18 Jul India’s Clean Energy Paradox: 50% Capacity, But Only 30% Power Generation
This article covers “Daily Current Affairs” and the Topic India’s Clean Energy Paradox: 50% Capacity, But Only 30% Power Generation
SYLLABUS MAPPING:
GS-3-Environment- India’s Clean Energy Paradox: 50% Capacity, But Only 30% Power Generation
FOR PRELIMS
What are the problems in using more solar and wind energy in India?
FOR MAINS
Why is there a gap between renewable energy capacity and actual power generation in India?
Why in the News?
Renewable Energy in India: Growth Trajectory and Sectoral Overview
India has emerged as a global frontrunner in renewable energy deployment, thanks to sustained policy support, technological advancement, and private sector involvement.
As of March 2025, the country’s total installed renewable energy (RE) capacity stands at 220.10 GW, a sharp increase from 198.75 GW in the previous fiscal.
A record 29.52 GW of new RE capacity was added in FY 2024–25, marking a historic high.
India now ranks:
4th globally in total RE capacity,
4th in wind power, and
5th in solar energy, according to the REN21 Renewables 2024 Global Status Report
India’s Renewable Energy Progress (FY 2024–25)
| Category | Details |
|---|---|
| Solar Energy | – 23.83 GW added in FY 2024–25 (vs. 15.03 GW in FY 2023–24) |
| – Total installed capacity: 105.65 GW | |
| – Share in total RE portfolio: ~50% | |
| Wind Energy | – 4.15 GW added in FY 2024–25 (vs. 3.25 GW in FY 2023–24) |
| – Total installed capacity: 50.04 GW | |
| Bioenergy | – Total capacity: 11.58 GW |
| – Includes 0.53 GW from off-grid and waste-to-energy systems | |
| Small Hydro Power (SHP) | – Total capacity: 5.10 GW |
| – 0.44 GW currently under development | |
| Upcoming Projects | – Projects under implementation: 169.40 GW |
| – Projects tendered: 65.06 GW | |
| Emerging Models & Innovations | – Hybrid projects (solar + wind) |
| – Round-the-Clock (RTC) power supply | |
| – Peaking power models | |
| – Thermal + RE bundling |
Key Challenges to Renewable Energy Utilisation in India
| Challenge | Details |
|---|---|
| 1. Low Capacity Utilisation Factor (CUF) | – RE sources like solar and wind are variable and weather-dependent. – Solar CUF: ~20%; Wind CUF: ~25–30%. – In contrast, coal (~60%) and nuclear (~80%) offer higher reliability. – Limits RE’s ability to meet base-load or night-time power demand. |
| 2. Continued Dominance of Coal | – Coal still generates over 75% of India’s electricity. – Acts as the primary base-load provider due to RE intermittency. – High coal reliance during peak and night-time demand limits RE substitution. |
| 3. Lack of Storage & Grid Infrastructure | – Absence of adequate Battery Energy Storage Systems (BESS) restricts RE energy storage. – Inadequate transmission infrastructure leads to grid congestion and curtailment of clean energy. |
| 4. Flat Tariff Structures | – Lack of Time-of-Day (ToD) or Time-of-Use (ToU) pricing mechanisms. – Uniform tariffs fail to encourage energy use during solar-rich periods, leading to poor daytime utilisation. |
| 5. Land Acquisition & Regulatory Delays | – Difficulty in aggregating large, contiguous land parcels for utility-scale projects. – Hybrid and storage-linked projects often face delays in environmental, forest, and local approvals. |
| 6. Financing and Investment Risks | – High capital costs and long payback periods deter private investments. – Policy uncertainty and delays in power purchase agreements (PPAs) increase financial risks. |
| 7. Integration Challenges with DISCOMs | – Power distribution companies (DISCOMs) are financially stressed and reluctant to procure variable RE power. – Lack of modern forecasting tools and flexibility impedes smooth RE grid integration. |
Why Increasing Renewable Energy Utilisation is Crucial
1. Energy Security: With energy demand set to double by 2040, underutilised RE could prolong reliance on imported coal and gas, exposing India to price shocks and supply risks.
