India’s energy landscape has witnessed a significant transformation over the past decade, with the share of renewable energy in electricity generation increasing substantially. According to a recent government report, India’s renewable energy share rose to 12.1% in FY24 from 6% in FY15, reflecting the nation’s commitment to clean energy and sustainability. Despite the dominance of coal in India’s energy supply, the growth in renewables, improvements in energy efficiency, and large-scale solar projects have contributed to a more diversified energy mix.

Growth of Renewable Energy in India

Surge in Renewable Energy Contribution

The renewable energy sector in India has achieved remarkable growth over the last nine years, driven by favorable government policies, increased investments, and technological advancements. In FY24, the share of renewables in electricity generation stood at 12.1%, up from 6% in FY15, indicating a two-fold increase in the contribution of solar, wind, and other clean energy sources.

Key Drivers of Renewable Energy Growth

1. Government Initiatives and Policy Support
   India’s National Solar Mission, Green Energy Corridor Project, and Production-Linked Incentive (PLI) Scheme have played a pivotal role in promoting renewable energy adoption. These policies have attracted investments and encouraged private sector participation in the sector.

2. Increased Investment in Solar and Wind Projects
   Large-scale solar and wind power projects have contributed significantly to the rise in renewable energy share. The government’s focus on expanding solar capacity through utility-scale and rooftop solar projects has been instrumental in driving this growth.

3. Technological Advancements and Cost Reductions
   The decline in solar module costs and improvements in energy storage technologies have made renewable energy more affordable and accessible, further accelerating its adoption.

Per Capita Energy Consumption Increases by 25.4%

India’s per capita energy consumption witnessed a 25.4% increase over the past nine years, rising to 18,410 megajoules per person in FY24 from 14,682 megajoules per person in FY15. This growth reflects rising industrialization, improved access to electricity, and higher energy consumption across various sectors.

Sector-Wise Energy Consumption in FY24

• Industrial Sector: The largest consumer, accounting for 42% of total electricity consumption.

• Domestic Sector: Contributed 24% to total energy usage.

• Agriculture Sector: Accounted for 17% of total consumption.

• Commercial Sector: Consumed 8% of the total energy.

Coal Remains the Backbone of India’s Energy Supply

Despite the growth of renewables, coal continued to be the dominant source of energy in India, accounting for 79% of the total energy supply in FY24. The electricity sector was the largest consumer of coal, utilizing 69% of the total coal consumption.

Decline in Coal Import Dependency

India’s coal import dependency has shown a marginal decline, dropping from 28.7% in FY15 to 25.9% in FY24. This reduction reflects India’s efforts to enhance domestic coal production and reduce dependence on imports.

Increase in Energy Efficiency

India’s energy efficiency has improved significantly over the years, with energy consumption per unit of GDP declining to 0.22 megajoules per rupee in FY24 from 0.27 megajoules per rupee in FY15. This improvement is attributed to energy-saving technologies, policy interventions, and industry initiatives aimed at reducing energy intensity.

Rising Dependency on Energy Imports

While India has improved its domestic energy production, energy imports have increased to meet the growing domestic demand.

Key Trends in Energy Imports

1. Crude Oil Dependency: India’s crude oil dependency surged to 88.9% in FY24 from 83.5% in FY15, reflecting the nation’s reliance on imported crude oil to meet its energy needs.

2. Natural Gas Imports: The dependency on natural gas imports increased to 46.6% in FY24, up from 35.6% in FY15, indicating a greater reliance on imported natural gas to meet domestic demand.

3. Decline in Coal Imports: Despite the overall increase in energy imports, India reduced its coal import dependency to 25.9% in FY24, reflecting an increase in domestic coal production.

Waaree Renewable Technologies Secures ₹232.30 Crore Solar Project

Waaree Renewable Technologies Ltd has secured a ₹232.30 crore (US$ 27.12 million) solar project from a domestic entity to install a 170 MW solar power plant. The project includes Engineering, Procurement, Construction (EPC) services and long-term Operation & Maintenance.

Key Features of the Waaree Solar Project

1. Reduction of Carbon Emissions
   The project is expected to reduce CO2 emissions by 225,000 metric tonnes annually, equivalent to removing 50,000 fossil fuel-powered cars from the roads.

2. Promoting Clean Energy Adoption
   The 170 MW solar power plant will enhance India’s renewable energy capacity, contributing to the nation’s green energy transition.

3. EPC and O&M Services
   Waaree will provide EPC services and long-term O&M to ensure the efficient operation and maintenance of the solar plant.

Impact of Renewable Energy Growth on India’s Energy Landscape

1. Enhanced Energy Security

The increased share of renewables has improved energy security by reducing dependence on fossil fuels and enhancing energy diversification.

2. Reduction in Carbon Footprint

The growth of solar and wind power has contributed to a significant reduction in carbon emissions, supporting India’s climate goals and sustainability targets.

3. Strengthening Industrial Competitiveness

Improved energy efficiency and access to clean energy sources have enhanced industrial competitiveness by reducing operational costs and carbon footprints.

Future Outlook: Accelerating Renewable Energy Growth

India is expected to continue its transition towards a cleaner energy future, with a focus on:

1. Expansion of Solar and Wind Capacity

The government plans to expand renewable energy capacity to achieve the target of 500 GW of non-fossil fuel capacity by 2030, with solar and wind power playing a critical role.

2. Promoting Energy Storage and Grid Modernization

Investments in energy storage technologies and grid modernization will enhance the reliability and stability of India’s renewable energy infrastructure.

3. Increasing Private Sector Participation

Greater private sector participation and foreign direct investments (FDI) will drive the growth of renewable energy projects and contribute to India’s green energy transition.

Key Takeaways

• India’s renewable energy share in electricity generation surged from 6% in FY15 to 12.1% in FY24, reflecting a commitment to clean energy growth.

• Waaree Renewable Technologies Ltd secured a ₹232.30 crore solar project to install a 170 MW solar power plant, reducing CO2 emissions by 225,000 metric tonnes annually.

• India’s coal dependency declined marginally, while natural gas imports surged to meet growing domestic energy demands.

Conclusion

India’s energy sector transformation is marked by rising renewable energy adoption, improved energy efficiency, and declining coal import dependency. As India continues its journey towards a greener future, initiatives like the Waaree solar project and enhanced policy support for renewables will further strengthen the nation’s energy security and contribute to a sustainable energy future.

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