By 2024, solar power is projected to account for nearly 60 per cent of India’s renewable energy capacity, significantly contributing to the national grid and reducing reliance on coal.

In a groundbreaking report released by the International Energy Agency (IEA), India has emerged as a leader in the global transition to renewable energy, showcasing impressive growth and commitment to sustainable practices. The “Renewables 2024” report highlights India’s significant strides in expanding its renewable energy capacity, positioning the nation as a critical player in the fight against climate change.

The report indicates that the world is on course to add over 5,500 gigawatts (GW) of renewable energy capacity between 2024 and 2030, bringing global renewable electricity generation to nearly half of total demand.

Dave Jones, Ember’s director of global insights said, “The renewables growth we’ve seen so far is just the start. Policymakers are embracing solar and wind like never before, but they are still two steps behind the reality on the ground.”

Tim Buckley, a leading energy analyst and director of Climate Energy Finance, added that despite a strong increase in investments in renewable energy since the December 2023 COP28 pledge to triple installed capacity by 2030, countries are not yet on track to meet this goal, with global capacity expected to grow by 2.7 times by the end of the decade.

“This reflects a 25 per cent lift in collective ambition compared to last year, driven by decreasing costs for solar and battery technologies. Increased support from developed nations is crucial for facilitating the energy transition in developing countries, helping to rapidly decarbonize in line with climate science,” Buckley said.

China alone is set to account for an astonishing 60 per cent of the global renewable capacity growth, making it a dominant player in the renewable energy landscape.

Nations like India are leading the charge with rapid renewable expansion, securing over half of the Asia Pacific region’s renewable growth from 2024 to 2030.

Renewable Fuels

According to the report, India is set to add approximately 40 gigawatts (GW) of renewable energy capacity in 2024 alone, primarily driven by solar and wind projects. This expansion aligns with the Indian government’s ambitious goal of achieving 500 GW of non-fossil fuel capacity by 2030, a target that reflects the country’s determination to reduce carbon emissions and enhance energy security.

“India is not only increasing its renewable energy capacity but is also demonstrating a sustainable approach that other nations can emulate,” said Fatih Birol, the IEA’s Executive Director. “The country’s policies and investments are paving the way for a greener future, both regionally and globally.”

The report emphasizes that India’s solar sector, bolstered by initiatives such as the Solar Park Scheme and production-linked incentives, has experienced remarkable growth. By 2024, solar power is projected to account for nearly 60 per cent of the country’s renewable energy capacity, significantly contributing to the national grid and reducing reliance on coal.

Wind energy is also making significant gains, with new projects set to enhance capacity in both onshore and offshore wind farms. The government’s focus on enhancing infrastructure and encouraging private investment has created a favorable environment for renewable energy developments.

This edition of the IEA Renewable Market Report series has dedicated a specific chapter to renewable fuels, including solid biomass (excluding for traditional uses), liquid biofuels, biogases (biogas and bio-methane), electrolytic hydrogen made from renewable electricity (renewable hydrogen) and e-fuels (fuels made from renewable hydrogen, including e-kerosene, ammonia and methanol) used in transport, industry and buildings.

Challenges Remain

Moreover, the IEA points out the importance of international collaborations in India’s renewable energy journey. Partnerships with countries like the United States, Japan, and those in the European Union are facilitating technology transfer and investments, further accelerating progress.

Fuel demand declines globally owing to a combination of electric vehicle adoption and vehicle efficiency improvements, the report says, adding that while governments continue to enforce biofuel mandates, incentives and greenhouse gas intensity standards over the forecast period, overall global road transport fuel demand is expected to peak in 2028, with earlier peaks in the United States and Europe, thereby limiting growth. “Even in fast-growing markets such as India, Indonesia and Brazil, total transport fuel demand growth slows considerably by 2030 (to 3 per cent from 10 per cent expected in 2024),” the report says.

Despite these advancements, the report cautions that challenges remain. Issues such as land acquisition, financing, and the need for grid improvements must be addressed to sustain momentum. However, the Indian government is actively working to overcome these hurdles through policy reforms and streamlined processes.

As the world faces escalating climate challenges, India’s renewable energy revolution serves as a testament to the potential of ambitious policy frameworks and public-private partnerships. The report says that with continued commitment, India is poised to not only meet its own energy needs but also contribute significantly to global sustainability efforts.

The IEA’s “Renewables 2024” report underscores India’s pivotal role in the renewable energy landscape, offering a model for other nations striving for a sustainable future.