Report Overview

India Renewable Energy Market - Industry Trends & Forecast Report 2028

In 2021, the total installed capacity for renewable energy in India was 151.4 GW. The market is growing due to the growing concern of rising carbon emissions, the government's commitment to resolving the rising environmental concerns, and the depletion of non-renewable resources. When non-renewable resources like fossil fuels (coal, oil, and natural gas) are used for energy generation, they cause air and water pollution, damage to public health, land, wildlife, and habitat loss, and eventually lead to global warming. Therefore, the need for sustainable and eco-friendly energy is expected to drive the Indian renewable energy market during the forecast period 2022-2028.

Renewable Energy - Overview

Renewable energy is energy collected from renewable resources like sunlight, water, wind, etc. These energy sources are naturally replenished over a period of time; therefore, it is also called sustainable energy. India ranked third on the EY Renewable Energy Country Attractive Index 2021, with total renewable power capacity additions of 15.4 GW in 2021. Moreover, India is also the third largest energy-consuming country in the world. The need for non-polluting and sustainable energy sources has driven India's renewable energy market growth. As per the Ministry of New & Renewable Energy, renewable energy holds a share of 26.53% of India's total installed energy generation capacity. The Green Hydrogen Mission is expected to produce 4.1 million tonnes of annual Green Hydrogen. As of June 2022, India's solar installed capacity was 56.951 GW and is expected to grow due development of solar parks and the Production Linked Incentive (PLI) scheme in Solar PV manufacturing.

India Renewable Energy Market Forecast and Trends

Growth Drivers

Depletion of Non-Renewable Resources

Fossil fuels like coal, petroleum, natural gas, oil-sand, and oil shale, are derived from partially decomposed biomass of dead plants and organisms over hundreds of millions of years. Fossil resources are also called non-renewable resources because they are available in limited quantities on Earth, and injudicious use can lead to their depletion. These fossil fuels are burned to generate power for vehicle engines, power plants, industrial manufacturing, transportation, and household use. According to Macrotrends, India's GDP growth rate has increased from 6.45% in 2018 to 8.95% in 2021. This is attributed to spreading industrialization, improving standards of living, increased globalization, and higher per-capita consumption. This has been possible with the continuous supply and generation of power from non-renewable resources. However, due to extensive usage, the stocks of these non-renewable resources are being depleted rapidly. This will drive the growth of the Indian renewable energy market.

Increased Government Initiatives

The supportive government policies and plans formulated by the Ministry of New & Renewable Energy (MNRE) will drive the market growth during the forecast period. According to the National Investment Promotion & Facilitation Agency, India aims to reduce total projected carbon emission by 1 billion tonnes by 2030, achieve net-zero carbon emissions by 2070 and expand installed renewable energy capacity to 500 GW by 2030. India will see 45 solar parks with an aggregate capacity of 37 GW spread across cities in various states, for instance, Pavagada (2 GW), Kurnool (1 GW), and Bhadla-II (648 MW). Moreover, the world's largest renewable energy park housing a solar-wind hybrid project of 30 GW capacity is under installation in Gujarat. The renewable energy sector will see loads of new projects due to high government investments; currently, USD 196.98 billion worth of projects are underway in India. For instance, a production-linked incentive (PLI) of INR 24,000 crores was introduced under Atmanirbhar Bharat 3.0. for Solar PV manufacturing. As per the union budget of 2022, an additional allocation of INR 19500 crore for the solar PLI Scheme will also be made.

Restraints

Lack of Grid Infrastructure in Rural Areas and High Cost of Initial Installation

The electrical grid is an interconnected network for electricity delivery from producers to consumers. An electrical grid consists of four basic components: power generation, transmission lines, distribution networks, and consumer use. Power stations have a defined grid infrastructure for power transmission and supply to consumers. However, renewable energy requires more complex storage and management infrastructure. The cost of the initial installation of plants and grid infrastructure is very high. Moreover, the rural areas of India lack grid infrastructure, so the supply of renewable energy to rural areas is not possible. This will restrain the growth of the Indian renewable energy market. However, the cost of renewable energy sources is falling year on year, provided infrastructure development occurs simultaneously. According to Inspire Clean Energy, the cost of solar power is falling by 13% year on year, and the cost of wind power is falling by 9% year on year.

Impact of COVID-19 on India Renewable Energy Market

The Indian renewable energy market was negatively impacted during the Covid-19 pandemic. The sudden rise in infections in 2020 led to lockdown restrictions, and workers started migrating to their native places. Due to the wide-scale suspension of economic activity, the demand for power fell, disrupting the entire supply chain and value chain. Although the MNRE directed the DISCOMS to continue scheduling power from renewable energy sources, the consumption of renewable energy dropped as compared to the previous year. The small investors saw a risk to their investments in small and medium-sized renewable energy enterprises. The rooftop solar industry was the worst hit. Approximately 2.5 GW of wind and 3 GW of solar projects were delayed (Deshwal et al, 2021).

However, the India Renewable Energy Market will see substantial growth during the forecast period.

India Renewable Energy Market - By Type

Based on type, the Indian renewable energy market is segmented into wind, solar, hydro, bioenergy, and others. Amidst the segmentation, the hydro segment accounted for the largest market share in 2021 due to high technological advancements and better maintenance of dams. On the other hand, the solar segment is expected to grow with the highest CAGR during the forecast period 2022-2028. This is attributed to declining costs of solar modules, increased government initiatives, and its versatility for various applications, such as electricity generation and water heating.

