India's renewable energy space is turning out to be an attractive domain for foreign investors. In total, this sector has drawn $6.84 billion FDI from April 2000 to June 2018.
More than $42 billion has been invested in the country's renewable energy sector since 2014, said a report by Indian Brand Equity Foundation (IBEF), after interpreting figures from the Ministry of New & Renewable Energy (MNRE) and Central Electricity Authority (CEA). Over the next four years, the renewable energy sector is projected to attract investments pegged at $80 billion.
Competition in green energy domain has heated up especially in the solar power segment with tenders in tariffs hitting record low of Rs 2.44 per unit in December 2017. The large integrated players are in a better position with higher returns compared to the smaller contractors.
The country added 11,788 Mw of renewable power in 2017-18. During April-July of this financial year, renewable energy sector witnessed a capacity addition of 1832.26 Mw. Net renewable capacity addition in this financial year is pegged at 8500 Mw.
“It is expected that India will overachieve its Paris Agreement goals. Renewable sources are expected to help meet 40 per cent of India's total power need by 2030”, the report noted.
As a part of its Paris Agreement commitments, the Centre has set an ambitious target of achieving 175 Gw of renewable energy capacity by 2022. The envisaged portfolio includes 100 Gw of solar power installs and 60 Gw wind power installs. Under MNRE's Solar Cities programme, 60 solar cities are proposed to be developed across the country.
India receives about 300 days of sunlight in a year and has a large hydropower potential which is being explored in the north-eastern states of the country. The country is ranked fourth in EY Renewable Energy Country Attractive Index 2018. The country accounts for approximately four per cent of the total global electricity generation and contributes 4.43 per cent to the global renewable generation capacity.
Installed renewable power generation capacity has increased steadily over the years, posting a compounded annual growth rate (CAGR) of 9.29 per cent over FY 08–18. India added record 11,788 MW of renewable energy capacity in 2017-18. The country ranks fourth in the world in terms of total installed wind power capacity. As of August 2018, India ranks fifth in terms of cumulative installed solar capacity.