Our installed power generation capacity as on 31.10.2024 was 454.5 GW comprising 243.1 GW thermal, 8.2 GW Nuclear, 203.2 Renewables including large hydro of 46.97 GW. The installed capacity achieved has grown at a CAGR of 5.97% since 2014-15.
The gross generation from all the sources during the year 2023-24 was 1,739 BU comprising 1,326 BU (76%) from thermal, 48 BU (3%) from Nuclear, 365 BU (21%) from Renewable Energy (RE) Sources that includes 169 BU (10.4%) from Hydro. Due to united efforts of the government, the gross generation has increased from 1,033 BU during 2013-14 to this 1,739 BU in 2023- 24, which has grown at a CAGR of (approx.) 5.4% since 2013-14.
The current union government’s decision of assigning the power and renewable energy ministries to two different ministers – Manohar Lal and Pralhad Joshi respectively has definitely accelerated the process of growth of the Indian power sector.
When the decision of allotting the power sector to two different ministries was taken, as several functional areas were overlapping, there was an apprehension that the two ministries might not work with appropriate coordination. Although just nearabout a six-month-long period is too short to comment on this, a few significant decisions taken by the government within this short time seem to accelerate the effective growth of the Indian power sector. Today, I’ll present here a few of those decisions that I feel will help in boosting the growth of our power sector.
Dedicated Task Force for achieving the renewable energy target
Recently, while addressing the valedictory session of the two-day Chintan Shivir event organised by the Ministry of New and Renewable Energy (MNRE), at Bhubaneswar in Odisha, Joshi has announced that a dedicated task force with all stakeholders will be set up by MNRE in collaboration with the Ministry of Power (MoP) to achieve the goal of 500 GW by 2030.
In order to install another 288 GW of renewable energy capacity over the next six years, we need to invest around `42 lakh crores, including transmission infrastructure. In the event, in presence of 117 industry leaders and 67 representatives from states and PSUs, with participation from 12 major renewable energy-producing states, the MNRE minister stressed on the need of working together to solve the various challenges in the RE sector.
As per the minister, MNRE will organize hackathons for startups in the RE sector, with assured offtake to promote indigenization of renewable energy technologies and solutions. A new Joint Centre of Excellence for R&D will also be established in collaboration with the Ministry of Power to foster innovation and technological advancements in the RE sector. The ministry is now looking for finalization of Power Purchase Agreements (PPAs) and strict enforcement of Renewable Purchase Obligations (RPOs) to ensure the success of renewable energy projects.
Also, a 6,000 MW manufacturing capacity for production of solar modules, solar cells & ingot-wafer at Dhenkanal District, Odisha with expected investment of around ` 9,000 crore is being set up by an agency. He also said that another agency is setting up a 1,000 MW manufacturing capacity for production of solar modules & cells, at Infovalley-II, Khorda, Bhubaneswar, Odisha, with expected investment of around ` 730 crores.
Amendment to ALMM Order 2019
Just a handful days back, MNRE has announced a significant amendment to the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, 2019. It is expected that this will have a very great influence on India’s solar power sector and its clean energy transition. This amendment, set to take effect from 1st June 2026, introduces the long-awaited List-II for solar PV cells under the ALMM framework, marking a major step towards boosting domestic manufacturing and fostering self-reliance in India’s renewable energy industry.
The introduction of List-II, is a response to the country’s rapidly growing solar manufacturing capabilities. Until now, the absence of List-II was due to a limited domestic supply of solar cells. However, with substantial growth in India’s solar cell production capacity anticipated over the next year, this amendment is poised to change the dynamics of the industry. From 1st June 2026, all solar PV modules used in projects – including government-backed schemes, net-metering projects, and open access renewable energy initiatives – will be required to source their solar cells from ALMM List-II, ensuring quality and reliability in solar PV cells used in India’s energy infrastructure.
For projects that have already been bid out but whose last date of bid submission is before the issuance of this order, an exemption will apply, allowing them to proceed without the requirement to use solar PV cells from List-II, even if their commissioning date is post-1st June 2026. However, for all future bids, the requirement to source both solar PV modules and cells from the respective ALMM lists will be mandatory, marking a decisive shift towards quality assurance and sustainability in India’s solar power sector.
