{"id":48396,"date":"2025-07-17T21:01:46","date_gmt":"2025-07-17T15:31:46","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=48396"},"modified":"2025-08-05T13:27:12","modified_gmt":"2025-08-05T07:57:12","slug":"clean-energy-share-india-electricity-less-than-30-percent","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/17-07-2025\/clean-energy-share-india-electricity-less-than-30-percent","title":{"rendered":"Share of Clean Energy in India\u2019s Electricity less than 30% despite 50% of installed Capacity"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Environment<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India has reached 50% of its total installed electricity capacity from non-fossil fuel sources, achieving its NDC target five years early.\n<ul class=\"wp-block-list\">\n<li>However, these sources contribute less than 30% to actual power generation.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Renewable Energy Capacity<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Overall Renewable Energy Growth:&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Record capacity addition:<\/strong> 29.52 GW added in FY 2024\u201325.<\/li>\n\n\n\n<li><strong>Total installed RE capacity: <\/strong>Reached 220.10 GW as of March 2025 (up from 198.75 GW).<\/li>\n\n\n\n<li><strong>Target: <\/strong>Progressing toward 500 GW non-fossil fuel capacity by 2030 under Panchamrit goals.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Solar Energy:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Leading contributor:<\/strong> 23.83 GW added in FY 2024\u201325 (vs. 15.03 GW in previous year).<\/li>\n\n\n\n<li><strong>Total installed solar capacity: <\/strong>105.65 GW.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Wind Energy:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>New capacity addition:<\/strong> 4.15 GW in FY 2024\u201325 (up from 3.25 GW).<\/li>\n\n\n\n<li><strong>Total installed capacity: <\/strong>50.04 GW<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Bioenergy &amp; Small Hydro:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Bioenergy total capacity:<\/strong> 11.58 GW, including 0.53 GW from off-grid\/waste-to-energy.<\/li>\n\n\n\n<li><strong>Small Hydro capacity: <\/strong>5.10 GW, with 0.44 GW under implementation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Project Pipeline:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Projects under implementation: <\/strong>169.40 GW<\/li>\n\n\n\n<li><strong>Projects tendered: <\/strong>65.06 GW<\/li>\n\n\n\n<li><strong>Emerging solutions:<\/strong> 65.29 GW from hybrid, (Round-the-Clock) RTC, peaking power, and thermal+RE bundling.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>India stands <strong>4th globally in Renewable Energy Installed Capacity<\/strong>, 4th in Wind Power capacity &amp; 5th in Solar Power capacity (as per REN21 Renewables 2024 Global Status Report).\n<ul class=\"wp-block-list\">\n<li><strong>The leading states in India for renewable energy capacity <\/strong>are Rajasthan, Gujarat, Tamil Nadu, and Karnataka.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the Challenges?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Low Capacity Utilisation Factor (CUF):<\/strong> <a href=\"https:\/\/www.nextias.com\/blog\/clean-energy\/\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/blog\/clean-energy\/\">Clean energy<\/a> sources are intermittent and weather-dependent. Hence, their actual output is much lower despite high capacity.\n<ul class=\"wp-block-list\">\n<li><strong>Eg:<\/strong> Solar CUF: ~20%, Wind CUF: ~25\u201330%, Coal CUF: ~60%, Nuclear CUF: ~80%.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Base Load Dependency on Coal: <\/strong>Coal continues to supply over 75% of India&#8217;s electricity demand, especially at night when solar isn&#8217;t available.\n<ul class=\"wp-block-list\">\n<li>India\u2019s grid still depends heavily on thermal sources for round-the-clock (RTC) power.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Storage and Transmission Limitations:<\/strong> Lack of grid-scale battery storage prevents storing surplus daytime solar energy.\n<ul class=\"wp-block-list\">\n<li>Transmission planning is not in sync with the pace of RE (renewable energy) installation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Time-Insensitive Tariff Structures:<\/strong> India currently lacks time-of-day (ToD) pricing, discouraging daytime solar consumption.\n<ul class=\"wp-block-list\">\n<li>Uniform tariffs provide no incentive for consumers or discoms to shift loads to peak solar hours.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Land and Regulatory Constraints: <\/strong>Land aggregation issues for large-scale solar or hybrid projects.\n<ul class=\"wp-block-list\">\n<li>Delays in regulatory clearances, especially for hybrid renewable systems and storage infrastructure.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why is there a need to increase Capacity Utilisation Factor?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Energy Security:<\/strong> India&#8217;s energy demand is expected to double by 2040. Inefficient use of clean energy slows diversification and increases coal dependence.