India has a vast supply of renewable energy resources, and it has one of the largest programs in the world for deploying renewable energy products and systems. By 2020, India’s solar and wind power sectors are expected to double their capacity from the current 24 gigawatt (GW).
According to an estimate, the wind and solar sectors will need $45 billion in the next five years to double capacity. Solar power in India has come across impressive growth in a short span of time – from 35 MW as of March 2011 to a 3,002 MW as of December 2014. This positive growth in three years has come on the back of a favorable policy environment, particularly JNNSM. Over the last five years, wind sector has witnessed 17 per cent growth in installed capacities with policies being the backbone for this growth. India has guaranteed that 40 percent of its total power capacity by 2025 will be based on renewable sources.
At present renewable energy accounts for close to 15 per cent of the total power capacity in the country. India is trying to add 175,000 MW of capacity from clean energy sources by 2022, 60 percent from solar energy, 30 percent from wind and the balance from biomass and small hydro. When compared, Solar power may have got greater policy push after Prime Minister Mr. Modi came to power. The biggest threat faced by industry is access to cheap loans. However, the target path for renewable energy is enormous and could lead to a complete change over of the energy sector in the country.
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