By 2040, 49% of electricity will come from RE

According to the REN21 Renewables 2020 Global Status Report, investments in renewable energy projects and programmes totalled US$64.4 billion between 2014 and 2019.

By 2040, around 49 percent of the total electricity will be generated by renewable energy. According to the Central Electricity Authority (CEA), by 2029-30, we can expect the share of renewable energy generation to increase from 18 per cent to 44 per cent, even as India’s power requirement grows to 817 GW by 2030, fuelled by increase urbanisation, higher incomes, and a growing population.

As the country’s economy grows, it is poised to transform into a global industrial powerhouse in clean energy, driven by government initiatives like the National Green Hydrogen Mission. The impetus for domestic rooftop solar installation can also benefit several million households. More efficient storage batteries, estimated to cut solar energy costs by 66 percent, also contribute to the revolution. However, many challenges need to be met on the ground before this vision can become a reality.

Key Challenges

The country’s century-old grid needs modernisation to support renewable energy growth and correct energy losses and instability. Challenges also vary by region, which is where unique logistical challenges come in, such as dealing with local authorities and getting environmental clearances. Water availability in large solar parks is a major issue, along with petty theft, so we need to ensure the security of the plant as well. For this, we need a single-window certification process to streamline approvals.

The Indian market is also heavily reliant on imports, and the government’s push towards Atmanirbhar Bharat calls for concerted efforts in this direction. We face challenges in the supply chain ecosystem, where we are still nascent in manufacturing raw materials such as polysilicon and wafers, creating a bottleneck in scaling up production. The government’s mandate to source all solar cells domestically may mean a turning point in the renewable energy landscape.

India, geographically positioned in a tropical area, receives almost 3,000 hours of sunshine, which is extremely beneficial for the solar energy sector. This extensive solar energy potential means that while we can meet our own energy needs, we can also support other nations. Some parts of the country can produce significant solar energy even in cloudy weather.

The country also needs to focus on its R&D facilities to achieve expertise in technology and gain independence in quality control, which will help manufacturers as well in their efforts to establish and scale up units. Regulatory gaps are another area; for instance, the production-linked incentive (PLI) scheme to promote domestic manufacturing of competitive solar PV modules has witnessed delays and inconsistencies across states.

Solar Deployment

Solar deployment in India also struggles with environmental and local government approvals, as there are various legal concerns to address before purchasing a land parcel for a solar project. Additionally, obtaining the right of way for a transmission line is one of the biggest challenges every developer faces. Land acquisition is a critical bottleneck as the complexities of land records, ownership disputes, and overlapping jurisdictions significantly slow progress. Consolidating and digitising land records from the last 30 years can streamline land acquisition.

While the industry continues to steadily battle these challenges, there is undoubtedly a huge opportunity in the renewable energy sector, as seen in the rise in large-scale solar parks and rooftop solar installations. The country’s largest corporations have changed course to focus on clean energy sources, which shows that renewable energy projects have a far quicker return on investment than fossil fuel-based energy. According to the REN21 Renewables 2020 Global Status Report, between 2014 and 2019, investments totalled US$64.4 billion in renewable energy projects and programmes.

Thus, renewable energy has enormous potential for future expansion. Domestic manufacturing is set to propel production and research, supporting India’s goal of increasing employment in the green sector.

Authored by: Varchasvi Gagal, CEO & MD- Datta Infra