India’s clean energy sector is poised for a significant leap forward by 2030, with the country emerging as a key player in global clean energy manufacturing, according to a recent report from S&P Global Commodity Insights.
As part of its ongoing efforts to reduce carbon emissions and drive economic growth, the Indian government has introduced a range of policies aimed at boosting local production and innovation within the renewable energy sector.
The Production-Linked Incentive (PLI) scheme, a flagship initiative designed to attract investments in solar modules and battery production, is at the heart of India’s clean energy push. These incentives, along with tariffs on imports and favorable taxation policies, are expected to not only meet the growing domestic demand but also position India as a leading force in the global clean energy supply chain. Jessica Jin of S&P Global stressed the role of these initiatives in driving substantial growth in the country's clean energy capacity.
Projections indicate that by 2030, India will achieve production capacities of 107 GW in solar photovoltaic (PV) modules, 20 GW in wind turbine nacelles, 69 GWh in battery cells, and 8 GWe in electrolysers. This expansion is expected to make India fully self-sufficient in solar PV and wind energy and over 90 per cent self-sufficient in battery cell production. Indra Mukherjee, also of S&P Global, highlighted how this projected growth could transform India’s energy landscape.
Despite these promising developments, challenges remain. In the wind energy sector, domestic manufacturers are gradually taking over market share from Western turbine companies. However, much of India’s wind turbine manufacturing capacity remains underutilised. Moreover, while the country has made strides in building up its manufacturing capabilities, it still faces hurdles in meeting its ambitious renewable energy installation targets. Technological innovation, shortages of skilled labor, raw material procurement, and infrastructure development continue to pose obstacles.
The solar PV industry is grappling with its own challenges, particularly in achieving its goals for polysilicon and wafer production, which affects its global competitiveness. Similarly, India’s wind turbine product mix needs to align with international standards to boost exports. The emerging offshore wind sector, seen as a key future growth area, will also require substantial further investment to reach its potential.
