India & Renewable Energy in 2022

Tania Tahseen

Tania Tahseen

Solar Performance Specialist

India & Renewable Energy in 2022

Looking back at 2021, it has been a roller coaster ride for everyone in many ways. The second wave of Covid had been very tough for us. We have seen our near ones suffering and gasping for oxygen.The 21 day lockdown went on for months. We never thought that 2021 would change our life upside down. It took us a global pandemic to realize the blessings of good health, family and healthy environment. Amidst all these unexpected events, it has been a great year for the Solar industry. India added about 11.1 GW of solar capacity from January 2021 till November2021.

According to MNRE(Ministry of New and Renewable Energy), installations of solar plants in India increased by 249% compared to the installations done in 2020.

India’s Renewable Energy installation capacity reached ~104 GW. Solar energy contributed approximately 47% share in the total Renewable Energy segment making it the largest contributor.

2022 looks promising!! During the Climate change summit at Glasgow(COP26), India’s prime minister Mr. Narendra Modi has promised to cut its emissions to net zero by 2070 (Net zero or becoming carbon neutral, means not adding to the amount of greenhouse gasses in the atmosphere). He also announced India’s pledge to increase its non-fossil energy capacity to 500GW by 2030. And meet 50% of its overall energy requirements from renewable energy by 2030.

According to the Indian Rating Agency (ICRA), India anticipates adding 16.1GW Renewable Energy capacity in the next fiscal year(2022-23). In the opinion of analysts there will be a boost in solar installations. Renewable energy capacity addition will be led by Solar with 12.5GW, Wind projects are expected to contribute 2.2GW and 1.4GW from hybrid plants.

“The backlog of the projects awarded by the Central nodal agencies and state distribution utilities remains large with under-development solar, wind and hybrid capacities of more than ~55 GW. Basis this pipeline, ICRA expects the RE capacity addition to increase from 7.4 GW reported in FY2021 to 12.5 GW in FY2022 and further to 16.0 GW in FY2023. This is also supported by the progress shown by the Solar Energy Corporation of India (SECI) in signing of power sale agreements (PSAs) & power purchase agreements (PPAs) in the last six months. Within the RE capacity, the capacity addition would be driven by the solar segment followed by the wind and hybrid segments.”

-Mr. Girishkumar Kadam, Senior Vice President & Co-Group Head - Corporate ratings, ICRA

The Union budget 2022-23 greatly focused on energy transitions and clean energy missions through different schemes. We can clearly see in the budget, the steps that are being taken by the government to fulfill the target promised at the COP26 Summit. The Finance Minister, Nirmala Sitharaman told in her speech that an additional amount of Rs 19,500 Crore will be allocated for PLI(Production Linked Incentives). This will be used for the manufacturing of high-efficiency modules. High priority will be given to the integration of Solar PV modules manufacturing units.

This will not only strengthen the domestic solar manufacturing ecosystem but will also reduce our import dependence. This is in perfect sync with the “Make in India” vision.

A notable take away from this budget is the government's intention to launch a policy that enables setting up of Electric Vehicle charging stations at large scale.

There are plans to implement battery swapping policies.(Battery swapping or battery-as-a-service allows EV owners to replace the discharged batteries with charged ones at the swap stations)

A major takeaway from the speech of the finance minister is her plans to further the push for EV penetration in public transport and create special mobility zones for EVs.

We believe these moves will enable affordable and clean energy at a scale. The energy goals that the country has planned requires intensive capital investment. The government has a huge role to play in encouraging the homeowners, Industrialists and Investors to take part in the clean energy drive. We can do our part to attain the goal of becoming net-zero by switching to renewable energy.

Also Read: How to Calculate your Solar system requirement?

Tania Tahseen

Tania Tahseen

Solar Performance Specialist

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