Renewable Energy Vision and Manufacturing Excellence in India

Renewable Energy Vision and Manufacturing Excellence in India

India is rapidly transitioning towards renewable energy sources driven by environmental, economic, technological, and policy factors. This shift is vital for sustainable development and positioning India as a global leader in renewable energy.


Renewable Energy Capacity and Targets

India ranks 4th globally in renewable energy installed capacity (190 GW, including large hydro), 4th in wind power (42 GW), and 5th in solar power (67 GW). With the aim of reducing carbon emissions, India has set an ambitious target of 500 GW of non-fossil fuel-based energy by 2030, positioning it as one of the fastest-growing renewable energy markets globally. To meet this target, India needs to install approximately 50 GW of non-fossil fuel energy capacity annually, creating attractive investment opportunities in the solar, wind, and green hydrogen sectors for both international and domestic players.

Solar Energy - Building a Robust Domestic Solar PV Manufacturing Ecosystem

India's solar power manufacturing industry has seen significant growth. From March 2022 to March 2023:

  • Solar panel (PV module) production capacity more than doubled from 18 GW to 38 GW, with an additional 90 GW in the pipeline.
  • PV cell manufacturing capacity grew from 4.3 GW to 6.6 GW, with 68 GW in various stages of implementation.

Currently, India relies on imports for critical upstream components like polysilicon and ingots/wafers. By 2026, the government aims to establish domestic production with projected capacities of 38 GW for polysilicon and 56 GW for ingots/wafers. The industry is supported by the government’s Production-Linked Incentive (PLI) schemes, which awarded 25.8 GW of capacity across two phases:

  • 1st phase: 6 GW of fully integrated (polysilicon-to-module) manufacturing capacity granted to 3 companies, attracting 496 mio EUR in investments.
  • 2nd phase: 19.8 GW awarded to 11 companies, expected to bring in €1.5 billion in investments.


Wind EnergyOff-shore wind development coupled with competence build-up for higher MW class turbines

India's wind energy sector is also growing, with a current capacity of 42 GW and a target of 140 GW by 2030.

India has established itself as a wind turbine manufacturing powerhouse, with a production capacity of around 12 GW and OEMs achieving localization levels of 70-80%, contributing approximately 7% of global wind turbine production in 2023. While India operates in the 2-3 MW class turbine range, top wind energy countries (except the US) have already migrated to the 4-6 MW class turbine ranges.

The Ministry of New and Renewable Energy (MNRE) has a roadmap targeting 37 GW of offshore wind power by 2030, focusing on harnessing wind resources in India's seas and oceans.

For India to establish itself as a global wind energy production powerhouse, it is imperative that India develops a domestic market and manufacturing ecosystem for these high MW class turbines.

Green Hydrogen

India's National Green Hydrogen Mission (NGHM) launched the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme in January 2023, with a dedicated outlay of 2 bln EUR up to FY30. SIGHT aims to incentivize green hydrogen production and ecosystem development through two financial components:

  • Manufacturing of electrolysers to stimulate domestic production and reduce costs.
  • Incentives for green hydrogen production to make it commercially viable compared to fossil fuels.

SIGHT has already allocated 412 thsd metric tonnes for green hydrogen and 1.5 GWper annum of electrolyser manufacturing capacity, targeting 5 mio metric tonnes of annual green hydrogen production by 2030. This initiative is expected to attract over 93 bln EUR in investments, create jobs, and reduce fossil fuel reliance and greenhouse gas emissions.

By leveraging its renewable energy resources and fostering a strong domestic manufacturing ecosystem, India is poised to secure a sustainable energy future. This presents a compelling investment opportunity for global players in the dynamic and growing renewable energy sector.

For additional insights and deep dive discussion EAC team members Anup Barapatre and Anjali Singh can be contacted.