India Renewable Energy Profile

Table of Contents

Last updated Sept. 17, 2024.

I. Introduction

Renewable energy in India is on an upward trend, reaching an all-time high in 2023. The country has long relied on hydropower as its main renewable energy source, however, tables have turned against it as solar and wind renewable energy systems gain national and global momentum. Plans are set to increase the country’s RE share to 40% by 20311Reuters.–falling short of the IEA NZE scenario of 60% of electricity sourced from renewable energy. 

Despite India’s growing share in renewable energy, contributing 19.5% to the country’s electricity generation, fossil fuels remain to produce the majority of its electricity. India generated 75.13% of its electricity from coal in 2023.2Ember. Coal has entrenched over the country’s infrastructure, and policies, which complicates and delays the transition to renewable energy systems.

II. Current Status of Renewable Energy

Installed capacity of major renewable sources (2023):

  • Solar – 73.11 GW
  • Hydropower – 47.33 GW
  • Wind – 44.74 GW 

Electricity generation of major renewable sources (2023):

  • Solar – 113.41 TWh – 5.79%
  • Hydropower – 149.17 TWh – 7.62%
  • Wind – 82.11 TWh – 4.19%

In 2023, major renewable energy sources generated a total of 344.69 TWh or 17.6% of electricity in the mix. India is the third largest consumer of energy in the world.3Trade.gov. The electricity produced from RE failed to meet the electricity demand of the same year which was 1,947.31 TWh. Due to the lack of RE in the mix, the country relied on 75.13% of fossils to meet its electricity demand.

III. Renewable Energy Potential

With over 1.2 TW of both operating and prospective solar energy capacity (Sum of Construction, Pre-construction, Announced)4Global Solar Power Tracker, GEM., and wind power with over .5 TW5Global Wind Power Tracker, GEM., India has an immense amount of solar and wind power potential to be harnessed.  Upon the completion of these projects, the country could potentially generate 2102 TWh (solar energy) 876 (wind energy) TWh–more than sufficient to meet its demand in 2023. 6Ember.

Despite India’s renewable energy development, it is estimated that the share of RE in the electricity mix will only be 50%.7India’s Policies and Actions, Climate Action Tracker. To be fully independent from fossil fuels and harness the benefits of RE, India must increase its RE targets, and ensure that the development of RE infrastructures and projects are guided by equitable and just principles safeguarding human and ecological rights.

IV. Summary of Renewables Policies and Incentives

India’s Electricity Act of 2003 defines RE as “electricity generated from renewable energy sources” and further specifies renewable sources as “water, wind, sunlight, biomass, bagasse, municipal solid waste and other such sources as approved by the Ministry of New and Renewable Energy.8RE Law India, Lexology. Among its other functions, the Act also mandates the State Commission to “provide suitable measures” for connectivity to the grid and sale of electricity from renewable sources.

India has doubled its manufacturing of solar cells in 2023, reaching 6.6GW of cells and 38GW of modules. This twofold increase in solar cells can be attributed to supportive policies such as the PLI Scheme.9India’s rising prominence in solar PV manufacturing, IEEFA. Moreover, India takes advantage of its high renewable energy potential by initiating the National Solar Mission, which aims to curtail its reliance on fossil fuels, and shift to non-fossil fuels.

Additionally, India is also committed in repurposing and augmenting old wind turbines through the Policy for Repowering of the Wind Power Projects.10Ministry of New and Renewable Energy. Its support for solar systems is also evident with its New Solar Power Scheme which covers solar electrification of households in many states. Furthermore, solar energy shined bright as 2024 began as the Delhi government announced the Solar Policy 2024, which incentivizes households with installed solar-rooftops by significantly reducing their electricity bill to 0.

View comprehensive list of Renewables Policies here.

V. Summary of Identified Challenges

While renewable development is accelerating in India, challenges such as lack of safeguards remain to be a major hurdle to overcome.

  • Lack of sufficient safeguards against social and ecological harms
  • Despite acknowledging the immediate necessity to stop new coal projects, the government backpedalled and is currently promoting coal along with renewables
  • Large sums of renewables are wasted due to government’s support for fossil fuels
  • Large hydropower systems, despite its documented environmental and social harms, are promoted

View comprehensive list of identified challenges here.

VI. Future Outlook

  • By 2030, India’s share of renewables will occupy half of its electricity mix. To reach its set target by 2031 of 60% share from renewables11India’s Policies and Actions, Climate Action Tracker., India must accelerate its development of RES while ensuring that safeguards are established to protect its people and its environment from harm. 
  • India’s long-term strategy involves a Net Zero target by 2070.

VII. Conclusion

  • India’s renewable energy potential is immense if fully utilized.
  • Renewables peaked in 2023, with solar and wind energy, gaining momentum.
  • While lacking, policies that incentivize renewable energy development are in place.
  • Cognizant of the damages caused by fossil fuels, the government remains steadfast in its reliance toward these dirty energy. 
  • Supportive policies for fossil fuels hinder the potential for accelerated development of renewables.
  • By 2031, India aims to have renewables to occupy the lion’s share of its electricity mix.
  • The country’s Net Zero target by 2070 needs to be accelerated to mitigate the escalating impacts of climate change.

References