Despite India’s impressive solar and wind power capacity growth between 2008 and 2022, fossil fuel lobbying and scepticism about renewable energy’s reliability persist

Renewable projects in India, a vital component of the country’s climate objectives, have encountered delays and uncertainties in 2023. An Institute for Energy Economics and Financial Analysis report reveals that India fell short of its annual clean energy installation target, installing only 13.7 gigawatts compared to the goal of 40 gigawatts. It attributes the disruptions to policy changes, political factors, and supply chain issues impacting solar projects.

Solar module prices globally have significantly decreased, but India has faced conflicting import tax policies, causing hesitation among solar project developers. Changing policies within a short timeframe created uncertainty, resulting in delays ranging from months to years for various projects across states. Incentives for domestic manufacturing conflicted with the goal of rapid renewable energy installation, causing a mismatch between supply and demand.

Despite India’s impressive solar and wind power capacity growth between 2008 and 2022, fossil fuel lobbying and scepticism about renewable energy’s reliability persist. India, as the third-largest greenhouse gas emitter, continues to add new coal capacity annually due to doubts about the reliability of renewable energy sources.

Analysts believe the issues causing the setback are being resolved, anticipating a potential rebound in clean energy installation in the coming years. Increased solar module imports at the end of the previous year indicate progress, with expectations of a record year in 2024. However, analysts caution against such volatility, emphasising the importance of consistent growth to meet ambitious government targets.

New tenders for renewable energy projects issued in 2023 offer a positive outlook, suggesting potential growth in clean power. Nevertheless, analysts stress the need for more ambitious clean energy targets aligned with India’s rising demand, emphasising the country’s untapped potential to become a pure energy powerhouse.

While India aims to achieve 50 percent of its electricity from renewable sources by the end of the decade, the current setbacks underscore the importance of cohesive policies and targets to fully unleash the potential of the country’s renewable energy sector.