Renewable Energy now accounts for over 70% of India's new power generation: Report

As per the CEEW Centre for Energy Finance (CEEW-CEF) report, India's total installed energy capacity has now reached 442 GW, with renewable energy constituting approximately 33 percent (144 GW) and hydro contributing 11 percent (47 GW), news agency ANI reported.

For the first time, the proportion of coal in India's total installed capacity dropped below the 50 percent threshold, according to the report.

The report emphasizes that solar energy, encompassing both grid-scale and rooftop installations, remained the dominant force in India's renewable energy (RE) capacity expansion, comprising around 81 percent (15 GW) of the total RE increase in FY24.

Wind capacity expansion nearly doubled, reaching 3.3 GW compared to 2.3 GW in FY23. Moreover, nuclear capacity (1.4 GW) was added for the first time since FY17.

Reflecting India's ambitious goals for renewable energy, RE auctions surged to a record high, totalling approximately 41 GW of auctioned capacity in FY24.

Additionally, the report highlights the conclusion of eight auctions featuring energy storage components, indicating a growing trend toward innovative power procurement formats.

"Around 95 per cent of India's targeted 50 GW annual RE bidding trajectory was met in FY24. Bids of 47.5 GW that were issued are approximately three times the RE capacity that has been added annually in recent years" said Gagan Sidhu, Director, CEEW-CEF was quoted as saying by ANI.

The report also observed an increase in peak power demand, reaching a record high of 240 GW in FY24. This surge was attributed to factors such as a rapidly expanding economy and weather anomalies, including lower-than-anticipated rainfall and above-average temperatures.

"In renewable energy, FY24 saw several policy moves to shift gears beyond utility-scale RE. For instance, PM Surya Ghar: Muft Bijli Yojana was introduced to increase rooftop solar installation in the residential segment, which could result in the addition of 30 GW," said Riddhi Mukherjee, Research Analyst, CEEW-CEF, according to the ANI report.

The report also underscores that the changes implemented by the Ministry of Power to the Electricity Rules of 2022, which mandate the sale of surplus power on exchanges, are projected to bolster liquidity on the supply side and encourage competitive pricing on power exchanges.