BNEF: PM Modi to keep on developing India’s renewable energy market in new term

May 29, 2019 – The party of India’s incumbent Prime Minister Narendra Modi has won a majority in the parliament ensuring the position for Modi for five more years until May 2024. The prime minister has made India one of the leaders of the global renewable energy market, BNEF said in a reasearch note.

India's incumbent Prime Minister Narendra ModiIndia’s energy portfolio has changed considerably from a major share of traditional coal generation since Modi’s first ambitious statement in 2015 that 175 GW of renewable facilities would be built until March 2022. The target is unlikely to be reached due to slower than expected implementation of the solar roof program, but the policy gave a tremendous impetus to the whole industry.

During Modi’s five years in power, installed renewable capacity more than doubled to 79 GW in May 2019 from 32 GW in May 2014.

Utility-scale solar energy was the main beneficiary from the government’s greener policies. The solar power market has surpassed all the competitive segments in annual terms, and it keeps rising. New opportunities appeared in the segment including solar roofs, floating solar plants and wind-and-sun cogeneration power plants.

India held its debut wind power auction only in February 2017 as it had been initially focused on solar power. This was a good starting point for the segment’s development which had so far stagnated at around 2.5-3 GW of installed capacity annually. BNEF expects India’s onshore wind power market to advance to some 5 GW of installed capacity until 2022. In 2020, the government may hold its debut offshore wind auction.

Electric transport is still a small segment in India. In 2018, the state sold only 3,000 EVs as compared with 3.4 million combustion engine cars. Two- and three-wheeled EVs are still the first choice for India and other Asian markets.