India ranks 3rd globally in installed renewable energy capacity

India now ranks third in the world for installed renewable energy capacity, according to the latest data from the International Renewable Energy Agency (IRENA). The country's total capacity stands at 175 gigawatts (GW) as of March 2023, placing it behind only China and the United States.

The milestone was announced by the Ministry of New and Renewable Energy. It reflects a sharp acceleration in solar and wind installations over the past five years. Solar capacity alone has grown from 12 GW in 2017 to more than 64 GW today. Wind power adds another 42 GW.

Solar leads the charge

Solar energy accounts for the largest share of India's renewable mix. Large-scale solar parks in Rajasthan, Gujarat, and Tamil Nadu have driven much of this growth. Rooftop solar installations are also rising, though at a slower pace. The government's target is to hit 500 GW of non-fossil fuel capacity by 2030.

Wind power, mostly concentrated in the southern and western states, has seen steady additions. Tamil Nadu and Gujarat remain the top wind-producing states. Offshore wind projects are still in early stages, with the first commercial-scale farm expected off the coast of Gujarat by 2025.

Hydropower and bioenergy

Hydropower, including pumped storage, contributes about 47 GW. Bioenergy, which includes biomass and waste-to-energy plants, adds roughly 10 GW. Neither has grown as fast as solar or wind, but both play a role in balancing the grid.

India's jump to third place came after it overtook Germany and the United Kingdom in total capacity. China leads with over 1,100 GW, followed by the United States at roughly 350 GW.

Policy push and challenges

The government has introduced several measures to speed up renewable deployment. These include waiving inter-state transmission charges for solar and wind power, bidding out large renewable parks, and mandating renewable purchase obligations for utilities. The Production-Linked Incentive (PLI) scheme for solar module manufacturing aims to cut dependence on imports from China.

But challenges remain. Grid infrastructure needs upgrades to handle variable solar and wind power. Land acquisition for new projects often faces delays. And state-level power distribution companies, many of them financially weak, are slow to sign new power purchase agreements.

"The pace of growth is encouraging, but we need to address bottlenecks in transmission and discom health," said a senior official at the Ministry of Power, speaking on condition of anonymity. He added that the next phase of growth will depend on easing land clearances and speeding up grid connectivity.

Global context

Globally, renewable capacity additions hit a record 295 GW in 2022, IRENA data shows. Solar and wind accounted for most of that. India contributed about 16 GW of new capacity last year, ranking fourth after China, the US, and Brazil.

For India, the challenge is not just adding capacity but also ensuring it runs at high efficiency. The average plant load factor for solar projects hovers around 20%, while for onshore wind it is roughly 22%. Storage technology, mainly battery systems, is seen as key to improving these numbers.

The government has floated tenders for 50 GW of renewable capacity with storage. Several states, including Rajasthan and Gujarat, are pushing for solar-plus-storage projects. The cost of battery storage has dropped by nearly 70% over the past five years, making such projects more viable.

India's third-place ranking is a sign of progress. But meeting the 2030 target of 500 GW will require adding roughly 50 GW every year, more than triple the current annual rate.