India, with its rapidly growing population and economy, faces an unprecedented energy demand. As the third-largest energy consumer globally, the country is at a critical juncture to transition from fossil fuel dependency to sustainable energy systems. Renewable and green energy sources—solar, wind, hydropower, biomass, and green hydrogen—offer a pathway to meet this demand while addressing environmental concerns, energy security, and economic growth. This research article explores India’s renewable energy landscape, focusing on current achievements, policy frameworks, technological advancements, challenges, and future prospects. It highlights why renewable energy is not just an option but a necessity for India’s sustainable future.

1. Introduction

India’s energy sector is pivotal to its ambition of becoming a global economic powerhouse. With a population exceeding 1.4 billion and an economy growing at 7% annually, energy consumption is projected to double by 2030. However, reliance on coal and oil, which account for over 50% of India’s energy mix, poses significant environmental and economic risks, including greenhouse gas emissions and import dependency. Renewable energy, characterized by its sustainability and low environmental impact, is emerging as a cornerstone of India’s energy strategy. This article examines how renewable and green energy can shape India’s future, supported by recent data and policy initiatives.

2. Current State of Renewable Energy in India

As of October 2024, India ranks third globally in renewable energy production, with 203.18 GW of installed capacity, constituting 46.3% of the total energy capacity (452.69 GW). The breakdown includes:

• Solar Energy: 85 GW, driven by a 36.5% compound annual growth rate (CAGR) over the past decade.
• Wind Energy: 47 GW, with India as a manufacturing hub for wind turbine components.
• Hydropower: 55 GW, including run-of-the-river projects.
• Biomass and Bioenergy: 10 GW, leveraging agricultural residues.
• Others (geothermal, tidal): Minimal but growing interest.

India’s renewable energy journey began with the establishment of the Ministry of New and Renewable Energy (MNRE) in the 1980s, making it the first country to dedicate a ministry to non-conventional energy. Since then, ambitious targets—175 GW by 2022 and 500 GW by 2030—have driven growth. The country has overachieved its Paris Agreement commitment, reaching 40% non-fossil fuel capacity nine years ahead of schedule.

3. Policy Framework and Government Initiatives

India’s renewable energy expansion is underpinned by robust policies and schemes:

• National Solar Mission (2010): Aims to scale solar capacity to 100 GW by 2030, with a focus on rooftop solar and utility-scale projects.
• Green Energy Corridor: Enhances grid infrastructure to integrate renewable energy, addressing variability and transmission challenges.
• PM Surya Ghar Muft Bijli Yojana: Promotes rooftop solar with subsidies, targeting 100 million households by 2027.
• National Green Hydrogen Mission (2023): Allocates $2.4 billion to establish India as a global hub for green hydrogen production, targeting 5 million tonnes annually by 2030.
• Production-Linked Incentive (PLI) Schemes: Boost domestic manufacturing of solar panels, batteries, and wind turbines, reducing import reliance.
• Green Bonds and Taxonomy: India raised $2 billion through sovereign green bonds in 2023, with a green taxonomy to guide climate finance.

These policies have attracted significant investments, with $15.36 billion in foreign direct investment (FDI) in renewables between 2000 and 2023 and a projected $16.5 billion in 2024 alone.

4. Technological Advancements

Technological innovation is accelerating India’s renewable energy adoption:

• Solar Photovoltaic (PV): Costs have dropped 90% since 2010, with tariffs as low as INR 2.5/kWh in 2023. Advances in bifacial panels and floating solar farms enhance efficiency.
• Wind Energy: Hybrid wind-solar systems and offshore wind projects (targeting 30 GW by 2030) are gaining traction.
• Energy Storage: Battery energy storage systems (BESS) and pumped storage hydropower address intermittency, with investments of $2.7 billion in advanced chemistry cells.
• Green Hydrogen: Electrolysis powered by renewable energy is being piloted, with applications in refineries, fertilizers, and transport.
• Smart Grids: Digital infrastructure improves grid reliability, enabling integration of distributed renewable sources.

5. Economic and Social Impacts

Renewable energy is a catalyst for India’s economic and social development:

• Job Creation: The sector is projected to create millions of jobs by 2030, from manufacturing to maintenance, particularly in rural areas.
• Energy Access: Off-grid solar and microgrids provide electricity to remote regions, supporting the Saubhagya scheme’s goal of universal electrification.
• Cost Savings: Renewables are now cost-competitive with coal, with solar and wind offering lower levelized costs of energy (LCOE).
• Import Reduction: Ethanol blending (10% in 2022, targeting 20% by 2025) and green hydrogen reduce oil imports, saving $4 billion annually.

6. Environmental Benefits

India’s renewable energy push aligns with its net-zero emissions target by 2070. Key benefits include:

• Carbon Reduction: Renewables could abate 400 million tonnes of CO2 by 2050, particularly through green hydrogen replacing grey hydrogen in industries.
• Air Quality: Transitioning from coal reduces particulate matter, improving public health in polluted urban areas.
• Biodiversity: Biomass projects utilize agricultural waste, reducing open burning and soil degradation.

7. Challenges

Despite progress, several hurdles remain:

• Land Acquisition: Large-scale solar and wind projects require vast land, leading to conflicts with local communities, as seen in Rajasthan’s solar parks.
• Grid Integration: Inadequate evacuation infrastructure and grid instability cause curtailment of renewable energy.
• Financing: Achieving net-zero requires $160 billion annually until 2030, three times current levels, necessitating innovative financing models.
• Supply Chain: Dependence on imported solar cells and critical minerals for batteries poses risks to self-reliance.
• Workforce Transition: Retraining coal sector workers for green jobs is essential to avoid stranded assets and unemployment.

8. Future Prospects

India’s renewable energy trajectory is promising, with several trends shaping its future:

• Solar Dominance: By 2030, solar could account for nearly half of renewable capacity, driven by cost declines and policy support.
• Green Hydrogen Economy: India aims to export green hydrogen, leveraging its low-cost renewable energy.
• Decentralized Energy: Microgrids and rooftop solar will empower communities, reducing transmission losses.
• Global Leadership: Initiatives like the International Solar Alliance (ISA) position India as a leader in the global energy transition.
• Innovation Hubs: Renewable Energy Special Economic Zones (RE-SEZs) could foster R&D and manufacturing, creating end-to-end ecosystems.

Projections indicate that India could reach 1 TW of renewable capacity by 2035, provided challenges are addressed through coherent policies, private investment, and international collaboration.

9. Recommendations

To realize its renewable energy potential, India should:

• Streamline Land Acquisition: Develop clear guidelines and community engagement models to balance development and local rights.
• Enhance Grid Infrastructure: Invest in smart grids and regional coordination to minimize curtailment and improve reliability.
• Boost Financing: Expand green bonds, public-private partnerships, and multilateral funding to bridge the investment gap.
• Strengthen Supply Chains: Incentivize domestic production of critical components and secure mineral supplies.
• Support Workforce Transition: Launch “Green Collar” initiatives to retrain workers and establish training hubs in coal-dependent regions.
• Promote R&D: Fund innovation in storage, hydrogen, and next-generation solar technologies to maintain competitiveness.

10. Conclusion

Renewable and green energy is not just the future for India—it is the foundation for its sustainable development. With a robust policy framework, technological advancements, and growing investments, India is poised to lead the global energy transition. However, overcoming challenges like land conflicts, grid limitations, and financing gaps requires coordinated efforts from government, industry, and communities. By prioritizing renewables, India can achieve energy security, economic prosperity, and environmental sustainability, setting a model for other developing nations. The path to a green future is clear; the time to act is now.