India to Add 500 GW of Non-Fossil Fuel Capacity in Next Decade

Syllabus: GS3/Energy and Infrastructure

Context

• PM Modi announced that India aims to add 500 GW of new non-fossil fuel-based power capacity over the next 10–11 years.

India’s Progress in Renewable Energy

• India has achieved nearly 308 GW of installed non-fossil fuel capacity, accounting for approximately 55.1% of its total installed power capacity of 558.89 GW.
• As per IRENA RE Statistics 2026, globally, India stands 3rd in Solar Power installed capacity, 4th in Wind Power capacity and 3th in total Renewable Energy capacity.
• India achieved its Paris Agreement target of deriving 50% of installed electricity capacity from non-fossil fuel sources in 2025, five years ahead of the 2030 deadline.
• The country aims to achieve 500 GW of non-fossil fuel-based installed capacity by 2030.

Significance of Renewable Energy Transition

• Energy Security: Reduces dependence on imported fossil fuels and exposure to geopolitical disruptions, particularly in West Asia.
• Climate Commitments: Supports India’s Nationally Determined Contributions (NDCs) under the Paris Agreement and its long-term net-zero target of 2070.
• Investment and Employment: The renewable energy sector has attracted over $164 billion in investments in the past decade.
  • Investment opportunities worth approximately $220 billion (₹20 lakh crore) are expected by 2030.
• Technological Development: Promotes domestic manufacturing, innovation and technological capabilities in solar cells, batteries, green hydrogen and energy storage.

Constraints in Renewable Energy Generation

• Low Capacity Utilisation Factor (CUF): Clean energy sources are intermittent and weather-dependent. Hence, their actual output is much lower despite high capacity.
  • Eg: Solar CUF: ~20%, Wind CUF: ~25–30%, Coal CUF: ~60%, Nuclear CUF: ~80%.
• Base Load Dependency on Coal: Coal continues to supply over 75% of India’s electricity demand, especially at night when solar isn’t available.
  • India’s grid still depends heavily on thermal sources for round-the-clock (RTC) power.
• Storage and Transmission Limitations: Lack of grid-scale battery storage prevents storing surplus daytime solar energy.
  • Transmission planning is not in sync with the pace of RE (renewable energy) installation.
• Land Acquisition: Land availability and environmental concerns can delay renewable energy projects.

Government Initiatives to Improve Clean Energy Utilisation

• Green Energy Corridor (GEC): Aims to strengthen the transmission infrastructure to evacuate renewable energy efficiently from generation points to demand centres.
• PM-KUSUM Scheme: Promotes installation of solar pumps and grid-connected solar power plants in rural areas to reduce diesel usage and support farmers.
• National Green Hydrogen Mission: Seeks to promote the production and use of green hydrogen to reduce reliance on fossil fuels in sectors like refining, steel, and fertilisers.
• Production Linked Incentive (PLI) Scheme: Provides financial incentives for domestic manufacturing of high-efficiency solar photovoltaic (PV) modules and advanced battery storage systems.
• Renewable Energy Hybrid Policy: Encourages setting up of projects that combine solar and wind energy in the same location to increase capacity utilisation and reliability.
• National Solar Mission (NSM): It was launched in 2010, it has set ambitious targets for solar capacity installation, including grid-connected and off-grid solar power projects. 
• Renewable Purchase Obligation (RPO): Requires power distribution companies and large electricity consumers to procure a certain percentage of their power from renewable sources, encouraging the demand for renewable energy.

Way Ahead

• Battery and Storage Infrastructure: Accelerate deployment of Battery Energy Storage Systems (BESS) through VGF (Viability Gap Funding) or PLI.
  • Hybrid projects (solar-wind-hydro with BESS) should be fast-tracked.
• Decentralised Renewable Energy: Promote rooftop solar, solar pumps, and mini-grids to relieve base-load pressure.
• Expand domestic manufacturing under initiatives such as the Production Linked Incentive (PLI) scheme.
• Grid Modernisation and Smart Management: Invest in smart grids with real-time demand-supply balancing.
  • Enable time-of-day pricing, especially to promote daytime solar usage.
• Nuclear Power as a Strategic Pillar: Nuclear capacity should be scaled in a phased and financially sustainable manner to provide firm, low-carbon base-load power.

Source: IE