Solar Energy in India: A 36% Annual Increase Challenge

India needs to accelerate its transition to solar power to reduce its dependence on coal and combat climate change. Discover the challenges and stakes of this crucial transition.

Share:

pa

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Solar energy in India is taking on a central role as the country embarks on a frantic race to increase its production capacity by 36% every year for the next five years. This imperative stems from a recent report published by the British energy think-tank Ember. The report highlights the major challenges India faces in achieving its energy mix ambitions.

The challenge of coal dependence

The current context is worrying: India relies heavily on coal, a highly polluting energy source, for its electricity production. However, there are signs of progress. Investment in the renewable energy sector is growing significantly, and this year has seen India commission a record number of solar panels.

India’s National Electricity Plan (NEP)

Ember’s report is based on India’s recently unveiled National Electricity Plan (NEP). Under this plan, India plans to continue using coal, but with an increasing share of renewables in its energy mix by 2032. At present, solar energy will account for just 5% of India’s total electricity production by 2022. However, the NEP sets an ambitious target of increasing this share to 25% within a decade. To achieve this, a substantial increase in solar capacity is needed every year for the next five years, according to the experts.

Energy storage: a piece of the puzzle

In addition to increasing solar capacity, India also needs to focus on strengthening its energy storage solutions. Solar and wind energy sources are intermittent, which means that storage measures are essential to avoid power cuts.

It is important to note that India, which is hosting the G20 this year, is facing a 29% rise in per capita coal emissions over the past seven years. Unlike many other countries, it has not yet adopted a policy aimed at gradually reducing its use of coal. However, it has announced a goal of carbon neutrality by 2070, albeit later than many other nations.

The crucial importance of this transition

India’s energy future is therefore a crucial issue, both environmentally and economically. If the country succeeds in meeting this challenge and accelerating its transition to solar power, it could not only reduce its dependence on coal, but also play a major role in the global fight against climate change. This transition to solar power is a matter of vital importance for India’s financial and energy future, as well as for the global energy market as a whole.

India is at a crucial crossroads for its energy future. The challenge of increasing its solar energy capacity by 36% per year over the next five years is of paramount importance. This transition to solar power is essential from both a financial and an energy point of view. If India succeeds in this transition, it can reduce its dependence on coal, contribute to the global fight against climate change and open up new economic opportunities. For investors and the energy market, India is becoming a key destination to watch, with far-reaching implications for the future of the energy industry worldwide.

wpd solar France has launched construction of a 140.6MWc photovoltaic park in Marcy, in the Nièvre department, integrating agricultural co-activity across 632 hectares in partnership with five local farms.
Independent energy producer CVE has inaugurated a 12 MWc solar farm on municipal land in Volx, generating 19 GWh annually and an estimated €5mn in economic returns over 30 years.
GreenYellow strengthens its presence in the French overseas territories with the acquisition of 18 rooftop photovoltaic installations in Réunion, totalling 3.1 MWc in capacity, as part of a strategy to consolidate its decentralised energy assets.
The rapid rise of agri-voltaic projects in France raises concerns over agricultural impact, land speculation and the economic viability of a still-emerging model.
Norwegian developer Empower New Energy expands in North Africa with a strategic partnership involving ten industrial solar sites for self-consumption in Tunisia.
Melvan is issuing local bonds to co-finance two photovoltaic projects in Avignon and Sault, aiming to supplement a total budget of EUR5.5mn ($5.82mn).
The 50 MW Kong solar power plant marks a new step in Côte d’Ivoire’s national grid expansion, with CFA37bn ($60.5mn) in funding and commissioning set for early 2027.
EDP will accelerate two major solar projects in Australia after securing government-backed contracts under the Capacity Investment Scheme.
Westbrooke Real et son partenaire CVE South Africa ont racheté un portefeuille solaire couvrant 91 stations Shell en Afrique du Sud, marquant un transfert d’actifs majeur dans le secteur énergétique local.
The commissioning of the 195 MW Springbok plant introduces the continent’s first utility-scale multi-buyer model, reinforcing the growth of power wheeling in South Africa.
The consortium led by Engie and Masdar has been selected to develop a 1.5 GW photovoltaic plant in Abu Dhabi, aimed at expanding the emirate’s solar capacity under its long-term energy strategy.
T1 Energy invests in private solar cell manufacturer Talon PV to support industrial expansion of the U.S. solar sector and address rising grid demand.
The European Bank for Reconstruction and Development is reviewing a loan for a 100 MW photovoltaic project led by Qair in Tunisia, backed by a long-term power purchase agreement with the national utility.
French independent producer CVE has commissioned an agrivoltaic pilot project in Haute-Loire, aiming to test solar panel integration on a cattle farm ahead of a future 12 MWc installation.
Geronimo Power celebrated the near completion of its 125 MW solar farm in Jackson County, marking a major step for the local economy and regional power grid.
GOLDBECK SOLAR Polska has received the Final Operational Notification for its Zwartowo photovoltaic facility, marking a key regulatory milestone in the development of large-scale solar projects in Poland.
H.E Energy will develop 100 low-voltage solar facilities totalling 10MWDC in Hokkaido for SMFL Mirai Partners, with commissioning scheduled by June 2026.
Hokkaido Gas has launched a 2MW solar power plant in Kamishihoro, with an expected annual output of 4.4GWh to be distributed locally through energy supplier Karch.
Sembcorp Industries has signed a purchase agreement to acquire a 300-megawatt solar plant in India, boosting its renewable energy footprint to a total capacity of 6.9 gigawatts.
Spanish solar energy producers have recorded 693 hours of zero or negative prices since January, already matching the total for the previous year, raising concerns about the sector’s profitability and market stability.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.