As the once barren and arid landscapes of India are transformed with the installation of solar panels and the erection of large wind turbines along the coastline, the nation has emerged as a leading player in the realm of clean energy. India’s installed renewable energy capacity has surpassed 200 gigawatts, with investment projections set to double, reaching over $32 billion by 2025.
According to the International Energy Agency, India’s annual renewable capacity additions are anticipated to outpace any other major economy, including China, through to 2030. The goal is to see more than a fourfold increase in capacity additions, from 15 GW in 2023 to 62 GW by 2030. By the end of 2024, India is expected to achieve an installed capacity of 205 GW. Concurrently, the country is ramping up its domestic manufacturing of solar photovoltaic systems and wind turbines as part of a broader commitment to decarbonisation and a shift away from fossil fuels. With a target to become Net Zero by 2070, India aims to reach 500 GW of renewable energy capacity by 2030, striving for an annual addition of 50 GW of renewable energy capacity.
In an interview with PTI, Union Minister for New and Renewable Energy, Pralhad Joshi, stated, “During the past 11 months of 2024 (from 1st January to 30th November), we have achieved a total renewable energy capacity addition of 24.72 GW, compared to 11.83 GW during the corresponding period last year.” Projections indicate that the addition of 50 GW of renewable energy will require an investment of Rs 2,75,000 crore, approximately $32.35 billion (based on Rs 85 per USD). Joshi highlighted that 2024 has been a landmark year for the renewable energy sector and affirmed, “We are diligently working to drive the sector’s growth.”
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He further shared that in December 2023 alone, 1.23 GW of renewable energy capacity was added, bringing the total for 2023 to 13.06 GW. The cumulative capacity added from January to November 2024 comprises 20.85 GW of solar power, 3.22 GW of wind power, 0.50 GW of bio power, and 0.09 GW of small hydro power, along with 0.06 GW of large hydro power, contributing to 86.86% of the total installed power generation capacity added during this period (28.46 GW). “For the first time in 2024, we have secured a record commitment of Rs 32.45 lakh crore,” he added.
Regarding the PM-Surya Ghar Muft Bijli Yojana, which aims to install rooftop solar systems and provide free electricity up to 300 units per month for a million households, Joshi reported over 1.5 crore registrations and more than 6.85 lakh installations to date.
Addressing challenges anticipated in 2025, he mentioned the need to develop new policies to further lower the costs associated with Green Hydrogen and encouraged remaining states and Union Territories to establish their Green Hydrogen policies.
Joshi noted that acquiring additional standards in various categories, including hydrogen production, storage, transportation, as well as applications in aviation and railways, poses a challenge. Nonetheless, he is optimistic about India’s potential for an additional production capacity of 7.80 lakh MTPA of Green Hydrogen and its derivatives by 2025. The Green Hydrogen Certification Scheme is expected to be introduced in 2025, with its draft already available for stakeholder feedback.
The ministry aims to promote the use of hydrogen in sectors that are challenging to decarbonise and considers setting up a Centre of Excellence dedicated to Green Hydrogen research in 2025. The Ministry of New and Renewable Energy has proposed the establishment of testing facilities for Green Hydrogen to develop a robust standards and regulatory framework.
Sandeep Agarwal, Founder and MD of Greenzo Energy India, remarked that the success of 2025 hinges on establishing public-private partnerships, fostering innovation, and ensuring that the green hydrogen roadmap is both visionary and practical.
Debi Prasad Dash, President of the India Energy Storage Alliance, stated, “2025 will be a crucial year for the sector, with an estimated cumulative market demand of around 250 gigawatt-hours for battery energy storage by 2032.”
Devansh Jain, Executive Director of INOXGFL Group, suggested that India must expedite project awards and the signing of Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs), as well as provide policy directives and capitalisation support for nodal agencies. He also called for a dedicated low-cost financing line to support the approximately $2 trillion needed for these renewable energy projects.
Prafulla Pathak, President of the Solar Energy Society of India, emphasised the necessity for a policy framework governing Solar Thermal technology, stating that advancements in this sector will be crucial for reducing fossil fuel use.
Girishkumar Kadam, Senior Vice President and Group Head – Corporate Ratings at ICRA, called for measures at the policy level to enforce Renewable Purchase Obligation (RPO) requirements statewide, which will enable timely signing of PPAs and PSAs by state distribution companies for tendered projects. He highlighted that the levelised cost of Green Hydrogen and hydrogen-derived products remains significantly higher than that of fossil fuel-derived products.
Vineet Mittal, Chairman of the CII Task Force on Green Hydrogen, pointed out that upgrading the grid and building new transmission lines to facilitate renewable energy is a significant obstacle. He stressed the urgent need for a dedicated Inter-State Transmission System network that can handle 100 GW of power from renewable-rich states like Rajasthan, Madhya Pradesh, and Gujarat within the next two years.
While government initiatives such as Production-Linked Incentives and the Approved List of Models and Manufacturers have stimulated solar module and cell manufacturing, Mittal called for a clear roadmap for manufacturing additional components, including glass, wind blades, and transformers.
Green hydrogen production and infrastructure costs necessitate subsidies and research and development support, with an emphasis on scaling hydrogen storage and transportation infrastructure.
Ankur Kumar, CEO of Essar Renewables, conveyed that as 2025 approaches, emerging technologies such as floating solar, offshore wind, and green hydrogen present significant opportunities.
Atanu Mukherjee, CEO and President of Dastur Energy, asserted that India’s renewable energy ambitions require a robust policy framework that reduces costs, enhances reliability, and cultivates domestic capabilities.
Amit Uplenchwar, Director of Kalpataru Projects International Ltd (KPIL), indicated that the national electricity plan envisions substantial investments in line and grid infrastructure to accommodate both traditional energy and 500 GW of renewable energy capacity by 2030, in addition to over 600 GW by 2032.
To achieve these ambitious targets, he stressed the need for expedited project awards, the establishment of a single-window Right of Way clearance mechanism, the development of a broader supplier base for key transmission infrastructure products, and fast-tracked project closure and commissioning. He also underscored the importance of tightening pre-qualification prerequisites to ensure participation by only qualified and trustworthy partners.
