According to the CEEW Centre for Energy Finance (CEEW-CEF) Market report, Renewable Energy contributed to 71% of India’s 26 GW Power generation capacity in FY 2023-2024.

Key Finding

Installed capacity 

  • The total installed energy capacity has now reached 442 GW.
  • Renewable energy (RE) making up around 33% (144 GW) and hydropower contributing 11% (47 GW).

Coal energy decline

  • For the first time coal’s share in India’s total installed capacity has fallen below the 50% mark.

Renewable energy growth trends

  • Dominance of solar energy, including both grid-scale and rooftop installations, constituting approximately 81% (15 GW) of the total renewable energy addition in FY24. 
  • Wind capacity addition nearly doubled, reaching 3.3 GW compared to 2.3 GW (gigawatt) in FY23.
  • Nuclear capacity (1.4 GW) was added for the first time since FY17.

Auction Records and Innovative Formats

  • Ambitious renewable energy targets drove RE auctions to a record high, with approximately 41 GW of auctioned capacity in FY24. 
  • It also noted that eight auctions with energy storage components, signalling a growing shift towards innovative power procurement formats.

Policy implication and future outlook

  • Around 95% 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.
  • It also highlights a rise in peak power demand, reaching a new high of 240 GW in FY24, attributed to a fast-growing economy and weather anomalies.
  • Introduction of PM Surya Ghar: Muft Bijli Yojana to increase rooftop solar installations in the residential segment, potentially adding 30 GW.
  • Amendments to the Electricity Rules of 2022, mandating the sale of un-requisitioned surplus power on exchanges, are expected to enhance supply-side liquidity and promote competitive prices on power exchanges.

About Renewable Energy

  • Renewable energy refers to energy derived from natural resources that are replenished at a higher rate than consumed.. 
  • Major sources include solar, wind, hydroelectric, wave, ocean thermal, tidal, and biomass power.
  • At the COP26 summit 2021, the Prime Minister announced a goal of attaining 500 GW of non-fossil fuel-based energy by 2030. 
  • India has committed to generating 50% of its electricity from non-fossil fuel sources by 2030 as part of its Nationally Determined Contributions (NDCs) under the Paris Agreement.

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