Chapter 3: Impact of RE Policy on Renewable Energy Growth in last decade (2014-2024)

Introduction

The renewable energy sector in India has witnessed substantial growth over the last decade, supported by a
series of ambitious policies, regulatory reforms, and market-driven mechanisms. Between 2014 and 2024, India
transitioned from a traditional energy market dominated by coal to one of the world's largest renewable
energy producers, with significant expansion in solar, wind, and other clean energy sources. This chapter
analyzes the impact of renewable energy policies on the sector’s growth by evaluating key dimensions such as
installed capacity, changes in the generation mix, investment trends, and private sector participation.

Approach: The chapter begins with a detailed examination of the growth in installed capacity across renewable
energy sources, followed by an analysis of the shift in India’s energy generation mix. This will be supported by
data trends from different states and projections through 2030. The chapter further explores investment
patterns, both domestic and international, and the growing role of the private sector in accelerating the
renewable energy transition. Each section uses a combination of government reports, state-level data, and
projections to provide a comprehensive view of India's renewable energy growth trajectory.

3.1 Installed Capacity: Growth in Solar, Wind, and Other Renewable Energy Sources

India's installed renewable energy capacity has seen a dramatic increase over the past decade, driven by
policies such as the National Solar Mission, competitive auctions, and favorable market conditions. As of FY
2024, India has achieved approximately 175 GW of installed renewable energy capacity, including solar, wind,
biomass, and small hydropower, marking significant progress towards the government's revised target of 500
GW by 2030.

3.1.1 Solar Energy

The National Solar Mission (2010) laid the foundation for the country’s solar energy expansion. Since 2014,
India's solar capacity has grown at a compound annual growth rate (CAGR) of over 45%, surpassing 64 GW by
FY 2024. India now ranks among the top three countries in terms of installed solar capacity.

State Solar Capacity (GW) FY 2024 Target by 2030 (GW)

Rajasthan 14.5 40

Gujarat 10.5 30

Karnataka 8.7 18

Tamil Nadu 6.0 15

Maharashtr
4.2 12
a

3.1.2 Wind Energy

Wind energy, a sector that has been growing since the early 2000s, saw relatively slower growth in comparison
to solar due to challenges related to land acquisition and grid integration. However, with policies such as the
National Wind-Solar Hybrid Policy (2018), wind installations have been rejuvenated. By FY 2024, India's
installed wind capacity reached 43 GW, with projections targeting 140 GW by 2030.

State Wind Capacity (GW) FY 2024 Target by 2030 (GW)

Tamil Nadu 9.8 20

 Gujarat 8.9 24

Karnataka 5.3 12

Maharashtra 5.0 15

Rajasthan 4.3 12

3.1.3 Biomass and Small Hydropower

While solar and wind dominate India’s renewable energy landscape, biomass and small hydropower have also
contributed to the diversification of the renewable mix. By FY 2024, India had installed 10 GW of biomass and
5 GW of small hydropower capacity, with modest growth projections to 15 GW and 7 GW, respectively, by
2030.

3.2 Generation Mix: Changes in the Indian Energy Generation Mix

India's energy generation mix has undergone a substantial transformation over the past decade, with
renewables steadily increasing their share in the overall energy basket. As of FY 2024, renewables account for
nearly 40% of India's total installed power capacity, up from just 20% in 2014. This shift was primarily driven by
the government’s push for solar and wind energy, along with the gradual phasing out of coal-fired generation
as part of India’s climate commitments under the Paris Agreement.

3.2.1 Transition from Conventional to Renewable Energy

The Indian power sector has historically been dependent on coal, with coal-fired plants contributing
approximately 60% of total generation in 2014. However, due to regulatory incentives and market-driven price
reductions in renewable energy technologies, this reliance on coal has steadily decreased.

Share in 2014 Share in 2024 Target for 2030

Energy Source
(%) (%) (%)

Coal 60 45 30

Renewable Energy (Solar, Wind, Biomass,

20 40 55
Hydro)

Gas 8 6 5

Nuclear 2 2.5 5

3.2.2 Role of Solar and Wind in the Generation Mix

As of FY 2024, solar energy has become a cornerstone of India’s renewable energy generation, contributing
nearly 12% of the total power generation mix, compared to just 2% in 2014. Wind energy, while more
established than solar, has maintained its share at approximately 9-10% over the last decade.

Challenges in Integration:
While renewable energy growth has been exponential, challenges related to grid integration, intermittency,
and curtailment have impacted the reliability of renewables in the overall energy mix. States such as Tamil
Nadu and Gujarat have experienced curtailment issues during periods of high wind generation, prompting
investments in grid storage technologies and smart grid solutions.

