Renewable Energy has established itself because the technology of choice for brand spanking new power generation capacity globally. India’s achievements towards transitioning to a secure, affordable and sustainable energy system to power robust economic process are outstanding. India is now the 5th largest marketplace for renewable energy within the world, 4th largest marketplace for wind and 3rd largest marketplace for solar within the world only behind China and US.
Today, India is one among the countries with the most important contribution of renewable energy to the entire energy mix ~ 35% of RE in total electricity generation and its recent status of lowest cost solar energy producer has proven that a shift towards a dominant renewable energy market is imminent.
India is running one among the most important and most ambitious renewable capacity expansion programs within the world of achieving 175GW of RE by 2022 and appropriate policy thrust to support this plan are instrumental in driving up capacity addition.
India’s renewable energy growth story has been a hit story through its compelling business case of maximizing the falling renewable technology costs because the key to future energy decarbonization.
According to IEA, India are going to be the most important contributor to the renewables upswing in 2021 and one among the key forces behind the record global expansion driven by wind, solar PV and hydro power. But it remains to be seen whether India would be ready to achieve this or if there are any headwinds to limit this possibility.
Now amidst the present pandemic situation, one among the segments that has not been affected or the smallest amount suffering from it’s been the renewable energy segment and rightly so. Renewable Energy has defied the difficulties caused by the pandemic, proving robust growthversus other conventional power sources because the whole process of power generation in renewable energy generation is automated with no physical supply of fuel.
The growth of the world has been largely driven by a gamut of things like favourable policy and regulatory framework for accelerated growth of renewables, providing incentives and subsidies for faster adoption, streamlining the approvals and clearance processes for land, regulatory and connectivity approvals.
This has proven that renewable energy is resilient, dispatchable and adaptable and is certainly the longer term of energy.
Having said that, we still need to go an extended way in terms of achieving our targets and making renewable energy mainstream. the world is facing headwinds due to policy uncertainty, curtailment of renewables and delays in payments from state discoms and ongoing execution delays thanks to challenges in land acquisition, availability of evacuation infrastructure and financing.This has led to dampening of investor confidence and affects the economic attractiveness of the world . Moreover, the main target on increasing solar generation and capacity may have come at the value of wind energy, as an outsized amount of wind potential remains under-utilised.
Renewable energy has been a bright spot within the Indian power sector and it’s important that the expansion trajectory is maintained. a gentle flow of funds, policy clarity and simple doing business will make sure that the Renewable Energy success story in India will continue unabated.
(The author is that the MD and CEO, Amp Energy India.)