India’s clean energy industry has grown considerably in the last decade. On the onset of the new government in India, there has been an increased emphasis on renewable energy generation and waste-water management. India is on the way to become an important player in the generation of wind and solar energy, as the Government of India has identified the renewable energy sector as one of the main sectors to be developed under its ‘Make in India’ programme.
Although India’s energy mix is still dominated by fossil fuels, the share of renewable energy has been increasing. The renewable energy installed capacity, as of May 2015, which includes solar, wind, biomass and small hydro projects stands at about 34.5 GW. This takes renewable energy’s share in the country’s total installed capacity to 13%. While, the present share of renewable energy in India’s electricity mix is 6%.
As of May 2015, India had a total wind power installed capacity of 22 GW, making it the fifth largest wind power generator in the world. The new government has set a target to draw 40% of India’s total electricity consumption in 2030 from renewable energy. For the same, it has set an ambitious goal to achieve 175 GW of renewable energy by 2022. This target is up to six times the current installed renewable energy capacity.
The cost of renewable energy technologies has also reduced over the years, creating many opportunities especially in the rural sector. This combined with the Government of India’s ambitious policies to promote the development of renewable energy infrastructure is set to take the renewable energy sector to greater heights. Additionally, Foreign Direct Investments (FDI) of up to 100% is permitted under the automatic route for renewable energy generation and distribution projects.