India’s renewable energy capacity needs to grow at 16% CAGR to reach 450 GW by 2030

India needs to add new renewable energy capacity at a compound annual growth rate (CAGR) of 16% to reach ‘450 GW by 2030’ from 90.5 GW installed currently, according to a new report by CEEW Centre for Energy Finance.

The report said India added 1019 MW of solar capacity in the first quarter of FY2020-21—including 717 MW grid-scale and 302 MW rooftop—contributing nearly 84% of the 1207 MW RE capacity addition (solar, wind, and bio-power) during the period.

As of June 30, the country’s installed RE capacity from solar (utility-scale and rooftop), wind, and biomass reached 90.5 GW.

Leading developers

The report added that despite Covid-19, 12 GW of solar and 400 MW of solar-wind hybrid capacity was sanctioned/auctioned in the first quarter—equivalent to an impressive 14% of India’s aggregate installed RE capacity of 87.7 GW.

However, it highlighted that the capacity sanctioned was highly concentrated in the hands of a few developers. Adani Green Power led with 6 GW of RE capacity approved in Q1 FY21, followed by Azure Power (2 GW) and Renew Power (800 MW).

The report expects the market concentration to remain high going forward as the dominant players will have an edge in raising and pricing capital at the scale required to match India’s ambitious RE capacity additions.

“Adani Green Energy exercised its greenshoe option to develop an additional 6 GW of solar capacity under the manufacturing linked tender (1.5 GW additional solar manufacturing). This (6 GW) is reportedly the single largest solar capacity award to date globally”—the report stated.

“Active participation from companies backed by foreign investors in the SECI 2 GW auction drove solar tariffs to their all-time low of Rs 2.36/kWh”—it added.