Businesses are confident of growth in India's renewable energy sector

In a new report, renewable energy consultancy Bridge to India has revelaed the anticipated progress for India’s renewable energy sector over the next half a decade. Rapid development in solar energy is expected to drive the overall energy generation up to 80 gigawatts (GW).

Rapid growth in India has been accompanied by an increased awareness of environmental considerations. In 2014, the Government of India announced that it would substantially ramp up its renewable energy generation capabilities in the country, driven by clearly defined goals for coming years.

Alongside the aim of developing 10,000 megawatts (MW) in additional capacity for the wind sector, the government at the time announced grand plans for the solar energy sector. Where the original target for installed capacity in solar energy was 20 GW by 2022, the government increased it to 100GW.

The plans have drawn considerable investment from both domestic and international firms, although an assessment from Bridge to India last year revealed that the sector was likely to fall short of its targets for 2022. Specifically, the firm reported that the installed capacity of solar energy would reach only 70% of its target level.

Now, the firm has released findings from its latest study, which demonstrate that India’s overall capacity in the renewable energy sector is likely to increase by approximately 80GW over the next half a decade. 47 GW of this capacity is expected to come from installations in ‘utility scale solar’ energy.

Of the remaining reserves, 21 GW is likely to come from developments in wind energy, while rooftop solar installments will account for 8 GW. 3 GW, meanwhile, is likely to be generated through ‘floating solar’ projects. The figures appear have inspired further confidence in investors.

Bridge to India conducted a survey amongst domestic and international executives to gauge the confidence levels in India’s renewable energy growth. The survey revealed that nearly 75% of the executives have confidence that this growth story will continue.

Commenting on the report, Managing Director of Bridge to India Vinay Rustagi said, “Overall, the survey paints an optimistic picture for renewable energy sector growth. If effective measures for DISCOM reform and network connectivity are put in place, we can expect much higher capacity additions in coming years. We also believe that the sector enjoys broad cross political support and there is unlikely to be retreat irrespective of who forms the government.”