Renewables are growing by leaps and bounds. It is no more considered as an alternative source of energy. Globally, an estimated investment to the tune of USD 10 trillion will be done in the energy sector between 2014 and 2035, out of which, USD 6 trillion will be invested in renewables. USD 1.2 trillion will be invested in wind and solar and slicing it further, close to USD 620 billion will be invested in wind. Investments continue to grow due to the global phenomenon of the cost to produce energy from renewables has fallen dramatically. This is largely accredited to innovation and a mature technology which enables the sector to compete with conventional energy.
India has emerged as the third largest renewable energy market in the world in terms of annual installations and the fourth largest in cumulative terms. India has the potential of 300 GW of onshore and another 100 GW of offshore capacity.
Indian wind energy sector crosses 32 GW of installed capacity as it witnessed a record installation of 5,400 MW in FY17, registering a 60% growth as against 3,400 MW in FY16. This has been the highest capacity addition in a single year in the history of the country. The wind sector has only achieved 10% of its potential with a cumulative installation of 32 GW till FY17 and it is expected to reach 70 GW by 2022.
The growth in RE sector has been rapid in the last two years in India. In FY15, the total investment in renewables was USD 4 billion. Subsequently, it was USD 7 billion in FY16 and USD 14 billion in FY17. The renewable sector is now growing by 100% on a YoY basis. Overall, RE installations has grown from 36 GW in FY15 to 57 GW in FY17. This whole sector is witnessing unprecedented growth.
Due to Government’s thrust on the RE industry, there is a lot of interest shown by investors. There was excellent support by the State Governments to establish greenfield manufacturing units, presence of FIT framework, project management, evacuation and installations. The central government also ably supported this growth with policy support (GBI & Accelerated Depreciation), thus enabling this historical milestone of 5,400 MW.
This momentum will continue and we are very confident that in FY18 the wind industry will deliver 6,000 MW of new capacity. It will primarily be driven by the maturity of the manufacturing base, cost-competitive supply chain in India and availability of reliable products which is bringing down the cost of energy. The PLF of the new generation turbines are touching 40% efficiency. With the integration of wind, solar and efficient storage the PLF is expected to rise to 65% which is as good as any utility scale.
Today the country has an annual manufacturing capacity of 10,000 MW and has created over a million jobs. India is well positioned to become the global manufacturing hub for wind turbines, with more than 7GW being exported so far. The sector holds the potential to generate five million jobs. Wind is truly “Make in India’’
The wind sector in India is at the cusp of a major transformation. From a market largely driven by FIT that was sweetened by government incentive like GBI, the sector is moving towards a competitive market which is going to be driven solely by price, paving the way for industrialization.
Suzlon is leading the growth of the wind industry in the country with 34% of the 32 GW being installed and lighting the lives of over 50 million Indians. Suzlon has over 11 GW of installed capacity in India and generates over 10,000 direct jobs and creates close to 1,00,000 indirect jobs.
We at Suzlon are fully committed to the development of renewable energy sector in the country. The aim is to build sustainable green economy and to provide affordable energy for all, in pursuit of better life for future generations. We thank all our stakeholders for shouldering and sharing our vision of powering greener tomorrow.
Earlier this year, the International Monetary Fund (IMF) in its annual economic report predicted India’s GDP growth at 7.4% and China’s at 6.8% in FY 2019.
The scaling up of Renewable energy is imperative to the success and growth of the ‘Make in India’ initiative. With government’s thrust, the country is experiencing positive winds of change in the Energy sector particularly in Renewables.
The budget is clearly focused on reinventing a New India, with specific measures announced for strengthening the rural and agricultural economy in addition to infrastructure development.