To achieve this target, India will have to add 40,130.39 MW of renewable energy installed capacity. To achieve a target of 72,000 MW of installed capacity for renewable energy India will have to invest around US$ 46.22 billion. Almost similar investment will be made in upgrading the transmission and distribution (T&D) infrastructure and old renewable plants which will reach their end of life. This report estimates that India will have to invest US$ 83.35 billion in the renewable energy market till 2022.
India has the world’s fifth-largest electricity generation capacity which currently stands at 243 GW. Renewable energy including large hydro constitutes for only 28.8% of overall installed capacity in India. The total renewable energy potential from various sources in India is 2,49,188 MW.
Up until 31st March 2014, India has been able to achieve only 12.95% of its renewable energy potential. The untapped market potential for overall renewable energy in India is 216918.39 MW which shows huge growth potential for renewable energy in India.
The power sector in India is highly diverse with varied commercial sources for power generation like coal, natural gas, hydro, oil and nuclear as well as unconventional sources of energy like solar, wind, bio-gas and agriculture. The demand for power has been growing at a rapid rate and overtaken the supply, leading to power shortages in spite of manifold growth in power generation over the years.