India is swiftly moving towards a green future, witnessing tremendous growth in renewable energy installations, particularly solar energy. This progress signifies that the country is rapidly embracing solar energy, with the government also making efforts to promote green energy through various initiatives.
Let’s delve into how the surge in renewable energy installations, especially in solar energy, aligns with Prime Minister Narendra Modi’s ambitious goal of making India a net-zero emission country by 2070.
What’s Happening?
According to ET Energy World, India set a new record in renewable energy installations by March 2024. As per a report by RayStad Energy, a total of 18.5 GW of renewable energy capacity was installed throughout the year, with a record addition of 7.1 GW in March alone. This surpasses the previous record of 3.5 GW set in March 2022.
This growth is primarily driven by the solar energy sector. Achieving the ambitious goal of attaining 500 GW of non-fossil fuel capacity by 2031-32 set by the Indian government is a significant step in this direction.
How Far is the Target of 500 GW Renewable Energy?
According to Forbes India, India is rapidly advancing towards green energy, evident from the continuous growth in renewable energy. However, there is still a long way to go, primarily because most of the country’s electricity production still relies on fossil fuels like coal, gas, and diesel.
In 2023, 56% of India’s total electricity production came from these fossil fuels. However, the government is aiming to achieve the target of 500 GW of renewable energy by 2032. To accomplish this, an annual increase of 30 GW in capacity is required.
Role of Solar Power in Renewable Energy Growth
As per IBEF, the total installed renewable energy capacity in the country reached 190.57 GW by March 2024, with solar power capacity alone accounting for 81.81 GW. These figures indicate that India is extensively utilizing solar energy to meet its energy needs.
In the direction of promoting renewable energy, the announcement of the Rooftop Solar Program in the interim budget on February 1 stands out. Under this program, provision has been made for providing 300 units of free electricity per month to one crore families. Additionally, SBI recently offered loans for installing solar panels on rooftops, and Tata Power Solar Systems Limited has partnered with Indian Bank for rooftop financing.
What’s in it for Investors?
There is no doubt that renewable energy is one of the fastest-growing sectors in India, and its impact is also visible in the stocks of renewable energy sector companies. It can be estimated from the fact that in the last year, stocks of more than 15 renewable energy sector companies have grown by over 100%, with some companies delivering returns of 450-500%.
You can view the performance of some companies in the renewable energy sector in the graph below:
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What’s Next?
India is the world’s third-largest energy consumer, and currently, not only is India making efforts to meet its own country’s energy needs but also aiding neighbouring countries. We are already exporting electricity to Bangladesh, Nepal, and Bhutan, and a small amount is also exported to Myanmar.
Now, India plans to export renewable energy to countries like the United Arab Emirates (UAE), Saudi Arabia, and Sri Lanka. Presently, India aims to develop domestic capacity and explore opportunities for renewable power trade in the international market. In the coming times, these endeavours will not only make India self-reliant but also establish it as a leading country in green energy globally.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.
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