(Photo : By Thomas Lloyd Group - Own work, CC BY-SA 4.0,)

India's renewable energy sector is all set for a Landmark expansion with new strategies, policies and investments, as the country move towards achieving its renewable energy targets by 2030. According to an industry report released by Rubix Data Science, the country is taking a departure from the historical trends that have primarily focussed on solar and wind power.

India has an ambitious target of reaching 485 GW capacity in renewable energy generation by 2030. The country has taken a slew of measures with a strategic mix of policy innovation, international collaboration, and expanded investment opportunities that involve government- public- and private participation to reach this target.

India, as a leader among developing countries in the green energy transformation, has substantially increased its budgetary allocation to the sector in recent years to support its transition from fossil fuels. In the Union Budget 2024-25, the Ministry of New and Renewable Energy saw an unprecedented allocation of INR 191.1 billion, a sharp increase from the INR 78.48 billion allocated in 2023. New programs and incentives, such as PM Surya Ghar Free electricity scheme was launched as part of the strategy to target hitherto untapped residential markets.

According to the report, India aims to add 30 GW of solar capacity, generating over 1,000 billion units of electricity annually from the residential market. Along with diversification of energy markets the country is also looking into new and alternate energy sources such as Green Hydrogen. Green Hydrogen gained traction with India government launching the National Green Hydrogen Mission in earlier this year with a budget of INR 197.4 billion.  This mission aims to achieve a production capacity of 5 million metric tonnes of green hydrogen per year and reduce fossil fuel imports by 2030. The strategic focus of the mission is on decarbonizing heavy industries and transportation.

Apart from new technologies, the government is also promoting offshore wind projects, which historically lagged the solar power and onshore wind projects. With its new offshore wind energy projects in Tamil Nadu and Gujarat the country is expecting to generate about 3.72 billion units of renewable energy in a year.

In a strategic move India has taken deliberate measures to ramp up its domestic manufacturing of solar modules and cells, thus reducing the reliance on imports from China. According to the Rubix-Industry insights report, as of FY2024, India's solar module manufacturing capacity stands at 64.5 GW, with projections to exceed 150 GW by 2026. The government also introduced production Linked Incentive scheme that incentivise domestic production and ensure quality in solar modules used in the projects.

The increased investments, policy and scheme incentives along with strategic diversification in the renewable energy sources are driving India's growth as leader renewable energy adoption

"We discussed India's leadership in reducing emissions, expanding renewable energy, and simultaneously dealing with the impact of climate change," said Harjeet Singh, Global Engagement Director of the Fossil Fuel Non-Proliferation energy sector, acknowledging country's role in combating climate change, according to an Economic Times report.

However, addressing challenges related to land use and grid stability will be crucial in sustaining this momentum. For instance, to achieve its solar energy goals, India will need between 600 and 900 square kilometres of land, and this poses challenges with limited land availability in the country. Apart from this grid integration of renewable energy and stability in the supply continues to be concern in the country. While the renewable energy sector is poised for growth, India's success will depend on mitigating these challenges effectively.