Renewable energy, often referred to as clean energy, comes from natural sources or processes that are constantly replenished. For example, sunlight or wind keep shining and blowing, even if their availability depends on time and weather.
Renewable resources include solar energy, wind, falling water, the heat of the earth (geothermal), plant materials (biomass), waves, ocean currents, temperature differences in the oceans and the energy of the tides. Companies within the sector provide a variety of clean energy including solar, wind, hydroelectric, geothermal, and biomass.
1. Increasing Demand:
a. In June 2021, Prime Minister Narendra Modi stated that renewable energy capacity in India increased by 250% between 2014 and 2021.
b. The Central Electricity Authority estimates India’s power requirement to grow to reach 817 GW by 2030. Most of the demand will come from real estate and transport sectors.
2. Increasing investments:
a. Rising foreign investment in the renewable sector (such as the US$ 75 billion investment from the UAE) is expected to promote further investments in the country.
b. Non-conventional energy sector received FDI inflow of US$ 11.21 billion between April 2000 and December 2021.
3. Policy support:
a. In the Union Budget 2022-23, the government allocated Rs. 19,500 crore (US$ 2.57 billion) for a PLI scheme to boost manufacturing of high-efficiency solar modules.
b. In June 2021, India launched the Mission Innovation CleanTech Exchange, a global initiative that will accelerate clean energy innovation among countries.