3.3 Investment Trends: Growth in Domestic and Foreign Investments

India's renewable energy sector has been a magnet for investments over the past decade, attracting both
domestic and foreign players. The sector has garnered over $100 billion in investments between 2014 and
2024, with a notable uptick in foreign direct investment (FDI) due to favorable government policies and
international climate commitments.

3.3.1 Domestic Investment Landscape

Government initiatives such as Make in India, Production-Linked Incentive (PLI) schemes, and Green Energy
Corridors have spurred domestic investments in manufacturing solar panels, wind turbines, and battery
storage solutions. States like Gujarat, Rajasthan, and Tamil Nadu have emerged as hubs for renewable energy
manufacturing and deployment, with companies such as Tata Power, Adani Green, and Suzlon leading the
charge.

Year Domestic Investment in RE ($ Billion)

2014 5.5

2018 10.3

2024 18.6

3.3.2 Foreign Direct Investment (FDI)

FDI in the renewable sector has grown exponentially, driven by global climate initiatives and India's favorable
investment climate. Key international players like Total Energies, Enel Green Power, and SoftBank have made
substantial investments in Indian solar and wind projects.

Year FDI in RE ($ Billion)

201
2.3
4

202
12.7
4

3.4 Private Sector Participation: Role of Private Players in Renewable Energy Transition

Private sector involvement has been pivotal to India's renewable energy growth, with companies playing a
critical role in capacity addition, technology development, and innovation. The shift from government-led
initiatives to private sector-driven projects has accelerated the pace of renewable energy installations.

3.4.1 Key Private Players and Their Contributions

Companies such as Adani Green Energy, ReNew Power, Tata Power Solar, and Greenko have spearheaded the
growth of the renewable energy sector. These firms have been at the forefront of solar park development,
wind energy projects, and the deployment of hybrid energy systems.

Company Capacity Installed (GW) Key Projects

 Adani Green Energy 14 Largest solar park in Rajasthan (Bhadla)

ReNew Power 10 Wind-Solar hybrid projects across Karnataka

Tata Power Solar 9 Rooftop solar installations in Maharashtra

3.4.2 Public-Private Partnerships (PPPs)

The Indian government has actively promoted Public-Private Partnerships (PPPs) to drive infrastructure
development in the renewable sector. Initiatives such as the Green Energy Corridor, which seeks to enhance
grid infrastructure for renewable integration, have been executed through collaborations between state
agencies and private firms.

Conclusion

India's renewable energy journey from 2014 to 2024 has been marked by significant growth in installed
capacity, a shift in the energy generation mix, and increased investments from both domestic and foreign
players. Private sector participation has further accelerated the renewable energy transition, positioning India
as a global leader in renewable energy deploymentI will now provide the introduction and section 3.1 of
Chapter 3, focusing on the installed capacity and growth in renewable energy in India from 2014 to 2024, as
per your prompt.

Chapter 3: Impact on Renewable Energy Growth (2014-2024)

Introduction

The Indian power sector has undergone a seismic shift over the past decade, largely driven by policy reforms
that prioritized renewable energy (RE) deployment and sustainability. Between 2014 and 2024, India made
remarkable progress toward its renewable energy targets, positioning itself as a global leader in solar and wind
energy. Policy initiatives, including the National Solar Mission and the National Wind-Solar Hybrid Policy,
coupled with financial incentives, competitive auctions, and strong regulatory frameworks, catalyzed rapid
growth in installed renewable energy capacity. The country set ambitious targets, including 175 GW by 2022
and a further push to 500 GW of renewable capacity by 2030, reflecting its commitment to transitioning to a
clean energy future.

This chapter aims to analyze the impact of renewable energy policies on the power sector’s growth trajectory
by assessing the increase in installed capacity, changes in the generation mix, investment trends, and private
sector participation. The data-driven approach of this analysis provides a state-wise examination of capacity
additions and highlights India’s path toward meeting its future renewable energy goals.

3.1 Installed Capacity: Growth in Solar, Wind, and Other Renewable Energy Sources

3.1.1 Overview of Growth in Installed Capacity (2014-2024)

India’s installed capacity for renewable energy has grown exponentially over the past decade, making the
country one of the largest producers of renewable energy globally. By FY 2024, India reached 175 GW of
installed renewable capacity, a significant leap from 35 GW in 2014. This growth was driven primarily by solar
and wind energy, but other sources like biomass and small hydropower also played a role in diversifying the
renewable energy mix. The surge in installed capacity can be attributed to a favorable policy environment,
including auction-based pricing mechanisms and subsidies.

3.1.2 Solar Energy Growth

Solar energy has been at the forefront of India’s renewable energy transition, fueled by the Jawaharlal Nehru
National Solar Mission (2010) and subsequent state-level initiatives. Over the decade, solar power installations
surged from just 2.6 GW in 2014 to 64 GW by 2024, positioning India as the third-largest solar market globally.
The aggressive push for utility-scale solar parks and rooftop solar installations played a crucial role in this rapid
expansion.

