India's ambitious renewable energy journey has reached several critical inflection points, according to Sumant Sinha, Founder, Chairman, and CEO of ReNew. Speaking at the Business Today Infrastructure Summit on July 31, Sinha emphasized that the nation must now focus on energy storage, domestic manufacturing capabilities, and the adoption of green fuels to propel its clean energy transition beyond mere capacity additions.
Navigating the Next Phase of Renewable Growth
Sinha acknowledged India's significant progress in scaling renewable capacity, noting the country is on track to achieve its target of 500 GW of non-fossil fuel electricity by 2030. With over 300 GW already installed, predominantly from wind and solar, India has surpassed the US in adding new renewable capacity, trailing only China.
However, this rapid growth presents new challenges that demand an integrated and strategic approach:
1. Integrating Renewables and Grid Management
The increasing share of renewables, now accounting for approximately 20% of India's power supply, creates periods of surplus generation during the day and shortages during peak evening demand. Sinha stressed the urgent need for more storage solutions alongside every renewable project. This includes pumped hydro, battery-based storage, and other advanced technologies to balance the grid and ensure a reliable power supply.
2. Boosting Domestic Manufacturing
Historically, India has relied heavily on imported equipment to build its renewable capacity. Sinha highlighted the necessity of moving the supply chain further upstream to reduce this dependence, bolstering energy security, and fostering a robust domestic manufacturing ecosystem for renewable energy components.
3. Expanding Renewables Beyond Electricity
Electricity currently constitutes only about 20% of India's total energy consumption, leaving the vast majority of sectors untouched by renewables. Sinha advocated for extending clean energy's reach through green fuels such as green ammonia and green hydrogen. Additionally, he called for accelerated electrification across the transportation and industrial sectors, enabling renewable electricity to power vehicles and industrial processes.
Economic Drivers and Policy Imperatives
The economic viability of clean energy is a major catalyst for its adoption. Sinha noted that renewable power is often cheaper than coal-based alternatives in India, even when factoring in the cost of battery storage to ensure consistent supply. This cost-effectiveness is a primary driver for the ongoing shift.
For sustained progress, Sinha called for a broader, integrated policy approach that transcends individual capacity targets. He emphasized the need for a comprehensive green energy ecosystem and long-term policy certainty to support the substantial, long-term investments required by the industry.
India's Global Clean Energy Ambition
Despite China's significant head start in many clean energy areas, Sinha believes India should aspire to become one of the world's leading clean energy economies. He envisioned India establishing itself as the second-most advanced country in electrification, capable of exporting clean technology equipment, knowledge, and know-how globally.