India has set ambitious targets for renewable energy (RE). The Government of India set an ambitious target in 2015 of installing 175GW of renewable energy capacity by 2022. Since then, as part of the Paris Agreement, India has set a target to install 500GW of RE capacity by 2030. RE has a key role to play in the energy transition away from fossil fuel sources and in reducing carbon dioxide emissions. In addition to being key to energy transition, RE also has the capability to improve energy access to remote regions and provide employment opportunities. India has installed nearly 130GW of solar and wind generation at present.
The National Institute of Solar Energy (NISE)1 has assessed the country’s solar potential of about 748GW, assuming 3% of the wasteland area to be covered by solar photovoltaic (PV) modules. Solar energy has taken a central place in India’s National Action Plan on Climate Change, with the National Solar Mission (NSM) as one of the key Missions. In 2010, India launched the Jawaharlal Nehru National Solar Mission (JNNSM), which aims to dramatically expand solar energy technology innovation and distribution to enhance energy supply, advance energy security, provide clean energy to its vast rural population and sustain India’s economy in the long run. The target capacity for the NSM has been revised many times and the most recent target of 100GW of solar PV by 2022 has not yet been achieved.
Solar power, however, has contributed a major part of the RE capacity for India, and as of June 2024 stands at 85GW of installed capacity, up from June 2023 when 70GW of solar projects had been approved or were under construction. The 2023 capacity of 70GW included 57.22GW from ground-mounted solar projects, 10.37GW from rooftop solar projects and 2.51GW from off-grid solar projects. India has further announced even more large-scale solar power in the next few years. In the context of the huge increase in solar generation capacity, there is a need to investigate the investments in solar power in India and reflect on the impacts of these increased solar installations. The aim of this case study is to provide a brief overview of the solar power sector in India, with a focus on comparing and contrasting the large-scale solar capacity with the smaller scale and domestic rooftop solar. The case study will highlight the environmental and social impacts of solar PV and provide recommendations on how these impacts could be mitigated and governed to better achieve a just energy transition. Additionally, the case study provides some recommendations for financial institutions investing in India on the path forward for solar in India to enable a just energy transition and the decarbonisation of the energy system.
Read and download the full study here: Banking-on-Renewables_case-study-India
This case study was originally published in Recourse and can be read here.
Centre for Financial Accountability is now on Telegram and WhatsApp. Click here to join our Telegram channel and click here to join our WhatsApp channel and stay tuned to the latest updates and insights on the economy and finance.