Surged Financial Backing Spurring the Indian RE Growth: Report

Surged Financial Backing Spurring the Indian RE Growth: Report

As the country pushes toward achieving 500 GW of non-fossil fuel energy by 2030, renewable energy now comprises 43.5% of India’s total power capacity, signaling exponential growth for the industry, a latest report from Rubix Data Sciences said. The report offers key insights into the key drivers, emerging trends, and challenges shaping the renewable energy landscape. Below are the major highlights:

The report said that India’s renewable energy landscape is experiencing a transformative shift, driven by government initiatives and a focus on sustainability. With renewable energy contributing nearly 43.5% of the country’s total installed power capacity and 20.9% of total power generation, this sector is becoming a pivotal part of India’s energy transition from fossil fuels to cleaner alternatives.

The report explores the primary forces propelling this growth, including government programs like the PM Surya Ghar Muft Bijliee Yojana and the Production Linked Incentive (PLI) Scheme, both of which are designed to promote solar energy adoption and manufacturing. In addition, the creation of solar parks across the country has added momentum to the shift toward renewable energy sources.

The report said that the renewable energy sector is also benefiting from increased financial backing. The Ministry of New and Renewable Energy (MNRE) has seen a significant budgetary boost, reflecting the government’s commitment to accelerating the sector’s expansion. Additionally, credit offtake to the renewable energy industry has surged fivefold since FY2019, demonstrating strong interest and involvement from investors and stakeholders, it said.

While the future of India’s renewable energy sector is promising, the report also highlights significant challenges that need to be tackled. These include land acquisition issues, dependency on Chinese imports for solar components, and the need to ensure a reliable and sustainable supply chain for long-term growth, the report said.