India needs to install 30 GW solar capacity annually to meet 280 GW target by 2030: Mercom CEO

Mercom Capital CEO Raj Prabhu said the overall renewable energy sector remains a bright spot for investors as foreign direct investment (FDI) inflow is showing an upward trend. (Representative Image)

India will require to add 30 gigawatt (GW) of solar energy capacity annually to meet the 280 GW solar capacity installation target by 2030, according to US-based Mercom Capital.

Sharing his outlook, Mercom Capital CEO Raj Prabhu said, "The outlook is very positive on the back of various steps taken by the government to help and support the domestic renewable energy sector".

The government launched production-linked incentive programmes, renewable manufacturing zones and a few other initiatives to make India Atmanirbhar in this area. However, policy certainty and timely implementation of these programmes are critical for achieving the government's goal of self-reliance in renewable energy, he noted.

"We must change our mindset from a 10 GW a year industry to a 30 GW a year solar industry and establish all the necessary infrastructure physical, policy and financial to achieve the 280 GW goal (solar capacity installation) along with the energy transition goals," he said.

He further said the overall renewable energy sector remains a bright spot for investors as foreign direct investment (FDI) inflow is showing an upward trend.

The FDI flow in April-December FY23 was at USD 1.66 billion was higher than the USD 1.60 billion attracted in the entire FY22, he said.

India's total installed renewable energy capacity touched the 168.96 GW mark by February 2023-end, Minister for New and Renewable Energy RK Singh informed Parliament last month.

Out of the total 168.96 GW, 64.38 GW is solar power capacity, 51.79 GW hydro, 42.02 GW wind and 10.77 GW biopower, he informed the Rajya Sabha.

Another 82.62 GW of green energy capacity is under implementation and 40.89 GW of capacity is under various stages of tendering, he said in a written reply to the upper House.

A total of 3,16,754.86 MU of electricity has been generated from renewable energy sources during the current year 2022-23 (up to January 2023), Singh said.

According to the minister, India's total power generation capacity was at 412.21 GW as of February 28, 2023.

The government's aim is to achieve 500 GW of installed electricity capacity from non-fossil sources by 2030.