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The India renewables energy market is set to reach a significant value by 2032, growing at an 8.00% CAGR between years 2023-2032. Various key transformations on India’s renewable energy market dynamics have occurred over the past decade due to growing interest towards sustainability and transition to clean alternatives.
The country has become a major player on the world stage of renewable energy largely because of a confluence of policy efforts, new technological developments and market trends that have attracted more investors. The major driver of market dynamics is the Indian government’s focus in attaining its setting renewable energy targets. Solar energy growth has been unparalleled with India joining the ranks of one of the largest solar power producers in the world.
The declining prices of solar panels as well as creation and introduction of government incentives, tax rebates subsidies on the other hand have drawn both domestic players to invest in this sector not forgetting international actors. The country’s large solar power potential, which is manifested in abundant sunlight has awakened the development of the sector for solar.
Beyond, government push for off-grid solar energy had a vital role in the provision of electricity to those areas that are far away and can leave other regions with minimal access.
The wind energy, an important rival of India’s renewable market has also received a boost with technological developments and supportive government policies. The introduction of competitive bidding has led to the reduction of tariffs, and thus competitiveness with traditional sources.
Consequently, most wind power investments have been enormous that has greatly increased the renewable energy mix. Offshore wind energy projects are also increasingly drawing the attention of investors which opens new avenues for expansion and adds to the overall power generation potential. In addition, the market dynamics are also influenced by emerging regulatory landscape and financial mechanisms. Novel financing modules like the green bonds and infrastructure investment trusts have given capitalization for renewable energy projects.
Government moves to address issues related in land acquisition, transmission infrastructure and grid integration have helped secure investor confidence making it easier for the development of projects using renewable sources. India’s periodic vow to curtail its carbon footprint and minimize the impacts of global climate change has also paved way for commercialization of bioenergy as well other sources.
The focus on energy that is sustainable and decentralized has promoted the utilization of biomass bio gas technologies, especially in rural areas. The adopted decentralised approach fits in well with the government’s goal of availability, sufficiency, and sustainability provision. While such positive progress is made, however the challenges also continue in renewables market.
However, grid integration challenges, intermittency worries and the requirement for resilient energy storage are still key areas of attention in this sector. The continued initiatives of research and development, technological innovation along with international cooperation in addressing these challenges indicate a strong resilience witnessed some years back by the Indian renewables market.
India’s renewable energy market dynamics are multi-dimensional contest of policies, technologies and financing. Despite an adequate understanding of where the emphasis is needed, proper involvement and commitment instead became easy due to favorable government policies that provide a suitable environment for regulatory development. The continued changes in the market dynamics indicate that India’s renewable energy sector is capable of resilience and quick adjustment to meet this demand for clean, sustainable power.
India Renewables Energy Market Highlights:
India Renewables Energy Market Overview:
India Renewables Energy Market Size was valued at USD 21.1 Billion in 2022. The India Renewables Energy market industry is projected to grow to USD 46.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.77% during the forecast period (2023 - 2032). Rising awareness of environmental issues, adoption of competitive bidding processes, and increased demand for energy are the main market drivers anticipated to propel the renewable energy market in India.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
India Renewables Energy Market Trends
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Increasing government initiatives and policies is driving market growth
The market's increased government initiatives and policies are influencing the growth. With a focus on sustainability and combating climate change, the Indian government has implemented ambitious programs to boost renewable energy capacity. Initiatives such as the National Solar Mission and the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) drive solar energy adoption, particularly in the agricultural sector. Additionally, policy measures like the Renewable Purchase Obligation (RPO) mandate that a percentage of energy consumption be met through renewables, stimulating investments in wind, solar, and other clean sources. The government's commitment to achieving renewable energy capacity by 2022 underscores its dedication to fostering a green energy landscape and reducing dependence on conventional sources, marking a transformative phase in India's energy trajectory.
