Indian Electricity Sector: Sun Rising on India’s Renewable Energy Industry

India is looking to phase out its polluting thermal power plants to meet its climate sustainability goals. However, the growing population and rapid industrialization have surged India’s electricity demand in recent years and the trend is expected to continue over the next two decades. To meet this increased power demand, India has embarked on an ambitious project to increase its renewable energy installed capacity to 175 Giga Watt by 2022. On one hand, India has imposed compensation cess on its coal-based thermal plants, legislated stringent emission norms, decided to close inefficient thermal plants, and restricted the installation of new ones. On the other hand, India has aggressively pursued solar and wind power plant and have quadrupled its installation capacity within a decade. India has also expanded its horizons to pursue additional sources of renewable energy such as off-shore wind energy and wind-solar hybrid projects. A combination of such push and pull policies have started India’s transition into a clean and green energy country. In the attached report, we have covered the key policy measures adopted by India and our thoughts on certain focus areas that can put India on track to achieve its energy goals.