2021: India Short Of Renewable Target But Quest For Blue Skies Gains Pace
2021 saw an accelerated push towards a cleaner future by India.
Six years after India committed to turn half its electricity clean by 2030, the nation is still short of its renewable energy target by 2022.
Yet, 2021 saw an accelerated push towards a cleaner future. Prime Minister Narendra Modi committed to net-zero by 2070, the nation continued to add green power capacity, and the country's two richest business tycoons laid out plans to invest thousands of crores in the sector.
India added nearly 10 gigawatts of renewable capacity from March through November, according to data from the Central Electricity Authority. That's over 7% growth in the eight months. The pace was 6% in FY21, 8% in FY20, 8% in FY19, 12.4% in FY18, respectively .
In October, the country rose to the third position in the world on the Ernst & Young's Renewable Energy Country Attractive Index, up from fifth in March.
Just ahead of the 2015 Paris Climate Summit, the Modi administration had set an ambitious target of 175 gigawatts of renewable capacity by 2022. The nation is 25 GW short as of now. And that too after recategorising hydro electricity from large projects as renewable in 2019. These projects contributed 46 GW as of November.
Still, according to government data, since April 2015, the country's installed renewable energy capacity has nearly doubled, led by 13-fold surge in solar power production ability.
That serves twin objectives: reduce India's reliance on fossil fuel imports. And clean up air in the nation with some of the world's most polluted cities.
Renewables (along with nuclear) contribute 38.4% of India's total installed power capacity of 392 GW as on Nov. 30. Fossil fuel, mostly coal, contributes nearly 60%.
The International Energy Agency estimates addition of 121-gigawatt renewable capacity over 2021-2026.
The government is pushing domestic manufacturing of equipment used by renewable energy producers. It has announced production-linked incentives worth Rs 4,500 crore for solar module makers.
That outlay is likely to rise. Minister for Power and Renewable Energy RK Singh said Nov. 15 that the government has given an in-principle approval for another Rs 19,000 crore worth of incentives for solar cells and modules.
At the COP26 Summit in Glasgow in November, Prime Minister Modi made five key promises:
He committed to net-zero carbon by 2070 but India has sought $1 trillion by 2030.
India will take non-fossil energy capacity to 500 GW by 2030, a more than threefold jump from the current 157 GW.
India will meet 50% of energy requirements from renewable energy by 2030.
India will reduce total projected carbon emissions by 1 billion tonnes from now till 2030
India will reduce the carbon intensity of its economy by 45%
Enter Billionaires
Mukesh Ambani and Gautam Adani plan to spend on the entire renewable chain, from making solar panels to batteries and green hydrogen.
Ambani announced investments worth Rs 60,000 crore to set up four gigafactories to manufacture and integrate all components of new energy ecosystem, including batteries, solar photovoltaic modules, fuel cells and electrolysers.
Reliance Industries, which plans to become net carbon zero, will also invest Rs 15,000 crore on the creation of value chain, he said. Ambani has already set the plan in action.
On Dec. 31, 2021, Reliance New Energy Solar Ltd., RIL's wholly owned subsidiary, signed definite agreements to acquire 100% shareholding in the U.K.-based sodium-ion technology developer Faradion Ltd. for an enterprise value of £100 million (Rs 1,003 crore)
In October, Reliance New Energy Solar Ltd. acquired Norwegian firm REC Solar Holdings AS and India's Sterling and Wilson Solar Ltd.
Reliance said it will enable 100 GW of renewable generation capacity by 2030, contributing 20% of India's target.
In November, Adani reiterated his commitment to invest $70 billion over the next decade to accelerate India's renewable energy shift. That came after Adani Green Energy Ltd. acquired SB Energy India for $3.5 billion (Rs 26,000 crore).
Others, too, have intensified their renewables shift.
Tata Power Co. committed to grow its solar and hybrid capacities to 15 GW by 2025 and achieve carbon neutrality by 2050.
NTPC Ltd. also reiterated its commitment to achieve 60 GW renewables target by 2032. NTPC Renewable Energy Ltd. is building India's largest solar park with a capacity of 4,750 MW in Gujarat.
Coal India Ltd. purchased 100 MW solar power from Gujarat Urja Vikas Nigam Ltd.
Larsen & Toubro Ltd. and ReNew Power Pvt. have partnered to develop, own, execute and operate green hydrogen projects in India, sensing a $2-billion opportunity.
JSW Energy Ltd. approved reorganisation of its renewable and thermal businesses separately to streamline its clean energy portfolio.
There was activity down the value chain, on electric vehicles and batteries.
Tata Motors Ltd. said it will raise up to $1 billion (about Rs 7,500 crore) for a new passenger electric vehicle subsidiary from TPG Rise Climate and its co-investor ADQ.
Mahindra & Mahindra Ltd. will spend Rs 12,000 crore in the next three years towards launching and upgrading a range of passenger and commercial vehicles as it seeks to regain lost market share.
Hyundai Motor India Ltd. plans to invest about Rs 4,000 crore to introduce half-a-dozen electric vehicles in the country by 2028, joining Mahindra & Mahindra Ltd. and Tata Motors Ltd. to prepare a green mobility road map.
Tata Power Co.'s subsidiary received solar and battery story projects worth Rs 945 crore from Solar Energy Corp. of India Ltd.
The rising demand for battery chemicals has created opportunities elsewhere for other companies like Gujarat Fluorochemicals Ltd.
2021 was an important milestone in India's quest for a future with clean energy.