As part of India’s NDC commitment, target was set to 175GWs of renewable power capacity by 2022 (a four-fold increase from 40GW) – however, India has reached just 53% of this target.
Key Stats
Wind and solar together account for about 80% of the power generated through renewable energy sources.
- · However, the share of wind energy has reduced to 44% from 52% in 2017-18, while that of solar has increased from 25% to 39%.
- · Among the top 15 producers of electricity, India was ranked 11th in the share of renewable energy in its mix.
- · The International Energy Agency’s landmark India Energy Outlook report for 2021 sees the country leading the growth in energy demand till 2040
- · India’s RE capacity addition averaged to just 12 GW annually, against the required 20GW to reach the target.
- Only few states could meet their capacity addition targets as challenges like falling RE tariffs, legal uncertainties, COVID impact remains.
- Solar tariffs have dipped around 50% auctioning at Rs. 100 per unit (kWh). o This falling tariff make state DISCOMs to hold out any new power purchase agreements for better price realization (or) even re-negotiate existing agreements to reduce their costs.
- · Solar power was key to meet the target, as 100GW (of the 175GW) was allotted to it. As of January 2021, only 48GW of solar energy has been added – which is less than the target.
- · Another issue is the actual renewable production capacity. Even with a 25% power capacity, the production has remained lower at 9%.
- · Chronic revenue shortfalls in DISCOMs have led to a large backlog in payments to energy producers
