India has embarked on a transformative journey towards renewable energy, with a particular focus on solar power. As one of the fastest-growing economies globally, India faces significant energy demands. To address these while tackling environmental concerns, the country has placed renewable energy at the forefront of its agenda. In 2023, India held the third position globally in solar power generation, making a significant 5.9% contribution to the sector’s global growth
India’s renewable power capacity is set to double from 2022 to 2027, with solar PV accounting for three-quarters of the growth, considering the target of achieving net zero by 2050.
Key Policy and Regulatory Reforms aiding the Renewable Energy potential in India
Among renewable sources, solar energy stands out as a pivotal component of India’s energy transition strategy. The country’s solar sector has experienced exponential growth, driven by favorable policies, technological advancements, and increasing investment. India’s abundant sunlight makes it particularly conducive to solar power generation.
Solar Module Manufacturing
• Module Manufacturing capacity to grow 2.1 times by FY29 aided by PLI Scheme and Backward integration through production of Polysilicon, Wafers and Cells.
• China plus one to benefit Indian Solar Module Manufacturers due to rising demand from the US, EU, Africa and the Middle East.
• Indian Solar module exporters have seen a significant surge attributed primarily to the restrictions imposed by certain countries on Chinese Imports, thereby creating a supply gap and a notable opportunity for Indian players.
M&A Trends
• India accounted for 20% of Asia’s Renewable Energy M&A deal value in 2022 and 2023.
• The Energy sector saw a steep rise of 63% in deal value in 2023, being driven by large deals.
• Driven by India’s target of clean energy capacity of 500 GW by 2030, the solar energy sector has seen a 30-fold increase in M&A activity from 2014- 2023.
• Past trends and Government push for clean energy likely to drive M&A Activity upwards in 2024-25
Conclusion
India’s renewable energy and solar sectors are pivotal in the country’s quest for energy security, economic growth, and environmental sustainability. With ambitious targets and supportive policies, India continues to lead the global renewable energy transition, positioning itself as a key player in the solar energy landscape.