India Renewable Energy Market

Market Overview 2024-2032:

The India renewable energy market size reached US$ 22.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 46.7 Billion by 2032, exhibiting a growth rate (CAGR) of 8.71% during 2024-2032. The rapid technological advancements in renewable energy technologies, such as solar photovoltaics, wind turbines, and energy storage systems, the increasing concerns about climate change and the environmental impacts of fossil fuels, and the rising demand for clean and sustainable energy solutions are some of the factors propelling the market.

Renewable energy refers to energy generated from natural sources that are constantly replenished, such as sunlight, wind, water, and biomass. It is crucial in mitigating climate change, reducing greenhouse gas emissions, and transitioning towards a sustainable, low-carbon future. It helps reduce dependence on finite fossil fuel resources, which are both environmentally damaging and subject to price volatility. By harnessing renewable sources, countries can enhance energy security and promote self-sufficiency in meeting their energy needs. Renewable energy sources are cleaner and have lower environmental impacts than traditional fossil fuels. They do not emit harmful pollutants or contribute significantly to air pollution, thus improving public health and reducing the negative consequences of climate change. Moreover, renewable energy technologies have experienced significant advancements in recent years, leading to cost reductions and increased efficiency. This has made renewable energy increasingly competitive with fossil fuels, driving its widespread adoption and deployment across various sectors, including electricity generation, transportation, and heating.

The market in India is majorly driven by increasing government support by implementing supportive policies. These initiatives have attracted investments and created a favorable environment for renewable energy development. Furthermore, the declining costs of renewable energy technologies, particularly solar and wind, are significantly contributing to the market. The lowered prices of solar photovoltaic modules and wind turbines have made renewable energy more competitive with fossil fuels. Apart from this, India's rapidly growing economy and expanding population have resulted in an accelerating demand for energy. To meet this increasing demand, renewable energy sources are being utilized as a sustainable and clean alternative to conventional fossil fuels. The decentralization of power generation through renewable energy projects also helps to address energy access challenges in remote areas. Furthermore, the Indian government's focus on increasing energy access and electrification in rural areas has amplified the demand for renewable energy solutions. These areas often lack reliable access to the grid, and decentralized renewable energy systems offer a practical and sustainable way to meet their energy needs.

India Renewable Energy Market Trends/Drivers:

Increasing focus on improving air quality

In India, the escalating demand for renewable energy driven by rising greenhouse gas emissions. The country has been experiencing significant levels of air pollution and environmental degradation due to its heavy reliance on fossil fuels. This has led to a growing awareness of the need to shift towards cleaner and more sustainable energy sources. Renewable energy offers a viable solution to mitigate greenhouse gas emissions and combat climate change. The generation of electricity from renewable sources such as solar, wind, and hydropower significantly reduces carbon dioxide emissions compared to traditional fossil fuel-based power generation. As a result, there is a strong push for renewable energy adoption in India to reduce the carbon footprint and improve air quality.

Rising awareness among individuals regarding the benefits of renewable energy

The rising awareness among individuals regarding renewable energy benefits is propelling the market. There has been a notable shift in public perception towards renewable energy and its advantages in recent years. Individuals are becoming aware of the detrimental effects of fossil fuel consumption on the environment, climate change, and air pollution. This awareness has led to a greater appreciation for renewable energy sources such as solar, wind, and hydropower, which are cleaner, sustainable, and have a lower environmental impact. Moreover, the awareness of the benefits of renewable energy has also been fueled by educational campaigns, media coverage, and advocacy efforts. As individuals learn about renewable energy technologies and their positive impacts, there is a growing demand for clean energy solutions at the individual and community levels. Individuals and businesses are actively seeking renewable energy options, installing rooftop solar panels, and opting for green energy plans offered by utility companies. This increased demand creates a favorable market environment for renewable energy companies and drives investment in renewable energy projects.

Growing incidences of stroke, ischemic heart disease, chronic obstructive pulmonary disease (COPD), and lung cancer

The growing incidence of several diseases due to air pollution, such as stroke, ischemic heart disease, chronic obstructive pulmonary disease (COPD), and lung cancer, is favorably impacting the market. The detrimental effects of air pollution on human health have become a major concern, leading to increased awareness and a call for cleaner energy solutions. With its minimal emissions and reduced environmental impact, renewable energy is vital in improving air quality and reducing pollution-related health risks. The transition to renewable energy sources such as solar, wind, and hydropower can help mitigate the harmful effects of air pollution, reducing the incidence of associated diseases. Furthermore, multiple government initiatives to tackle air pollution and improve public health, coupled with supportive policies and incentives for renewable energy, are driving the growth of the renewable energy market.

India Renewable Energy Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India renewable energy market report, along with forecasts at the country and regional levels from 2024-2032. Our report has categorized the market based on type and end use.

Breakup by Type:

• Hydroelectric Power
• Solar Energy
• Wind Power
• Bioenergy
• Others
   

Solar energy dominates the India renewable energy market

The report has provided a detailed breakup and analysis of the India renewable energy market based on type. This includes hydroelectric power, solar energy, wind power, bioenergy, and others. According to the report, solar energy represented the largest segment.

Solar energy is dominating the India renewable energy market due to numerous factors. India is blessed with abundant sunlight throughout the year, making it an ideal location for solar energy generation. The country has a vast solar potential that can be harnessed to meet its growing energy needs. The availability of ample sunlight has attracted significant investments in solar power projects, leading to the rapid expansion of the solar energy segment.

