- According to Renewable Energy Minister Pralhad Joshi, India has secured $386 billion in commitments to expand its renewable energy capacity to 500 GW by 2030.
- Despite a planned increase in renewable energy, coal-fired power generation in India is expected to rise 8.9% in 2024-25, surpassing the 8.2% growth anticipated for renewables.
According to Renewable Energy Minister Pralhad Joshi, India has secured $386 billion in commitments from banks and financial institutions to boost its renewable energy capacity by 2030. The announcement was made on Monday, September 16, 2024, during the annual Renewable Energy Investor’s Meet and Expo held in Gujarat.
Minister Joshi highlighted that these commitments come from various stakeholders, including states and Union Territories, developers, manufacturers, and financial institutions. The goal is to substantially increase renewable energy capacity, aiming for 500 gigawatts (GW) by 2030. India has made significant progress, adding just over 18 GW of renewable energy capacity in fiscal 2024. This is an improvement from the 15.3 GW added in the previous year, raising the total renewable energy capacity to 153 GW.
Despite these advancements, fossil fuels remain the dominant source of electricity in India, accounting for over 77% of the country’s total electricity generation. Power developers have committed to installing an additional 570 GW of power generation capacity in response to rising energy needs and environmental concerns. Meanwhile, manufacturers have pledged to expand their production capabilities, including 340 GW of new capacity for solar modules and 240 GW for solar cells.
Analysts predict India’s renewable energy capacity additions will accelerate, with expectations to reach approximately 25 GW in the 2024-25 fiscal year, up from the 18 GW added in the previous period. This expected increase is driven by a combination of factors, including rising heatwaves and increased economic activity, which have collectively boosted the demand for electricity by around 8% annually since the pandemic began.
However, the surge in electricity demand is also expected to lead to a rise in coal-fired power generation. India anticipates an 8.9% increase in coal-fired power output for 2024-25, surpassing the 8.2% growth projected for renewable energy output. This growth includes contributions from various sources such as solar, wind, small hydro plants, and biomass power.
The substantial financial commitments and planned expansions reflect India’s strategic push towards a more sustainable energy future. By enhancing its renewable energy infrastructure and production capabilities, India aims to reduce its reliance on fossil fuels while addressing its economy’s growing energy demands.