2. Meeting Climate Goals: Although India has achieved 50% non-fossil fuel capacity, actual RE usage (~28%) lags behind, undermining its emissions intensity reduction target under the Paris Agreement.
3. Air Pollution Control: Coal-fired plants are major polluters. Increasing RE use is critical to curb emissions, especially as India hosts 13 of the world’s 20 most polluted cities.
4. Economic Efficiency: Low CUFs of solar and wind mean capital investments underperform, impacting developer returns, DISCOM finances, and consumer tariffs.
5. Decarbonising Industry & Transport: Higher RE utilisation supports green hydrogen and clean mobility, helping decarbonise hard-to-abate sectors like steel, fertilisers, and logistics.
6. Water Conservation: Unlike thermal power, RE uses minimal water, easing pressure in drought-prone regions and conserving water for agriculture.
7. Job Creation & Rural Empowerment: RE projects generate local employment and income, especially under schemes like PM-KUSUM that integrate clean energy with farming.
8. Grid Modernisation & Resilience: Efficient RE use drives investments in smart grids and storage, reducing losses and enhancing energy reliability.
Government Measures to Boost RE Utilisation
1. Green Energy Corridor (GEC): Expands transmission capacity to evacuate RE from remote regions to demand centres, reducing curtailment.
2. PM-KUSUM Scheme: Promotes solar pumps and decentralised power for farmers, reducing diesel use and boosting rural energy access.
3. National Green Hydrogen Mission: Aims to use RE for hydrogen production, supporting industrial decarbonisation and energy export potential.
4. PLI Schemes for Solar & Storage: Incentivises domestic manufacturing of solar modules and batteries, cutting import dependence.
5. Renewable Hybrid Policy: Encourages co-located wind-solar systems to improve energy reliability and raise CUF.
6. Time-of-Day Tariff Reforms: Planned reforms will incentivise electricity use during RE-rich periods, improving demand alignment.
7. Battery Storage Push: Supports grid-scale storage projects to manage intermittency and stabilise RE supply.
8. Green Open Access Rules: Allows industries to directly purchase RE, creating a market-driven push for clean energy use.
Way Forward
1. Smart Grids & Demand Alignment: Invest in smart grids and real-time load management. Implement Time-of-Day/Use tariffs to shift consumption toward solar-rich hours and reduce fossil fuel reliance.
2. Battery & Pumped Storage Scale-up: Accelerate BESS and pumped hydro deployment via VGF and PLI schemes. Promote hybrid projects combining solar, wind, and hydro for round-the-clock power.
3. Decentralised RE Solutions: Expand rooftop solar, solar pumps, and mini-grids, especially in rural areas, to reduce pressure on centralised systems.
4. Electricity Market & Tariff Reforms: Introduce differential tariffs for peak/off-peak use. Strengthen green power exchanges and simplify open access for commercial users.
5. Land & Transmission Reforms: Develop a centralised digital portal for land aggregation and clearances. Ensure integrated transmission planning is aligned with RE growth.
6. Policy & Investment Stability: Ensure long-term, transparent PPAs to attract and retain private investment and reduce project risk.
Conclusion
India has made commendable strides in renewable energy expansion, surpassing global expectations and meeting key NDC targets ahead of schedule. However, installed capacity is not enough—true success lies in converting this into reliable, round-the-clock clean energy generation. By focusing on smart grids, storage infrastructure, market reforms, and decentralised energy models, India can transform its green energy promise into performance. As the country navigates the path to 2030 and beyond, closing the utilisation gap will be crucial for a sustainable, secure, and inclusive energy future.
Prelims Questions
Q. Concerning renewable energy development in India, consider the following statements:
1. India has already achieved its target of 50% of total installed electricity capacity from non-fossil fuel sources ahead of the 2030 deadline.
2. Solar energy accounts for more than half of India’s total renewable energy capacity.
3. Time-of-Day (ToD) tariff is currently enforced across all Indian states for renewable energy consumption.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
Answer: A
Mains Questions
Q. Despite achieving 50% of its total installed electricity capacity from non-fossil fuel sources, the actual share of renewable energy in India’s electricity generation remains below 30%. Discuss the reasons for this mismatch and suggest measures to improve clean energy utilisation in the country.
(250 words, 15 marks)
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