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investments from private sector across the value chain. Most of the
SOME fAcTS participation by private investors has happened in generation sector,
• FDI inflows in the Indian non-conventional energy sector driven by de-licensing of generation, fiscal incentives for large scale
between April 2000 and December 2018 stood at USD 7.48 capacity additions and competitive procurement of power. The sec-
bn. FDI equity inflows in power sector have increased from tor has evolved from a nascent market to a developing market led by
USD 707.04 mn (2014-15) to USD 1105.64 mn (2018-19).
policy reforms and increased private sector participation. Challenges
• More than USD 42 bn has been invested in India’s still exist, however a number of possibilities and opportunities for
renewable energy sector since 2014.
growth do co-exist in the sector.
• New investments in clean energy in the country reached As per national Electricity Plan 2018-based on 19th EPS, some of
USD 11.1 bn in 2018. the projections for Indian Power Sector are as follows:

• Solar sector in India received investments of of USD 9.8 bn • Peak Demand to rise to 226 GW by 2022 and to 299 GW by
in FY2018. 2027
• USD 500 bn worth of investment in creating renewable • Energy requirement to be 1,566 BU in 2022 and 2047 BU in
energy generation capacity with tendering of 500 Gigawatt 2027
(GW) by 2028 in addition to USD 250 bn investment in • Inter-regional Power Transfer Capacity to increase to
grid expansion and modernisation. 118,050 MW by 2022
• Share of rE in Total Generation to be 20.1% by 2022 and
24.44% by 2027
fication in the country within two years. Under UDAy (Ujwal DISCOM
Assurance yojana) scheme for financial and operational improvement renewables
of DISCOMs, various States have issued bonds for a total amount of
6
Inr 232163 crores (USD 32.76 bn ). Short-term energy transactions renewable energy is increasing year-to-year in the energy mix of In-
have increased from 80.87 BU to 120.97 BU with CAGr of 10.59% in dia. As a part of its Paris Agreement commitments, the Government
the last five years. The cross border power transfer by India with of India has set an ambitious target of achieving 175GW of renewable
neighbouring countries is taking place through inter-Governmental energy capacity by 2022. These include 100GW of solar capacity ad-
bilateral cooperation. dition and 60GW of wind power capacity. Government plans to estab-
The policy landscape in India has progressively evolved since In- lish renewable energy capacity of 500GW by 2030.
dependence and has led to radical changes in the power sector, espe- India saw the first inflection point for renewable energy generation
cially in terms of competition, private sector involvement and focus in 2016-17 when the capacity addition in renewable energy was high-
on green energy over the last decade, commencing with the passing of er than the capacity addition for conventional energy sources. Since
the Electricity Act 2003. Till early 1990s, the sector was shielded from last two decades State and Central governments have tried to focus
private sector participation, however, the growing demand-supply on off-grid solutions to meet power demands. The total off-grid instal-
gap led to private sector participation in the sector. The amendment lation is still at a miniscule level as compared to ~360GW (as on July
of Supply Act (1948) in 1991, followed by the enactment of Electricity 2019) of installed power capacity in India.
Act(2003) and notification of Mega Power Policy(1995), national Tariff With government’s ambitious target of 175 GW, the clean energy
Policy (2005), national Electricity Policy and Integrated Energy Policy sector has become quite attractive for both domestic and foreign
have all led to a much liberal power sector, which then saw active investors. India is expected to attract investments of up to USD 80
bn in the next four years. India’s rE policies have a multi pronged
Technology disruptions have unlocked and integrated approach. The rE targets give thrust to large solar
parks, decentralised roof top installations and off-grid solutions
vast new sources of energy while as well. rE policy initiatives positively connect to livelihood op-

changing the contours of demand tions such as in the case of the farmer oriented KUSUM (Kisan Urja
Suraksha Evam Uttham Mahabhiyan) scheme. Transformation of

EnErgising sustainablE & ProsPErous FuturE 11