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Renewable Energy Investment Soars, Anticipated to Surge by 83% to Reach $16.5 Billion in 2024

Apart from solar and wind energy, India has increased its focus on green hydrogen in a big way to reduce dependence on fossil fuels, mainly diesel, which is required for long-haul vehicles


According to the power ministry’s most recent forecasts, India is expected to witness a notable 83 per cent increase in investments in renewable energy projects, amounting to an estimated USD 16.5 billion in 2024. This increase is in line with India’s ambitious goal of 500 GW of renewable energy by 2030, indicating the nation’s determination to cut carbon emissions and switch to greener energy sources.

Minister of Union Power and New & Renewable Energy R. K. Singh has repeatedly underlined India’s commitment to a power generation landscape free of fossil fuels. Singh claims that by 2030, up to 65 per cent of power generation capacity is anticipated to come from non-fossil fuels, notwithstanding the initial 50 per cent objective.

According to Minister Singh, the nation is expected to add a significant 25 GW of renewable energy capacity by 2024, meaning that an investment of over Rs 1,37,500 crore (almost USD 16.5 billion) will be needed. This is more than the 2023 numbers, which showed a 13.5 GW capacity boost with an investment of Rs 74,250 crore, or about USD 9 billion.

India has intentionally increased its focus on green hydrogen in addition to traditional solar and wind energy to lessen dependency on fossil fuels, especially diesel. India’s economy relies heavily on diesel, with the predominant use of diesel as the primary fuel for commercial vehicles, passenger cars, and freight services. An important step in the direction of this change was taken in January 2023 when the Union Cabinet authorised the National Green Hydrogen Mission, which will cost Rs 19,744 crore.

Important participants in the market, such as Reliance Electrolyser Manufacturing, Adani New Industries, and Bharat Heavy Electricals, have put in strong bids to win incentives under the Solar Energy Corporation of India’s call for the development of electrolyser manufacturing facilities and green hydrogen generation.

The National Green Hydrogen Mission aspires to build two green hydrogen hubs with an annual production capacity of five million metric tonnes by 2030 to position India as a global powerhouse for green hydrogen manufacturing. Prominent ports such as Deendayal – Kandla, Paradip, and V O Chidambaranar – Tuticorin have been designated to be developed into hydrogen hubs.

Industry leaders stress the need to fulfil growing demand through the installation of additional renewable energy capacity and the development of a strong ecosystem to produce green hydrogen and ammonia as India joins the global trend towards environmental sustainability.

India has the potential to become a hub for the manufacture of green hydrogen derivatives by utilising its renewable energy resources, as highlighted by Vineet Mittal, the Chairman of the Confederation of Indian Industry’s (CII’s) Taskforce on Green Hydrogen. Co-Chairman of the CII Renewable Energy Council Rahul Munjal sees continuing investment and technology breakthroughs as contributing to the sector’s promising future in 2024.

Industry experts advise issuing large-scale tenders and imposing Green Hydrogen Consumption Obligations on major industrial sectors to meet the Central Electricity Authority’s ambitious objective of 292 GW of solar, 100 GW of wind, and 18 GW of hydropower by 2030.

Senior Vice President of Investment Information and Credit Rating Agency (ICRA) Girishkumar Kadam predicts that India’s installed renewable energy capacity, excluding large hydro, will rise significantly from 132 GW as of October 2023 to approximately 170 GW by March 2025. This trajectory is consistent with the government’s March 2023 declaration of a 50 GW annual bidding trajectory, which highlights the country’s commitment to a future powered by sustainable energy.

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