Renewable Energy Industry in India Robust Demand * In June 20 | LBSNAA : OUR DREAM IAS (UPSC)
Renewable Energy Industry in India
Robust Demand
* In June 2021, Prime Minister Narendra Modi stated that renewable energy capacity in India increased by 250% between 2014 and 2021.
* The Central Electricity Authority estimates India’s power requirement to grow to reach 817 GW by 2030. Most of the demand will come from real estate and transport sectors.
Increasing Investments
* Non-conventional energy sector received FDI inflow of US$ 11.21 billion between April 2000 and December 2021.
* Rising foreign investment in the renewable sector (such as the US$ 75 billion investment from the UAE) is expected to promote further investments in the country.
Policy Support
* In the Union Budget 2022-23, the government allocated Rs. 19,500 crore (US$ 2.57 billion) for a PLI scheme to boost manufacturing of high-efficiency solar modules.
* In June 2021, India launched the Mission Innovation CleanTech Exchange, a global initiative that will accelerate clean energy innovation among countries.
Competitive Advantage
* Globally, India ranks fourth in renewable energy capacity and wind power and fifth in solar power capacity.
* In October 2021, India retained its third rank on the EY Renewable Energy Country Attractive Index 2021.
Future Vision
* As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.
* The government is aiming to achieve 227 GW of renewable energy capacity (including 114 GW of solar capacity addition and 67 GW of wind power capacity) by this year i.e. 2022, more than its 175 GW target as per the Paris Agreement.
* The government plans to establish renewable energy capacity of 523 GW (including 73 GW from Hydro) by 2030.
* It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy as more efficient batteries will be used to store electricity, which will further cut the solar energy cost by 66% as compared to the current cost.
