Currently, only 6 per cent of electricity is sourced from solar. Moreover, renewables will account for 50 per cent of the world’s electricity by 2030 due to clean energy technologies such as solar, wind, EV, and heat pumps

The International Energy Agency (IEA) has predicted that 18 per cent of India’s electricity will be generated by solar sources by 2030. Currently, only 6 per cent of electricity is sourced from solar. Moreover, renewables will account for 50 per cent of the world’s electricity by 2030 due to clean energy technologies such as solar, wind, EV, and heat pumps.

The data was revealed in IEA’s new World Energy Outlook 2023.

The report also shows that solar manufacturing is currently concentrated in 5 nations, which account for 90 per cent of the global solar capacity. Out of these, China stands at the top with 80 per cent of the global market. It is followed by Viet Nam (5 per cent of the global market), India (3 per cent), Malaysia (3 per cent) and Thailand (2 per cent).

IEA highlights how India is expanding its domestic module manufacturing capacity through the recently launched PLI scheme. Moreover, projects in the pipeline under the scheme suggest that the nation’s manufacturing capacity could exceed 70 GW every year by 2027.

Data reveals that India is expected to meet its 2030 target of achieving 50 per cent non-fossil fuel-based electricity before the end of the decade.

If the new solar PV module manufacturing capacity under the PLI program comes fully online by 2026, it would progress the solar PV module manufacturing capacity in India to well over what is needed until the end of this decade not just in the Stated Policies Scenario (STEPS) but also in the Announced Pledges Scenario (APS),” projects IEA.

The Stated Policies Scenario (STEPS) and Announced Pledges Scenario (APS) are used by the IEA to map the trajectory of progress against the policies, targets, and commitments made by governments worldwide.

Additionally, module imports will continue for a few years due to the gap between the solar capacity set to come online and the panels being manufactured in India. Nevertheless, as local manufacturing accelerates, the International Energy Agency (IEA) foresees a decrease in imported PV modules. In addition, India is expected to emerge as a dependable exporter in the coming years.

IEA reveals that due to rising temperatures and increasing requirements for air conditioners, India’s electricity demand is also growing at a rapid pace. In this scenario, ‘finding and financing low-emissions of meeting the energy demand’ is crucial.