India Sets Ambitious 500 GW Renewable Energy Goal by 2030 with Major Investment

An investment of up to Rs 30 lakh crore is anticipated to achieve India's goal of 500 GW renewable energy capacity by 2030, Union Minister Pralhad Joshi stated in Rajya Sabha. Renewable energy remains a top priority for Prime Minister Narendra Modi's government, demonstrated by the budget allocation doubling to over Rs 20,000 crore this year.

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India has seen a notable shift in renewable energy investment dynamics. Over the past decade, around Rs 7 lakh crore has already been invested, according to the minister for new and renewable energy. He mentioned that setting up a non-fossil fuel-based capacity of 500 GW would require an investment of Rs 30 lakh crore.

Renewable Energy Capacity and Investments

The total renewable energy generated in India has surged from 193.5 billion units to 359.89 billion units over the last ten years. Solar power tariffs have dropped significantly from Rs 11 per unit in 2010-11 to Rs 2.60 per unit in 2023-24, aided by schemes like the Production Linked Incentive (PLI) encouraging domestic manufacturing.

Currently, India ranks fourth globally in installed capacity, fourth in wind capacity, and fifth in solar PV capacity. The total installed solar power capacity stands at 85.4 GW, with an additional 74.34 GW tendered and 104 GW under implementation.

Policy Reforms and Future Plans

The government has introduced several policy reforms to boost the sector. The ministry is implementing a Rs 24,000-crore PLI scheme for selected solar PV module manufacturers for five years post-commissioning of production and on the manufacturing and sale of high-efficiency solar PV modules.

Letters of awards have been issued for setting up 48,337 MW partially or fully manufacturing capacity of high-efficiency solar PV modules, with production scheduled to commence from October 2024. Additionally, 100 per cent foreign direct investment (FDI) is now permitted through the automatic route for the sector.

Challenges and Opposition Concerns

During the discussion, opposition members questioned how the government plans to achieve the target of 500 GW from renewable energy by 2030 when the current capacity is only 200 GW. Joshi responded optimistically: "We have taken it to 200 GW and will achieve 500 GW also."

Opposition members raised concerns about dependence on imports from China for the renewable energy sector. Congress member Ranjeet Ranjan remarked that "Modi Chini Bhai Bhai" implies a reliance on Chinese imports. Joshi countered by highlighting India's rise to fourth in solar and fifth in renewable energy globally.

Minister's Remarks and Opposition Walkout

The opposition walked out during Joshi's reply after he criticised the Congress party's relationship with China. He pointed out that between 2004 and 2014, when renewable energy was gaining global attention, India's total expenditure was only Rs 6,091 crore.

Joshi noted that this year's budget for his ministry exceeds Rs 21,000 crore, with a total expenditure of Rs 36,952 crore over the last decade. He also mentioned orders placed for schemes like PM Surya Ghar, PM Kusum, National Green Hydrogen Mission, viability gap funding (VGF), and PLI for solar modules.

Sectoral Developments and Future Prospects

The government is working on Pachamrit commitments aiming for a non-fossil energy capacity of 500 GW by 2030 and net-zero carbon emissions by 2070. The total installed capacity currently in the pipeline is 256.02 GW.

Including nuclear energy, India has a pipeline capacity of 427.56 GW. The GST rate was revised from five to twelve per cent based on sector demand.

In response to opposition claims about poor quality Chinese solar panels, Ramji from BSP highlighted that India lacks expertise in this area and suggested exploring wind energy further as only selected companies are currently involved.

The debate saw participation from Abdul Wahab (IUML) and Sangeeta Yadav (BJP), while Ramgopal Yadav (SP) urged the government to simplify formalities for concessions under PM Kusum Yojna.

The government's commitment to renewable energy is evident through its substantial investments and policy reforms aimed at achieving ambitious targets by 2030.