India sets a record for commissioning of renewables

Addis Ababa, May 3, 2024 (FBC) – In March 2024, renewable energy capacity additions in India reached 7.1 gigawatts (GW), more than double the previous record set in March 2022 (3.5 GW).

The largest increase (by 6.2 GW) was provided by solar generators, according to Rystad Energy.

The record commissioning of renewables is largely due to the expansion of solar energy infrastructure. While the annual capacity of Indian PV manufacturing plants was 14.0 GWdc in 2021, this figure reached 48.4 GWdc by the end of 2023.

At the same time, India continues to import equipment from Chinese manufacturers, considered leaders in the global market. According to S&P Global Platts, the world’s top 10 silicon producers include 7 companies headquartered in China. The top ten largest manufacturers of silicon wafers and elements are entirely Chinese companies, and there are 9 of them in the module segment.

The decreasing cost of PV-technologies is also having an impact. According to the International Renewable Energy Agency (IRENA), the global average cost of PV-panels’ commissioning fell by more than 80% between 2010 and 2022, from $5,124 to $876 per kilowatt of capacity, respectively.

As a result, the levelised cost of electricity (LCOE), an indicator reflecting the costs of generating electricity throughout the entire life cycle of PV- panels, has also decreased. In 2010, the weighted average cost of generation from solar power plants in India was $0.376 per kilowatt-hour (kWh), and in 2022 – $0.037 (in 2022 prices), that is, ten times lower.

However, coal remains the key source of electricity for India, accounting for 74% of power generation in 2022. The total share of thermal power plants, including gas and oil-fired power ones, was 77%, and the share of low-carbon electricity (including nuclear power) was 23%, of which 5% were solar panels.

The share of low-carbon electricity will grow in the coming years, both due to plans to triple renewable energy capacity (from the current 176 GW to 500 GW by 2030) and through easier access for private and foreign investors to Indian nuclear power.