Accelerating India’s Energy Transition
November 25, 2024
Despite a challenging global economic environment, India’s economy continues to demonstrate remarkable resilience. The country’s Gross Domestic Product grew at a robust 8.2%1 last year, making it the fastest-growing major economy worldwide. Key drivers of this growth include increased public infrastructure investments and strong manufacturing capabilities.
As India experiences fast urbanisation, industrialisation and digital transformation, its energy demand is also surging, with the country projected to account for 25%2 of global energy demand growth over the next two decades. To meet this pressing need while delivering on its climate goals, India is pushing for its transition towards cleaner energy through progressive policies and ambitious renewable energy targets. Sembcorp, with its established presence in India and extensive renewable energy portfolio, will play a pivotal role in this transition.
Sembcorp’s wind and solar assets located in Rajasthan
India’s Green Revolution: A Leader in Wind and Solar Energy
India made substantial strides in renewable energy in 2024, surpassing 200GW of installed capacity. Currently ranked fourth globally in installed renewable capacity, India continues to invest heavily in renewable energy projects to meet its target of 500GW by 2030.
While solar capacity has seen exponential growth, the wind energy sector, targeted to reach 170GW by 2030, also presents potential. The government plans to auction 50GW of renewable projects annually. India’s Green Open Access Registry is also catalysing this transition by democratising access to green energy. The Solar Energy Corporation of India (SECI), a government enterprise, has committed US$120 million to tender for 15GW of new solar energy projects annually, while another US$180 million has been earmarked to finance 4.5GW of renewable energy projects.
India’s National Solar Mission has been instrumental in driving the solar sector’s growth. Solar capacity in the country has increased by 30 times in the last nine years to more than 90GW3. The strong mandate for renewable purchase obligations also creates a guaranteed market for renewable energy producers, providing stable revenue stream and reducing risk exposure. This not only encourages investment in renewable energy projects but also fosters innovation and technological advancements in the sector, leading to more cost-effective renewable energy solutions.
Energy Storage: Crucial to Accelerate India’s Renewables Deployment
As India races to expand its renewable energy capacity, the critical role of energy storage systems becomes increasingly evident. These systems are essential for managing the intermittent nature of renewable sources such as solar and wind power, ensuring a stable and reliable grid. With the country’s ambitious renewables target, the need for scalable and efficient storage solutions becomes more pressing than ever.
India’s National Electricity Plan estimates that the country will require 236GWh of energy storage by 2032, a more than 1000-fold increase from current capacity to meet its renewable energy goals. This underscores the urgency of deploying innovative storage technologies that can seamlessly integrate with the grid and provide reliable backup power during periods of low renewable energy generation.
Beyond grid stability, energy storage systems can help reduce peak demand, lower energy costs and enable the efficient utilisation of renewable energy during off-peak hours. Energy storage can also facilitate the integration of distributed renewable energy sources such as rooftop solar into the grid. This enables India to harness the full potential of its renewable resources to create a resilient and sustainable energy landscape.
Navigating Headwinds for a Sustainable Energy Transition
India's ambitious renewable energy targets offer immense potential for job creation and economic growth. To fully realise this potential requires addressing several key challenges. One of the most significant hurdles is securing financing for the infrastructure investments needed to support the expansion of renewable energy. Attracting foreign investment, promoting public-private partnerships, and exploring innovative financing mechanisms are essential to bridge the funding gap.
Another challenge lies in developing a skilled workforce capable of meeting the demands of the renewable energy sector. India’s transition to renewable energy will generate significant employment opportunities, particularly in wind energy, with an estimated 150,000 jobs by 20304. However, scaling this workforce requires nurturing local expertise and advancing technological capabilities. To address this challenge, India has implemented initiatives such as the National Skill Development Corporation’s programmes to incubate various renewable energy technologies. India is also actively collaborating with international partners on joint research projects and technology transfer agreements to enhance its capabilities in the renewables sector.
Sembcorp: Driving Innovation in India’s Renewable Energy Sector
Since its entry into India in 2008, Sembcorp has built its renewables portfolio to more than 5GW of wind and solar power across 13 states today, anchoring Sembcorp as a key player in India’s renewable energy landscape. As a leader in wind energy, Sembcorp operates one of the largest self-managed wind portfolios in the country. Leveraging advanced digital technologies, Sembcorp enhances operational efficiency through real-time monitoring and predictive maintenance via its Virtual Brain Renewables platform, reducing costs and boosting productivity. Technologies such as WindOS and SolarOS help ensure that assets are operated safely and efficiently, while innovative maintenance solutions such as craneless generator replacement and refurbishment of gearboxes have significantly reduced operational costs.
Sembcorp’s wind turbines located in Bhuj, Gujarat
As an established developer with strong operations and maintenance capabilities, we have attracted a skilled workforce with deep local market understanding, which enhances our competitive advantages. Our development capabilities allow us to participate across all growth vectors. Following the successful acquisitions of independent power producers such as Vector Green and Leap Green Energy, we have seamlessly integrated these assets into our portfolio, providing us with further synergies to enhance our operations and drive organic growth. We continue to expand our presence through strategic acquisitions of renewable assets and disciplined bids for greenfield projects, resulting in over 2GW of renewable projects under development.
Sembcorp’s Gangavathi solar project in Karnataka
As a long-term developer in India, Sembcorp is committed to social responsibility. We support India’s clean energy initiatives by installing solar systems in schools and healthcare centres, and contributing solar-powered streetlights to India’s national programmes. These initiatives have resulted in more than 62,000 beneficiaries of clean energy. We also encouraged the adoption of renewable energy through our sponsorship of energy-efficient solar rooftop systems at Museo Camera, a popular landmark in Gurugram celebrating the art of photography.
Sembcorp’s rooftop solar panels installed at the Museo Camera Centre for the Photographic Arts
India’s Path to Global Energy Leadership
India’s commitment to renewable energy is clear, but the journey requires continued private sector innovation, policy support and infrastructure investments. With abundant solar and wind resources and a growing focus on energy storage, the country has the potential to emerge as a global clean energy hub. Harnessing the strengths of its progressive policies, technological innovations, and skilled workforce, India is well-positioned to solidify its leadership in the global energy transition.
Sembcorp, with our extensive experience and technological expertise, remains a steadfast partner in India’s green energy transformation. As we continue to expand our renewable energy portfolio and leverage advanced technologies, we are committed to working closely with the Indian government and local businesses to drive large-scale renewable projects and innovation in energy storage solutions. By fostering strategic partnerships, investing in talent development, and aligning with India's ambitious goals, Sembcorp aims to further accelerate the country’s transition to clean energy. Together, we will build a sustainable and prosperous future for India, unlocking new opportunities for growth and a greener tomorrow.