A recent study conducted by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research underscores the urgent need for India to accelerate its renewable energy installations to fulfill its ambitious 2030 target of 500 gigawatts (GW). The report, released amidst a landscape of evolving energy dynamics, highlights the current scenario and outlines crucial recommendations to navigate the challenges hindering progress in the renewable sector.

As of March 2024, India has successfully installed approximately 190 GW of renewable energy capacity. However, to reach the 2030 milestone, the nation must amplify its annual installation rate to approximately 50 GW. This stark contrast from the 18 GW added in the fiscal year 2023-24 emphasizes the necessity for a significant surge in renewable energy projects.

The investment trajectory in the renewable sector reflects a slight downturn, with investments dropping from US$11.7 billion in FY 2022-23 to US$11.4 billion in FY 2023-24. To align with the 2030 objectives, the report indicates a need for more than 2.5 times the installation rate compared to the previous fiscal year.

Addressing the challenges impeding the conversion of issued tenders into actual projects and limiting investment flow, the report puts forth key policy recommendations. These include easing import barriers, sector-specific tax breaks, and stringent enforcement of Renewable Purchase Obligations (RPO) and Energy Storage Obligations (ESO).

Specific challenges within the solar photovoltaic (PV) supply chain are identified, such as price disparities between domestic and imported modules and insufficient domestic module capacity. The report recommends measures like relaxing import regulations and including leading global manufacturers in the Approved List of Models and Manufacturers (ALMM) to address these issues.

Furthermore, the study stresses the critical need for skilled solar PV manufacturing technicians and emphasizes extending exemptions on Inter-State Transmission System (ISTS) charges until 2030 for utility-scale renewable energy projects.

In light of lax enforcement of RPO compliance by state electricity distribution companies (DISCOMs), the report suggests imposing penalties for non-compliance to ensure stricter adherence to regulations.

The comprehensive report from IEEFA and JMK Research not only provides critical insights into the renewable energy landscape but also offers actionable recommendations for policymakers. These recommendations are geared towards expediting renewable energy deployment and attracting the necessary investments to ensure India's success in meeting its ambitious 2030 renewable energy targets.