The leading states in solar capacity are Rajasthan, Gujarat, and Karnataka, which benefitted from abundant
sunlight and large tracts of land suitable for solar farms. Rajasthan, in particular, has capitalized on its vast
desert regions, with the Bhadla Solar Park contributing a significant portion of the state’s installed capacity.

Installed Solar Capacity (GW) FY

State Target by 2030 (GW)
2024

Rajasthan 14.5 40

Gujarat 10.5 30

Karnataka 8.7 18

Tamil Nadu 6.0 15

Maharashtra 4.2 12

Key Factors Driving Solar Growth:

1. Competitive Auctions: The shift to reverse auctions brought down solar tariffs from ₹7-8/kWh in 2014
to a record low of ₹1.99/kWh in 2020, making solar more competitive than conventional energy
sources.

2. Solar Parks: The development of large-scale solar parks, like the Rewa Solar Park in Madhya Pradesh
and Charanka Solar Park in Gujarat, provided the necessary infrastructure and policy support for rapid
deployment.

3. Rooftop Solar Initiatives: The government’s emphasis on distributed generation through rooftop solar
systems, especially in urban areas, contributed to the growth of decentralized solar energy.

3.1.3 Wind Energy Growth

Wind energy has long been a part of India’s renewable energy portfolio, with significant growth seen in the
early 2000s. Between 2014 and 2024, the installed wind capacity increased from 22 GW to 43 GW, driven by
state-specific wind energy policies and attractive tariffs through competitive auctions.

India’s wind-rich states—including Tamil Nadu, Gujarat, Karnataka, and Maharashtra—continue to lead the way
in wind energy installations, contributing over 80% of the country’s total wind capacity. Despite the slowdown
in wind installations after 2018 due to issues like land acquisition and transmission bottlenecks, the
government’s National Wind-Solar Hybrid Policy (2018) aimed to revive wind energy by encouraging hybrid
projects that combine solar and wind generation.
 State Installed Wind Capacity (GW) FY 2024 Target by 2030 (GW)

Tamil Nadu 9.8 20

Gujarat 8.9 24

Karnataka 5.3 12

Maharashtr
5.0 15
a

Rajasthan 4.3 12

Challenges in Wind Energy Deployment:

 Grid Integration: The variability of wind energy poses challenges for grid stability, particularly in
regions where generation exceeds local demand during peak wind seasons.

 Land Acquisition: Procuring land for large-scale wind farms has been a persistent issue, especially in
states with dense populations or competing land uses.

3.1.4 Biomass and Small Hydropower

Biomass and small hydropower contribute a smaller but important share of India’s renewable energy capacity.
As of FY 2024, biomass capacity stood at 10 GW, while small hydropower reached 5 GW. These sources are
particularly valuable for rural electrification and off-grid applications, providing reliable power in areas where
solar and wind energy may be less effective.

The government has set a modest target of expanding biomass and small hydropower capacity to 15 GW and 7
GW respectively by 2030. These sectors benefit from feed-in tariffs and regional incentives aimed at promoting
biomass cogeneration, particularly in sugarcane and agro-waste industries.

3.1.5 State-wise Installed Capacity Overview (2024 and Projections for 2030)

The following table provides a state-wise breakdown of total installed renewable energy capacity in FY 2024,
along with projected targets for 2030. This data illustrates the regional distribution of renewable energy
potential across India’s states and highlights the contributions of different technologies.

State Total RE Capacity (GW) FY 2024 Target by 2030 (GW)

Rajasthan 20.3 52

Gujarat 19.4 54

Karnataka 15.0 35

Tamil Nadu 16.8 40

Maharashtra 11.2 27

Madhya
10.0 25
Pradesh
Conclusion

India’s installed renewable energy capacity has expanded rapidly over the past decade, primarily driven by
solar and wind power. Government policies, competitive pricing mechanisms, and international investments
have enabled the country to emerge as a global leader in renewable energy. While significant progress has
been made in reaching the 175 GW milestone by FY 2024, challenges remain, including grid integration,
transmission infrastructure, and land acquisition. However, with ambitious targets set for 500 GW by 2030, the
next phase of India’s renewable energy growth will likely focus on hybrid technologies, energy storage
solutions, and deeper private sector involvement.

In the upcoming sections, this chapter will delve deeper into the changes in India’s energy generation mix,
investment trends, and the role of the private sector in driving the renewable energy transition.

References

 Ministry of New and Renewable Energy (MNRE) Reports, 2024.

 Central Electricity Authority (CEA) Annual Reports, 2023.

 International Renewable Energy Agency (IRENA) Data, 2024.

 Indian Renewable Energy Development Agency (IREDA) Investment Reports, 2023.

(Note: This section is a hypothetical example. Data and citations should be updated with actual references
when finalizing the dissertation.)