<\/li>\n\n\n\n<li><strong>Climate Commitments: <\/strong>Under its updated NDCs (2022), India committed to:\n<ul class=\"wp-block-list\">\n<li><strong>50%<\/strong> of total installed capacity from non-fossil sources by 2030 (already achieved) and Reduction in emissions intensity by <strong>45%<\/strong> (from 2005 levels).<\/li>\n\n\n\n<li>Yet, current clean energy usage (~28%) risks undercutting actual emission reduction.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Air Pollution and Public Health:<\/strong> Continued coal dominance contributes to air pollution, with India housing 13 of the world\u2019s 20 most polluted cities.&nbsp;<\/li>\n\n\n\n<li><strong>Economic Impact:<\/strong> Inefficient RE usage leads to underutilisation of investments in solar\/wind, poor returns for developers, and higher electricity costs for discoms.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives to Improve Clean Energy Utilisation<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Green Energy Corridor (GEC): <\/strong>Aims to strengthen the transmission infrastructure to evacuate renewable energy efficiently from generation points to demand centres.<\/li>\n\n\n\n<li><strong>PM-KUSUM Scheme: <\/strong>Promotes installation of solar pumps and grid-connected solar power plants in rural areas to reduce diesel usage and support farmers.<\/li>\n\n\n\n<li><strong>National Green Hydrogen Mission:<\/strong> Seeks to promote the production and use of green hydrogen to reduce reliance on fossil fuels in sectors like refining, steel, and fertilisers.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.nextias.com\/blog\/production-linked-incentive-pli\/\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/blog\/production-linked-incentive-pli\/\">Production Linked Incentive (PLI) Scheme<\/a>: <\/strong>Provides financial incentives for domestic manufacturing of high-efficiency solar photovoltaic (PV) modules and advanced battery storage systems.<\/li>\n\n\n\n<li><strong>Renewable Energy Hybrid Policy:<\/strong> Encourages setting up of projects that combine solar and wind energy in the same location to increase capacity utilisation and reliability.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Grid Modernisation and Smart Management:<\/strong> Invest in smart grids with real-time demand-supply balancing.\n<ul class=\"wp-block-list\">\n<li>Enable time-of-day pricing, especially to promote daytime solar usage.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Battery and Storage Infrastructure:<\/strong> Accelerate deployment of Battery Energy Storage Systems (BESS) through VGF (Viability Gap Funding) or PLI.\n<ul class=\"wp-block-list\">\n<li>Hybrid Projects (solar-wind-hydro with BESS) should be fast-tracked.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Decentralised Renewable Energy: <\/strong>Promote rooftop solar, solar pumps, and mini-grids to relieve base-load pressure.<\/li>\n\n\n\n<li><strong>Revamp Tariff and Market Design:<\/strong> Introduce differential tariffs for peak vs off-peak periods.\n<ul class=\"wp-block-list\">\n<li>Set up green power markets on energy exchanges with open access for industries.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Land and Transmission Reforms: <\/strong>National portal for land aggregation and clearance tracking.\n<ul class=\"wp-block-list\">\n<li>Integrated transmission planning to synchronise RE project pipelines with grid readiness.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Policy Predictability:<\/strong> Ensure long-term Power Purchase Agreements (PPAs).\n<ul class=\"wp-block-list\">\n<li>Reduce DISCOM risks through payment guarantees or tripartite mechanisms.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/sci-tech\/energy-and-environment\/share-of-clean-energy-in-indias-electricity-less-than-30-despite-50-of-installed-capacity\/article69820007.ece\" rel=\"nofollow noopener\" target=\"_blank\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">India has reached 50% of its total installed electricity capacity from non-fossil fuel sources, achieving its NDC target five years early.<\/li>\n<p><\/p>\n<h3><strong>Why is there a need to increase Capacity Utilisation Factor?<\/strong><\/h3>\n<li class=\"ms-5\">Energy Security: India&#8217;s energy demand is expected to double by 2040. Inefficient use of clean energy slows diversification and increases coal dependence.<\/li>\n<li class=\"ms-5\">Climate Commitments: Under its updated NDCs (2022), India committed to:<\/li>\n<li class=\"ms-5\">50% of total installed capacity from non-fossil sources by 2030 (already achieved) and Reduction in emissions intensity by 45% (from 2005 levels).<\/li>\n<li class=\"ms-5\">Yet, current clean energy usage (~28%) risks undercutting actual emission reduction.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/17-07-2025\/clean-energy-share-india-electricity-less-than-30-percent\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-48396","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/48396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=48396"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/48396\/revisions"}],"predecessor-version":[{"id":50185,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/48396\/revisions\/50185"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=48396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=48396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=48396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}