The government of India has set a massive target of achieving 175 GW in renewable energy capacity by 2022.
With just one year to go to meet the first target, India’s renewable industry will have all eyes on Finance Minister Nirmala Sitharaman on February 1, as she presents the Union Budget with the hope of measures that will help the country achieve the target.
India’s current renewable energy capacity –
|Solar energy||37 GW|
|Wind energy||38 GW|
|Clean energy||50 GW|
According to a report by the International Energy Agency, India is expected to be the largest contributor to the renewables upswing in 2021, with the country’s annual additions almost doubling from 2020. ‘
If the sector continues to grow at its current pace it will create 190,000 jobs by 2022-23.
“A large number of auctioned wind and solar PV projects are expected to become operational following delays due not only to Covid-19 but also to contract negotiations and land acquisition challenges,” said the report.
From the Budget 2021, the industry has pinned its hopes on regulatory changes that will boost the renewable energy sector, including a single window of approval, custom duty taxes, no restrictions around net metering and more.
The industry is expecting clarity around the duty structure on both cells and modules and the duration of the duty. This will fast-track investments in the sector.
The Indian government has proposed that there will be a withdrawal of Net Metering over 10 KW load for any consumer. This would further boost the rooftop solar installations, which currently stand at just 4.6GW.
India is continuing to focus on providing secure, affordable and sustainable energy, while achieving its ambitious renewable energy targets and reducing local air pollution.
Reference- IEA, Business Insider, Economic Times, Mercom india, JMK Research, MNRE website