India will likely fall over 104 GW short of the 2030 renewables target under its current market scenario and growth trend. The nation will need to add over 38 GW of renewable capacity annually during the nine years from 2022 to 2030 to achieve its target, says a new report by GlobalData.
India aims to increase non-fossil power capacity to 500 GW and meet 50% of the country’s electricity needs through renewables by 2030. It also targets net-zero emissions by 2070. India mainly plans to achieve these long-term climate goals through capacity additions in solar and exploring offshore wind potential.
However, after including large hydro under the definition of renewables, the report stated that the country is likely to achieve its 2022 target but may miss out on the solar-specific target and fall short of the 2030 target.
Attaurrahman Ojindaram Saibasan, a power analyst at GlobalData, said, “India is already focusing on rooftop solar installations along with large ground-mounted solar PV projects. As part of the plan, India approved 45 solar parks with a total capacity of 37 GW under its solar park scheme in September 2021.
“India is situated in a solar belt and gets a significant amount of solar diffused horizontal irradiance and global horizontal irradiance. The top solar power-rich states are Rajasthan, Karnataka, Gujarat, Andhra Pradesh, Telangana, and Maharashtra. Regulatory bodies in India have drafted attractive policies and schemes to boost the renewable energy sector. For instance, the ministry of new and renewable energy (MNRE) provides custom and excise duty benefits to the solar rooftop sector to propel growth.”
Additionally, a new hydropower policy for 2018-28 has been drafted for the growth of hydro projects in the country. To increase hydropower generation, the government has granted renewable energy status for large hydro.
The government has also been promoting wind power projects by providing various fiscal and promotional incentives. Some of the most important support schemes include accelerated depreciation, excise duty exemptions to manufacturers, concessional import duties on certain components of wind electricity generators, and a tax holiday on income generated from wind power projects. These are expected to encourage the private sector participation in renewable power projects.
Saibasan emphasized easing approval processes, pre-identifying land spaces for the development of renewable power, enhancing the grid to connect renewable power plants seamlessly, and investing in battery storage and micro-grids in remote areas to drive capacity additions in the future. He also recommended renewable auctions without delays, strongly enforcing the RPS mechanism, and educating the end-consumers on adopting small-scale systems such as rooftop solar PV.
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