’s ambitious renewable energy goals are transforming its power Peak Power Demand in India (GW)
sector. The rising population and widespread electrification in rural
homes are fuelling the demand for energy to power homes, 800.00
businesses and communities.

▪ The Central Electricity Authority estimates India’s power requirement 700.00

690.0
to grow to reach 817 GW by 2030.
600.00
▪ India's power consumption rose by 8.4% to 139 billion units in July
2023.
500.00
▪ The peak power demand in the country stood at 210.79 GW on June
9, 2022.
400.00
▪ Solar power and wind generation recorded an all-time high of 43.1 GW
on July 27, 2021. 300.00
▪ According to data from the Ministry of Power, India's power
consumption increased 1.64% YoY in October 2022 to 114.64 billion 200.00

210.8
units (BU).

164.1
164.1
159.5
153.4
▪ India has an electricity-GDP elasticity ratio of 0.8. Thus, 7% growth in 100.00

energy supply will be required if India is to grow at 8%. This shows

that electricity will continue to remain a key input in India’s GDP 0.00
growth.

Note: GW - Gigawatt, E - Estimated

Source: Business Standard, Capacity addition estimates by CEA

24
Move towards renewable sources

▪ It has been estimated that renewables will comprise 49% of India’s power RES as Percentage of Total Installed Capacity (%)
generation by 2040.
▪ In Budget 2023-24, pumped storage projects received a push with a
detailed framework to be formulated. 41.40%
▪ Solar and wind energy currently contribute more than 50% of the total
renewable capacity of the country. According to data, India had a fully
renewable energy capacity of 168.9 GW, including 67.82 GW of solar
power and 43.20 of wind power, as of 30th May 2023.
• In Budget 2023-24, US$ 1.02 billion (Rs. 8,300 crore) central sector support 27.77%
for ISTS infrastructure for 13 GW renewable energy from Ladakh was
24.71%
announced. 23.51%
21.80%
▪ Over the last few years there has been an increase in the percentage 20.06%
contribution of renewable energy to total installed capacity. In 2013-14, the 17.52%
contribution was 12.92%, which increased to 29.14% as of October 2022. 14.18%
▪ Replacing coal plants with renewable sources is expected to save India Rs.
54,000 crore (US$ 8.4 billion) annually due to reduced power costs.
▪ About 5,000 compressed bio-gas plants will be set up across India by 2023.
▪ According to the analytics firm British Business Energy, India ranked 3rd
globally in terms of its renewable energy investments and plans in 2020.
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
▪ Enfinity Global, a US-based renewable energy company, has added 205
MW of solar power in India.
▪ In October 2021, Reliance New Energy Solar Ltd. (RNESL), collaborated
with Stiesdal A/S (Stiesdal)—a Denmark-based firm—to manufacture
hydrogen electrolysers and contribute to achieve India’s green energy
transition mission.
Source: Ministry of New and Renewable Energy (MNRE), Central Electricity Authority (CEA), Greenpeace India, Minister of Petroleum and Natural Gas
▪ In June 2021, IKEA announced to launch programmes to help suppliers in
India transit to 100% renewable power. The company has ~50 suppliers in
25
Key Industry Contacts

26
Key industry contacts

Agency Contact Information

National Institute of Solar Energy Gwal Pahari,

National Institute of Solar Energy (NISE) Faridabad, Gurugram, Haryana- 122 003
Website: www.nise.res.in

12th K. M. Stone, Jalandhar - Kapurthala Road, Wadala Kalan,

Kapurthala - 144601 (Punjab), India
Sardar Swaran Singh National Institute of Tel: 91 1822 255544/ 507403/ 507406
Bio- Energy (SSS- NIBE) Fax: 91 1822 255544
Website: www.nibe.res.in

A-2/158, Janakpuri, New Delhi-110058, India

Tel: 91 11 25618472, 45652708
Fax: 25611622
Solar Energy Corporation of India (SECI)
E-mail: [email protected], [email protected]
Web site: www.seci.gov.in

Velachery - Tambaram Main Road , Pallikaranai, Chennai - 600

100
Tel: 91 44 2246 3982/ 83 / 84
National Institute of Wind Energy (NIWE)
Fax: 91 44 2246 3980
Website: www.niwe.res.in

India Habitat Centre Complex, Core- 4A, East Court, 1st Floor,
Lodi Road, New Delhi- 110 003
The Indian Renewable Energy Development
Tel: 91 11 24682214/ 21
Agency (IREDA)
E-mail: [email protected]
Web site: www.ireda.gov.in

27
Appendix

28
Glossary

▪ CAGR: Compound Annual Growth Rate

▪ FDI: Foreign Direct Investment

▪ FY: Indian Financial Year (April to March)

▪ GOI: Government of India

▪ Rs.: Indian Rupee

▪ US$: US Dollar

▪ Wherever applicable, numbers have been rounded off to the nearest whole number

29
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11
2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95 2012 53.49
2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03
2014-15 61.15 2015 64.15
2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89 2019 69.89
2019-20 70.49 2020 74.18
2020-21 73.20 2021 73.93
2021-22 74.42 2022 79.82
2022-23 78.60 2023* 82.54

Note: *- Until August 2023

Source: Foreign Exchange Dealers’ Association of India

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