Furthermore, the declining costs of solar photovoltaic (PV) technology have made solar energy increasingly cost-competitive with conventional sources of electricity. The decreasing prices of solar panels, advancements in PV technology, and government incentives have made solar power a financially viable option for utility-scale and distributed generation projects. This has resulted in a rise in solar energy installations across the country.

Moreover, the Indian government has introduced various policy initiatives and financial incentives to promote solar energy adoption. For example, the Jawaharlal Nehru National Solar Mission (JNNSM) aims to achieve 100 GW solar capacity by 2022. The government's commitment to renewable energy targets and supportive policies such as long-term power purchase agreements and tax benefits has boosted investor confidence and encouraged the development of solar power projects.

Breakup by End Use:

• Residential
• Commercial
• Industrial
• Others
   

Industrial holds the largest share of the India renewable energy market

A detailed breakup and analysis of the renewable energy market based on the end use have also been provided in the report. This includes residential, commercial, industrial, and others. According to the report, industrial accounted for the largest market share.

The industrial segment is dominating the India renewable energy market due to numerous reasons. Industrial establishments have a high energy demand, making them major electricity consumers. By adopting renewable energy sources, such as solar, wind, biomass, or hydropower, industrial players can reduce their reliance on conventional fossil fuel-based energy and lower their carbon footprint. This transition to clean and sustainable energy sources aligns with their corporate sustainability goals and environmental commitments.

Moreover, the industrial sector often requires a large-scale and continuous electricity supply for manufacturing processes and operations. Renewable energy technologies, particularly solar and wind, can offer reliable and cost-effective solutions for meeting these energy demands. The declining costs of renewable energy technologies have made them increasingly competitive with traditional energy sources, making them an attractive option for industrial players.

Furthermore, the government of India has implemented various policies and incentives to encourage the industrial sector's adoption of renewable energy. These include financial incentives, tax benefits, and renewable purchase obligations (RPOs). RPOs require industries to procure a certain percentage of their energy consumption from renewable sources, further driving the demand for renewable energy adoption.

Breakup by Region:

• North India
• West and Central India
• South India
• East India
   

North India exhibits a clear dominance, accounting for the largest India renewable energy market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, West and Central India, South India, and East India. According to the report, North India was the largest market for India renewable energy.

The North Indian region has emerged as India's largest market for renewable energy. The region has abundant rivers and hilly terrains, which offering suitable conditions for the development of small-scale hydroelectric power plants. This has led to significant deployment of hydroelectric projects in North India, contributing to the growth of renewable energy capacity.

Furthermore, numerous initiatives undertaken by the governing agencies of various states in North India have played a crucial role. These agencies have implemented supportive policies, regulatory frameworks, and financial incentives to promote renewable energy adoption. This has created a favorable business environment for renewable energy projects and attracted regional investments.

Moreover, the abundance of solar and wind energy resources in North India has also been instrumental in driving the renewable energy market. The region experiences high solar irradiation and favorable wind conditions, making it suitable for the development of solar and wind power projects. The availability of these renewable resources has encouraged the establishment of solar parks, wind farms, and rooftop solar installations, contributing to the market's growth.

Competitive Landscape:

Top renewable energy companies in India are playing a vital role in driving the growth of the renewable energy market across the country. These companies are at the forefront of innovation, investment, and project development, contributing significantly to the expansion of renewable energy capacity. They have substantially invested in renewable energy projects, including solar, wind, hydropower, biomass, and geothermal. Their financial resources and expertise enable them to develop large-scale projects and drive the deployment of renewable energy technologies across the country. Moreover, these companies are actively involved in research and development efforts to enhance the efficiency and performance of renewable energy systems. They invest in cutting-edge technologies and collaborate with research institutions to drive innovation and improve the overall competitiveness of renewable energy solutions. Furthermore, they have established strong partnerships and collaborations with various stakeholders, including government agencies, financial institutions, and technology providers. Such collaborations facilitate the implementation of renewable energy projects, streamline regulatory processes, and ensure access to funding, ultimately driving market growth. Additionally, these companies are actively involved in community engagement initiatives and corporate social responsibility activities. They educate and raise awareness about the benefits of renewable energy among the public, support local communities, and contribute to sustainable development. Besides, their market presence and reputation are catalysts for attracting investments and creating a conducive business environment for the renewable energy sector.

The report has provided a comprehensive analysis of the competitive landscape in the India renewable energy market. Detailed profiles of all major companies have also been provided.

Recent Developments:

• In February 2021, Tata Power Renewable Energy Limited (TPREL), a wholly-owned subsidiary of Tata Power, signed an agreement to acquire a 100% stake in the operating solar projects of Sterling and Wilson Private Limited (SWPL) for an enterprise value of approximately INR 1,600 crore (around USD 219 million). This acquisition added around 253 MW of operating solar capacity to Tata Power's renewable energy portfolio.
• In June 2021, NTPC Limited signed a memorandum of understanding (MoU) with the Indian Institute of Forest Management (IIFM) to implement a project to develop a green cover and eco-restoration plan near NTPC's coal mining projects. This collaboration aims to promote sustainable practices and enhance environmental conservation efforts.
• In January 2019, Suzlon Energy secured a 50.4 MW wind power project from Atria Power. The project involved supplying, installing, and commissioning Suzlon's S111-140m wind turbine generators (WTGs) in the Anantapur district of Andhra Pradesh, India.

India Renewable Energy Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India renewable energy market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India renewable energy market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India renewable energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.