Context:

India’s renewable energy sector has witnessed remarkable growth, achieving its highest-ever capacity addition of 25 gigawatts (GW) in the last financial year. This marks a 35% increase from the 18.57 GW added in 2023-24. 

·        According to New and Renewable Energy Minister Pralhad Joshi, solar energy played a pivotal role in this expansion, rising from 15 GW to nearly 21 GW—a 38% jump. Additionally, India's solar PV cell manufacturing capacity has tripled to 9 GW, reflecting the country’s commitment to strengthening its clean energy infrastructure.

Understanding Renewable Energy

Renewable energy refers to energy derived from naturally replenishing sources that are sustainable over time. Unlike fossil fuels, which are finite and contribute to environmental pollution, renewable energy sources are continuously restored by natural processes.

Challenges in the Renewable Energy Sector

1.    High Costs: The cost of materials, infrastructure, and land acquisition makes RE generation more expensive than fossil fuels.

2.    Land Acquisition Issues: Finding suitable land, converting it for RE use, and obtaining multiple clearances can be time-consuming.

3.    Struggling DISCOMs: Many power distribution companies (DISCOMs) are tied to Power Purchase Agreements (PPAs) for thermal power, limiting their ability to procure renewable energy and meet Renewable Purchase Obligations (RPOs).

4.    Storage and Grid Management: Intermittency in RE production due to weather fluctuations poses challenges for grid balancing and energy storage.

5.    Environmental Impact: Wind turbines can endanger birds and bats, while hydrogen production requires significant water resources.

Key Government Initiatives

• 100% FDI is permitted under the automatic route to attract investment in the sector.
• PM Surya Ghar: Muft Bijli Yojana aims to install rooftop solar systems in one crore households with an investment of ₹75,021 crore, running until FY27.
• Green Energy Corridor (GEC) Projects focus on strengthening renewable power evacuation and modernizing the grid.
• Solar Parks Scheme provides a plug-and-play model for solar developers, offering necessary infrastructure and statutory clearances.
• National Green Hydrogen Mission (2023) targets the production of 5 million metric tonnes (MMT) of Green Hydrogen annually by 2030.

Conclusion

India’s renewable energy sector is expanding rapidly, driven by strong policy support and technological advancements. However, challenges like high costs, land constraints, and grid integration need to be addressed for sustained progress. With continued investment and innovation, India is well-positioned to become a global leader in clean energy transformation, paving the way for a sustainable future.