India Creates New Record By Adding 18.5 GW Of Renewables In 2023-24

India Creates New Record By Adding 18.5 GW Of Renewables In 2023-24

India created a new milestone in 2023-24 by adding one of the highest-ever additions of renewable energy in the country. The latest statistics shared by the Ministry of New and Renewable Energy (MNRE) revealed that during the last fiscal year, the country added a total of 18.5 GW of total renewable power, thanks to a late kick in March. However, these numbers are still below targeted additions of over 25 GW per annum to meet national commitments of 500 GW of renewable energy by 2030.

The Fy24 numbers include the addition of 15 GW of solar power and 3.2 GW of wind energy during the period. A close analysis of the capacity additions in India in the last six years revealed that it was the highest-ever addition of renewable power since 2018-19. With the latest additions, India’s total solar capacity has now touched 81.8 GW while its wind capacity going upto 45.9 GW. India’s total renewable energy capacity touched 143.6 GW by the end of 2023-24. 

Fuel-wise capacity of renewable energy in India.

Data derived from the monthly installed capacity reports from the Central Electricity Authority (CEA) said that the country added a total of 15.3 GW of renewable power in 2022-23, 15.5 GW in 2021-22, 7.4 GW during 200-21, 9.4 GW in 2019-20 and a total of 8.6 GW between 2018-19. 

MNRE data revealed that 2023-24 emerged as one of the brightest in adding new solar capacities. During the period, India added a record total of 15 GW of new solar capacities. This was the highest ever since 2018-19. 

On the other hand, the country also added the highest ever (since 2018-19) of 3.2 GW of wind energy capacities during 2023-24. The impetus in the solar power additions and wind power aided the country to create new records.

Year-wise additions of renewable power in India since 2018-19.

So what changed in 2023-24

The Indian government in the last few years made several tweaks in their policies to boost the growth of renewables in the country. With Prime Minister Narendra Modi making a commitment to go net-zero by 2070 at COP26, a lot seems to have happened in the green industry in the country.

Some of the policy tweaks involved bringing the Green Energy Open Access Rules, waiving the inter-state transmission projects for new wind projects, imposing segregated renewable purchase obligations, introducing renewable generation obligations and others. The plan of the government to make a trajectory of the year-wise tender capacity mainly spearheaded by the CPSEs also seems to bolster the capacity of the developers to make their roadmaps accordingly. 

The global solar market also seems to have favoured the solar power developers last year. With the global solar module prices dropping to record lows, the developers found it a golden time to invest more at lower input costs. 

In the last one year the domestic module production capacity has also ramped up, promoting the government to reimpose the ALMM scheme by the end of 2023-24. India’s domestic solar module capacity has now reached 37.5 GW as per the last updated ALMM list. 

Outlook for FY25

April 1 brought a major change to the solar market, with the full power of the ALMM regime restored, effectively shutting out Chinese module imports from the country. The onus clearly is on domestic manufacturers to deliver, and deliver at a price developers can take. Between an 80 GW plus pipeline of projects, a renewed push for the agri focused PMKUSUM scheme and of course, the PM Suryaghar Muft Bijli Yojana for households, industry insiders expect additions in FY 25 to be in the range of 16-20 GW , depending on how market conditions change post ALMM. Large developers like Adani Green (4 GW) and NTPC (3 GW) are already comitted to significant numbers. A higher than expected priced market will mean the lower end of the number , while prices staying at even existing levels could mean crossing 20 GW as well. With a further addition of 4 GW in wind energy, total numbers could actually get close to 25 GW in Fy25.