India faces significant challenges in meeting its growing energy demands due to a large gap between energy supply and demand. Renewable energy presents an opportunity to help address this issue with advantages like sustainability, low operational costs, and environmental friendliness. Renewable energy capacity in India has grown significantly at an average rate of 19% between 2007-2014, driven by factors like energy security concerns, government support through incentives, climate change impacts, and falling technology costs. If India ramps up development of solar and wind energy, renewables could provide 70% of its electricity and 35% of total energy by 2030, enhancing energy security and representing a promising economic and environmental future for the country.

1. ANKIT PRABHASH
SENIOR RESEARCH ANALYST – ENERGY &
SUSTAINABILITY; BEROE CONSULTING
Renewables- The Knight in the Silver Armor
for Power famished India
India is a land of tremendous opportunities and the booming power industry has been a witness
to it for decades now. Humongous energy needs, varied potentials and abundant reserves lays
down a natural road map for investors and consumers alike.
E
lectricity consumption in the coun-
try has been growing at one of the
fastest proportions globally due to
its tremendous economic waves and blast-
ing population growth. Consumption re-
quirements have increased at an average
CAGR of 7.2% from 2007-08 to 2011-12.
Indian economy faces an increasing chal-
lenge as the country is struggling to bridge
the gap (6.7% on an average, annually)
between the supply and demand. Such
lingering lack of energy and unreliable
supplies threaten India’s economic growth.
The prevailing chronic energy deficit situa-
tion hampers the industrial growth, forcing
industries to look for an expensive alternate
source of power generation – Diesel. So,
what can India do to meet its future energy
demands and help eliminate wide-ranging
power outages in the future? Renewables
presents an opportunity to bucket in the
opportunity with added advantages of –
• Sustainability
• Minimal operational costs
• Environmental Friendliness | Green
advantage
Renewable energy also has the advantage
of allowing decentralized distribution of en-
ergy — particularly for meeting rural energy
needs, and thereby empowering people at
the grass roots level. For quite a long time
(over 3 decades), the utility-scale renew-
able based (Solar/Wind) electricity has been
termed as too pricey. But with the advent
of technology, costs of electricity generated
through these resources have shown a con-
sistent drop, while the costs of conventional
electricity have been soaring high.
Can Renewable Energy sustain as
the much needed solution in the
Indian context?
The Indian renewable sector has shown
a promising growth rate of around 19%
from 2007-2014, which strengthens the
belief of an investor for high returns.
High growth rate & estimated potential will help build
investor’s confidence.
Factors driving renewable energy
growth in India
Energy Security
India ranks fourth and sixth globally, as the
largest importer of oil, and of petroleum
products and LNG, respectively. Intense
competition for the procurement of fossil
fuels has been sharply driving the prices
with considerable volatility.
Government Support
Government is encouraging the use of
renewable energy resources by extending
Source – MNRE | Author’s Analysis.
INDIAN RENEWABLE INSTALLED CAPACITY (2007-2014)
Year Installed Capacity (GW)
2007 10.2
2008 12.3
2009 14.4
2010 16.8
2011 20
2012 24.5
2013 28.1
2014 35.77
CAGR 19.63%
*Installed capacities are indictaed for the respective fiscal years
Source - MNRE, Cleantechnica
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2. renewable energy
support to private players and mandating
the use of renewables. It offers incentives
like GBIs and tax holidays and other import
duty exemptions
Climate change
India is most vulnerable country to the im-
pact of climate change and government is
responding sharply to it by releasing NAP-
CC which comprises of actions aimed at
mitigating climate change.
Increasing cost competitiveness of
renewable energy technology
Prices of renewable energy technologies
especially solar and wind are plummeting
because of technological innovation, in-
creasing manufacturing scale and experi-
ence curve gains.
Favorable foreign investment policy
The government has allowed 100% FDI
in renewable energy sector and encour-
ages investors to set up renewable energy
plants under BOO basis in the country.
Vast untapped potential & Government
regulations
India possess abundant untapped poten-
tial of renewables being one of those few
countries receiving highest solar radiations,
having high wind potential and abundant
biomass resources. The government regu-
lations like setting up RPOs etc. play a very
effective role in attracting investors into
renewable energy.
Conclusion
Renewable forms of energy (especially so-
lar and wind) could enhance India’s energy
security and represent a bright spot in its
economic and environmental future. If In-
dia switched from coal, oil, natural gas and
nuclear power plants, it is possible that
70% of the electricity and 35% of its total
energy could be derived from renewable
resources by 2030.
India can ramp up its efforts to develop
and implement large utility-scale solar en-
ergy farms to meet the country’s economic
development goals, while creating energy
independence and bringing potentially
enormous environmental benefits. Both is-
sues have a direct influence on national se-
curity and the health of the Indian economy.
A future powered by renewable energy is
already here, not decades away. Compari-
sons of costs per kilowatt-hour of electric-
ity produced show that newly built solar
and wind plants are already considerably
cheaper than new nuclear plants. In com-
ing years solar and wind energy will com-
pete more and more favorably with con-
ventional energy generation and, in places
such as California and Italy, have already
reached so-called “grid parity.”
Renewable Energy (especially solar and
wind) is a game-changer for India: It has
the potential to re-energize India’s econ-
omy by creating millions of new jobs,
achieve energy independence, reduce the
trade deficit and propel India forward as a
“Green Nation.” Providing 100% renew-
able energy is not a fantasy for someday,
but a reality today. India has a golden op-
portunity to solve three huge problems
– reducing poverty, ensuring energy secu-
rity and combating climate change. But it
must act soon! India can no longer afford
to delay renewable energy deployment to
meet its future energy needs.
P&G, GE, Tata & Infosys are some of the
few pioneer players who have realized the
market potential and are vigorously trying
to tap this for the greater good.
For all others the clock is ticking! Tic-Toc!
Tic-Toc! 
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energetica india · JUL15