India has set an aspirational vision for 2030, i.e. achieving 500 GW from renewable energy sources.  Not stopping there, at COP26, India further pledged to achieve Net-Zero by 2070. 

While ambitious, these targets are necessary to reduce India’s dependence on fossil fuels and contribute to global action towards climate change. As a result of these commitments, leading economies across the globe have recognised India’s efforts as one of the fastest-growing markets for renewable energy in the world. This begs the question – how much have achieved and are we on track to accomplish the aspirational vision?

Reality Check: How have we fared till 2025?

At the beginning of this year, India has already achieved roughly 215 GW of non-fossil fuel capacity. Leading this transition is solar energy, contributing nearly 80 GW to the mix. While hydropower contributes 47 GW, we are deriving nearly 46 GW of energy from Wind. Furthermore, nuclear energy contributes nearly 22 GW to the mix, while biomass and other renewables contribute 10 GW.

While these figures show significant progress, we are still far from the targets. Adding 285 GW in less than half a decade would mean a minimum of 50 GW from renewables added each year. And that’s concerning because up until now, we have only been able to add 15-20 GW per year, thus making the need for acceleration both urgent and imminent.

Impediments to India’s renewable energy growth

While the government is providing a strong policy push towards renewable energy, the development is still mired by challenges in land acquisition and limited infrastructure. 

For one, solar and wind energy projects require vast amounts of land, which is subject to bureaucratic hurdles, and legal challenges, and at times, may invoke objections from the local communities.

Furthermore, the success of these projects also hinges on a robust transmission infrastructure, linking high-generation zones like Rajasthan, Gujarat, and the coastlines with the rest of India. Currently, this remains a bottleneck.

Another significant challenge is energy storage and grid stability, as renewables like solar and wind are intermittent and create considerable fluctuations in power supply. For effective integration, India needs 250 GWh of energy storage. However, with the soaring costs, Battery Energy Storage Systems need to be supported by favourable policies and financial incentives.

Another major impediment remains India’s dependence on imports. India currently imports 80% of solar modules and a major chunk of battery storage components from China. However, the ever-changing geopolitical landscape thus makes us more vulnerable and less self-sufficient.

Key strategies for massive acceleration

To accelerate towards the ambitious 500 GW targets, India needs  bold reforms and interventions, such as:

·  Strengthen Energy Storage – this includes scaling up with BESS and supporting innovations and the latest technologies in the mix, such as LFP & Ni-Cd batteries that offer a significantly longer lifespan and are better for the environment.  

·  Improved Transmission Networks & Smart Grid Tech – for seamless evacuation of renewable energy, we need to accelerate the Green Energy Corridor projects. Furthermore, upgrading smart grid technology, leveraging the power of AI to pre-empt and better balance the grid is essential.

·  Boosting indigenous manufacturing – in the next phase of growth, India needs to reduce its dependence on imports. The PLI scheme should be expanded to cover all major components like solar panels, inverters, and battery technologies. Furthermore, easy credit access for companies investing in solar & battery manufacturing and creating a long-term strategy for securing critical minerals like lithium, nickel, and cobalt, is going to play a critical role in promoting domestic manufacturing.

·  Speeding up execution – offering Execution-Linked Incentives for power companies would ensure that projects get completed ahead of timelines and India remains on track for its ambitious vision. Priority sector lending for clean energy projects, quicker environmental and regulatory clearances etc would help expedite and streamline project execution.

The road ahead

While India has certainly made significant strides, achieving the ambitious 500 GW target by 2030 would depend on major policy enhancements, advanced tech, and capital investments. Innovating energy storage, boosting domestic manufacturing, and grid modernizations are going to play a critical role towards this future. 

This needs to be supplemented with simplified regulations, an expedition of project approvals and time-bound implementations. The choices we make today are going to define India’s future towards sustainable growth and development. To the same end, removing bottlenecks and incentivising innovation will launch India on an accelerated path to achieving the ambitious energy vision.

Piyush Goyal is Co-Founder and CEO, Volks Energie