This policy enhancement is expected to fetch huge economic and environmental benefits. By mandating the use of solar PV cells that will be included in the ALMM List-II following a rigorous procedure to verify the quality and reliability, the government aims to foster a robust domestic solar PV supply chain, reduce the carbon footprint associated with solar module imports, and bolster India’s energy security. This move aligns with India’s broader goal of achieving 500 GW of non-fossil fuel-based power capacity by 2030 and making substantial strides in its commitment to clean energy.
PM Surya Ghar: Muft Bijli Yojana
This world’s largest domestic rooftop solar initiative; which was announced by our Finance Minister, Nirmala Sitharaman in the Interim Budget 2024-25; is transforming India’s energy landscape with a prudent vision to supply solar power to one crore households by March 2027.
By March 2025, installations under the scheme are expected to exceed 10 lakhs, with the numbers doubling to 20 lakhs by October 2025, reaching 40 lakhs by March 2026, and ultimately achieving the target of one crore by March 2027.
The scheme offers a subsidy of up to 40% to households, making renewable energy more affordable and accessible. In just nine months, 6.3 lakhs installations have been completed, resulting in an impressive monthly installation rate of 70,000, ten times higher than the pre-scheme average. With a goal to benefit one crore households, the programme is also expected to save the government ` 75,000 crores annually in electricity costs. This transformative initiative empowers millions to adopt clean energy, reinforcing India’s commitment to sustainable development and energy innovation.
- The PM Surya Ghar: Muft Bijli Yojana is expected to have far-reaching outcomes, both for individual households and the nation as a whole. The following list includes a few of them.
- Household Savings and Income Generation: Households will benefit from significant savings on their electricity bills. Additionally, they will have the opportunity to earn extra income by selling surplus power generated by their rooftop solar systems to DISCOMs. For instance, a 3-kW system can generate over 300 units per month on average, providing a reliable source of energy and potential revenue.
- Expansion of Solar Capacity: The scheme is projected to add 30 GW of solar capacity through rooftop installations in the residential sector, significantly contributing to India’s renewable energy goals.
- Environmental Benefits: Over the 25-year lifetime of these rooftop systems, it is estimated that the scheme will generate 1,000 BUs of electricity while reducing CO2 emissions by 720 million tonnes, making a substantial positive impact on the environment.
- Job Creation: The scheme is also expected to create approximately 17 lakh direct jobs across various sectors, including manufacturing, logistics, supply chain, sales, installation, Operations and Maintenance (O&M), and other services, thereby boosting employment and economic growth in the country.
Green Hydrogen initiatives
We all know that Hydrogen is the cleanest fuel of the future for the entire energy sector. Depending on the production method (extraction process followed, source of energy used and compound from which its production starts) Green Hydrogen is the most sustainable fuel. Towards the second half of 2023, the Government of India notified the Green Hydrogen Standard for India. The MNRE defined Green Hydrogen as having a well-to-gate emission (i.e., including water treatment, electrolysis, gas purification, drying and compression of hydrogen) of not more than 2 kg CO2 equivalent / kg H2.
Recently, Solar Energy Corporation of India Ltd (SECI), under MNRE, has signed an MoU with H2Global Stiftung to establish a collaborative framework to promote Green Hydrogen initiatives. This aims to enhance knowledge exchange on market-based mechanisms and foster cooperation between India and importing countries, thereby contributing to the global advancement of the green hydrogen economy.
The MoU has been signed by Sanjay Sharma, Director (Solar), SECI, and Dr. Susana Moreira, Executive Director, H2Global, on 19th November 2024 in presence of Timo Bollerhey, CEO (HintCo); Markus Exenberger, Executive Director (H2 Global Foundation); Prashant Kumar Singh, Secretary (MNRE); Abhay Bhakare, Mission Director (NGHM), Dr. Prasad Chapekar, DS (MNRE) and K. R. Jyothi Lal, ACS Kerala.
This collaboration will offer India the opportunity to work on joint tender design concepts, particularly in structuring joint tenders that aligns with India’s ambition to become export hub of Green Hydrogen and its derivatives. The cooperation may provide valuable insights into global hydrogen market dynamics, including trade logistics and stakeholder engagement, which can be instrumental in furthering India’s green hydrogen initiatives.
By P. K. Chatterjee (PK)