India Renewable Energy Market - By End Use

Based on end use, the Indian renewable energy market is segmented into residential, commercial, and industrial. Amidst the segmentation, the industrial segment accounted for the largest market share in 2021 due to the low cost of operations. The same segment is expected to grow with the highest CAGR during the forecast period 2022-2028 as renewable energy is cheaper and lowers the operational costs of industries.

Competitive Landscape

The Indian renewable energy market is moderately fragmented with the presence of several companies in the country. The key players operating in India's renewable energy market are Tata Power Company Limited, NTPC Limited, Suzlon Energy Limited, Vestas Wind Systems AS, Siemens Gamesa Renewables Energy SA, ReNew Power Ltd., Reliance Power, Mahindra & Mahindra Ltd., and other prominent players. On 5th August 2022, NTPC Limited started the commercial operation of the 48.8 MW section of the Fatehgarh Solar PV Project in Jaisalmer. Moreover, on 6th August 2022, the 250 MW Kolayat, Bikaner (Shambu ki Burj-1) solar PV project at Bikaner also started commercial operation with full capacity. To date, solely NTPC Limited has installed a commercial capacity of 54818 MW, while a commercial capacity of 69183 MW has been installed in joint ventures and subsidiaries. This shows that key marketing strategies like joint ventures, agreements, mergers, and partnerships are essential for the growth and development of renewable energy in India.

Recent Development

• In April 2022, Tata Power, BlackRock Real Assets, and Mubadala Investment Company entered into an agreement to invest in Tata Power's renewable energy subsidiary, Tata Power Renewable Energy Limited. To contribute to the government's decarbonization ambition, it will provide distinct customer-oriented solutions for the long term. It will house all renewable energy businesses of Tata Power, including wind, hybrid generation assets, and electric vehicle charging infrastructure.

• In June 2021, Suzlon Group secured a contract from CLP India for the development of a 252 MW wind power project in Sidhpur, Gujarat. The project will start in 2022, wherein Suzlon will install 120 units of wind turbine generators with a Hybrid Lattice Tubular tower, with a rated capacity of 2.1 MW each.

Scope of the Report

By Type

• Wind

• Solar

• Hydro

• Bioenergy

• Others

By End-Use

• Residential

• Commercial

• Industrial

By Region

• North

• South

• East

• West

1. Research Framework
   1. Research Objective
   2.  Packaging Tire Type Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. India Renewable Energy Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. India Renewable Energy Market Overview
   1. Market Size & Forecast by Value & Volume, 2018-2028
      1. By Value (USD Million)
      2. By Volume (MW)
   2. Market Share & Forecast
      1. By Type
         1. Wind
         2. Solar
         3. Hydro
         4. Bioenergy
         5. Others
      2. By End-Use
         1. Residential
         2. Commercial
         3. Industrial
      3. By Region
         1. North
         2. South
         3. East
         4. West
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of COVID-19 on India Renewable Energy Market Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. Tata Power Company Limited
   2. NTPC Limited
   3. Suzlon Energy Limited
   4. Vestas Wind Systems AS
   5. Siemens Gamesa Renewables Energy SA
   6. ReNew Power Ltd.
   7. Reliance Power
   8. Mahindra & Mahindra Ltd.
   9. Other Prominent Players
9. Key Strategic Recommendations

NOTE: Financial in information in case of non-listed companies will be provided as per availability

The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1        India Renewable Energy Market Segmentation

Figure 2        India Renewable Energy Market Value Chain Analysis

Figure 3        Porter’s Five Forces Analysis

Figure 4        India Renewable Energy Market Size, By Value (USD Million), 2018-2028

Figure 5        India Renewable Energy Market Size, By Volume (MW), 2018-2028

Figure 6        India Renewable Energy Market Share, By Type, By Value, 2018-2028

Figure 7        India Renewable Energy Market Share, By Type, By Volume, 2018-2028

Figure 8        India Renewable Energy Market Share, By End-Use, By Value, 2018-2028

Figure 9        India Renewable Energy Market Share, By Region, By Value, 2018-2028

List of Tables

Table 1         India Renewable Energy Market Size, By Type, By Value, 2018-2028

Table 2         India Renewable Energy Market Size, By Type, By Volume, 2018-2028

Table 3         India Renewable Energy Market Size, By End-Use, By Value, 2018-2028

Table 4         India Renewable Energy Market Size, By Region, By Value, 2018-2028

Table 5         Tata Power Company Limited Company Overview

Table 6         Tata Power Company Limited Financial Overview

Table 7         NTPC Limited Company Overview

Table 8         NTPC Limited Financial Overview

Table 9         Suzlon Energy Limited Company Overview

Table 10        Suzlon Energy Limited Financial Overview

Table 11        Vestas Wind Systems AS Company Overview

Table 12        Vestas Wind Systems AS Financial Overview

Table 13        Siemens Gamesa Renewables Energy SA Company Overview

Table 14        Siemens Gamesa Renewables Energy SA Financial Overview

Table 15        ReNew Power Ltd Company Overview

Table 16        ReNew Power Ltd Financial Overview

Table 17        Reliance Power Company Overview

Table 18        Reliance Power Financial Overview

Table 19        Mahindra & Mahindra Ltd. Company Overview

Table 20        Mahindra & Mahindra Ltd. Financial Overview