Renewable Energy Leads Power Capacity Addition in FY24, Solar Dominates with 15 GW Contribution

In a significant shift towards sustainable energy, renewable sources accounted for a remarkable 71% of the new power capacity added in the fiscal year 2023-24, as per a report by the CEEW Centre for Energy Finance (CEEW-CEF).

The report highlights a substantial increase in net power generation capacity, reaching 25.9 GW, a significant jump from the 16.6 GW added in the previous fiscal year. Renewable energy spearheaded this growth, contributing 18.5 GW of new capacity, with coal/lignite following at 5.7 GW, making up 22.1% of the additions. Notably, a nuclear capacity of 1.4 GW was added for the first time since FY17.

Solar energy, encompassing both grid-scale and rooftop installations, retained its dominance as the primary source of renewable energy capacity additions. Solar contributed 15 GW, representing a remarkable 81.3% share, compared to 12.8 GW in FY23. Wind capacity additions also saw a notable increase, reaching 3.3 GW (17.6%), up from 2.3 GW in the previous fiscal year. Small hydro and bio-power accounted for 0.3% and 0.8%, respectively.

The total installed capacity in FY24 reached 442 GW, with renewables accounting for 143.6 GW (32.5%) and large hydro contributing 46.9 GW (10.6%). Coal's share dropped below 50% for the first time, now standing at 49.2% (217.6 GW).

Gagan Sidhu, Director at CEEW-CEF, emphasized India's challenge in scaling up financing for renewable energy projects, particularly to meet the annual bid capacity. He proposed unlocking the domestic bond market for corporate green bond issuances as a catalyst for achieving the necessary scale.

As of December 31, 2023, the report notes that 87.5 GW of renewable energy capacity was under construction, comprising 54.8 GW of solar, 19.2 GW of wind, and 13.2 GW of hybrid capacity, among others.

The significant surge in renewable energy capacity additions highlights India's commitment to transitioning towards cleaner and more sustainable sources of power, marking a pivotal step towards a greener future.