Furthermore, India’s ongoing technological advancements in renewable energy are bolstering growth. Solar power dominates the trend, benefitting from improved photovoltaic technology, increased efficiency, and declining costs. Wind energy is also evolving with advanced turbine designs and grid integration solutions. Like advanced batteries, energy storage technologies are gaining prominence, addressing intermittency challenges. Smart grids and digital solutions enhance the efficiency and reliability of renewable energy systems. Policy initiatives and government support further drive investment in clean energy projects. India's commitment to sustainability and the global shift toward greener alternatives positions the country as a player in the transition to renewable energy. Thus driving the India Renewables Energy market revenue.
India Renewables Energy Market Segment Insights:
Renewables Energy Type Insights
The India Renewables Energy market segmentation, based on type, includes Hydroelectric Power, Solar Energy, Wind Power, Bioenergy, and Others. The hydroelectric power segment mostly dominated the market. With abundant rivers and water resources, India has invested substantially in hydroelectric projects. This type of renewable energy contributes to the country's efforts to diversify its energy mix and reduce dependence on fossil fuels. Hydroelectric power projects play a crucial role in India's sustainable energy landscape, offering a reliable and environmentally friendly source of electricity.
Renewables Energy End-user Insights
The India Renewables Energy market segmentation, based on end-users, includes Residential, Commercial, Industrial, and Others. The residential category generated the most income. With increasing awareness of sustainable practices, residential consumers are adopting renewable energy solutions such as solar power systems. The desire for energy independence, cost savings, and environmental consciousness drives this segment's growth. Government incentives and initiatives further contribute to India's expanding residential renewables market.
Figure 1: India Renewables Energy Market, by End-users, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Renewables Energy Country Insights
India's renewable energy market has experienced significant growth, driven by ambitious government initiatives and increasing environmental awareness. Favorable policies like subsidies and tax incentives have attracted investments, fostering a competitive market. Solar energy, particularly photovoltaic installations, has seen remarkable expansion, while wind power projects continue to contribute substantially. Integrating advanced technologies and storage solutions enhances the reliability and efficiency of renewable energy sources. Challenges include grid integration issues and the need for infrastructure development. Despite hurdles, India's commitment to sustainability and reducing carbon emissions propels its renewables sector forward, making it a player in the global transition to cleaner energy.
Renewables Energy Key Market Players & Competitive Insights
Leading market players are investing majorly in research and development to spread their product lines, which will help the India renewables energy market grow even more. The participants also undertake various strategic activities to spread their footprint with new market developments, including product launches, contractual agreements, mergers and acquisitions, major investments, and collaboration with other organizations. The renewable energy industry must offer cost-effective items to spread and survive in a competitive and rising market climate.
The players in the renewable energy market are attempting to raise market demand by investing in research and development operations, including Tata Power Company Limited, NTPC Limited, Suzlon Energy Limited, Vestas Wind Systems AS, and Siemens Gamesa Renewable Energy SA.
Key Companies in the India renewable energy market include
- Tata Power Company Limited
- NTPC Limited
- Suzlon Energy Limited
- Vestas Wind Systems AS
- Siemens Gamesa Renewable Energy SA
Renewables Energy Industry Developments
January 2019:Suzlon Energy secured a 50.4 MW wind power project from Atria Power. The project involved supplying, installing, and commissioning Suzlon's S111-140m wind turbine generators (WTGs) in the Anantapur district of Andhra Pradesh, India.
In February 2021, Tata Power Renewable Energy Limited (TPREL), a wholly-owned subsidiary of Tata Power, inked a deal to purchase a 100% ownership in Sterling & Wilson Private Limited's (SWPL) operating solar projects for an enterprise value of around INR 1,600 crore (roughly USD 219 million). This acquisition brought approximately 253 MW of working solar capacity to Tata Power's renewable energy portfolio.
In June 2021, NTPC Limited has signed a memorandum of understanding (MoU) with the Indian Institute of Forest Management (IIFM) to carry out a project to build a green cover and eco-restoration strategy around its coal mining facilities. This collaboration is intended to promote sustainable practices and strengthen environmental conservation efforts.
India Renewables Energy Market Segmentation:
Renewables Energy Type Outlook
- Hydroelectric Power
- Solar Energy
- Wind Power
- Bioenergy
- Others
Renewables Energy End-user Outlook
- Residential
- Commercial
- Industrial
- Others
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