India is the third largest producer of electricity in the world as per the key world energy statistics published by EA in 2019. The Government of India has released its roadmap to achieve 175 GW capacity in renewable energy by 2022, which includes 100 GW of solar power and 60 GW of wind power. The Union Government of India is preparing a 'rent a roof' policy for supporting its target of generating 40 giga watts (GW) of power through solar rooftop projects by 2022.
Indian power sector is undergoing a significant change that has redefined the industry outlook. Sustained economic growth continues to drive electricity demand in India.
The Government of India’s focus on attaining ‘Power for all’ has accelerated capacity addition in the country. The competitive intensity is increasing at both the market and supply sides (fuel, logistics, finances, and manpower).
Renewable Energy generation capacity has gained pace over the past few years, posting a CAGR of 17.33 per cent between FY16–20.
Key Industry Growth Drivers
The Union Budget 2020-21 has allocated Rs 15,875 crore (US$ 2.27 billion) to the Ministry of Power and Rs 5,500 crore (US$ 786.95 million) to Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY).
Around Rs 36,729.49 crore (US$ 5.26 billion) investment was made during April-December 2019 by private companies in renewable energy.
Energy deficit reduced to 0.7 per cent in FY20 from 4.2 per cent in FY14.
In November 2019, Renew Power, Avaada, UPC, Tata unit won solar projects in 1,200 MW auction of the Solar Energy Corp of India.
India is one of the Largest Exporter of Electrical Equipment, Components & Machinery with the exports amounting to almost 4.5% of the total exports of the country. Various countries source electrical accessories and components from India. Some of the key hubs which source from India include: Africa, Middle East, West Asia and Latin America & South Americas.