Driving Clean Energy: India’s 3.98% Capacity Growth and 23.68% Solar Power Surge in 2022-23

Energy, Solar

Driving Clean Energy: India’s 3.98% Capacity Growth and 23.68% Solar Power Surge in 2022-23

In the global push for sustainability, significant emphasis is placed on expanding infrastructure and upgrading technology to ensure modern and sustainable energy services for all, particularly in developing countries (SDG Target 7.B). The “Energy Statistics India 2024 Report” underscores the urgency of developing an energy system capable of meeting the burgeoning and emerging needs of developing economies, especially in densely populated regions of Asia, including India. As energy demands continue to grow, there is an increasing need to transition to cleaner fuels and larger energy systems.

Expansion of Installed Generating Capacity
India has been focusing on increasing its installed generating capacity while reducing reliance on primary fossil fuels. This strategic direction aims to provide reliable power at competitive prices sustainably by optimizing the use of multiple energy resources with innovative eco-friendly technologies. The environmental and health burdens associated with hydrocarbon use further drive the world toward energy efficiency and clean energy systems.

Notably, not all potential capacity is viable to transform into actual capacity. Moreover, installed capacity does not always translate into an equal amount of generation due to production losses and downtime for maintenance or refueling. Power plants have a capacity to produce a certain amount of power during a given time, but offline periods mean they are not generating power.

Coal Washeries and Oil Refineries
As of March 31, 2022, India had a total installed capacity of coal washeries amounting to 214.02 million tonnes per year (MTY). Similarly, as of March 31, 2023, there were 23 refineries in the country, including 19 in the public sector and 4 in the private sector and joint ventures. The country’s refining capacity stood at 2,53,916 thousand metric tonnes per annum (TMTPA), marking an increase of 2700 TMTPA from the previous year. Public sector refineries dominate with over 61% of the total capacity in India.

The refinery production (crude throughput) achievement was 2,41,704 thousand metric tonnes (TMT) during 2021-22, increasing to 2,55,233 TMT in 2022-23, a net increase of 0.1%. Consequently, the overall capacity utilization of refineries rose from 96.99% in 2021-22 to 101.60% in 2022-23. The Indian Oil Corporation (IOC) in the public sector increased its capacity utilization from 96.60% in 2021-22 to 103.37% in 2022-23. However, the private and joint venture sectors experienced a negative growth rate of 2.49% during FY 2022-23 compared to the previous year.

Electricity Generation Capacity
The installed capacity of electricity generation in India increased by 3.98% to 4,95,199 megawatts (MW) in 2022-23 from 4,76,229 MW in 2021-22, according to the Energy Statistics India 2024 Report. The major share of installed capacity lies with utilities, accounting for 84.02%. India’s energy mix has been shifting from conventional energy resources to renewable sources. The financial year 2022-23 witnessed a 12.20% growth in the installed capacity of Renewable Energy Sources (RES), excluding hydro, under utility, while thermal sources grew by only 0.49%.

Regional Distribution and Growth
The geographical distribution of installed electricity generating capacity as of March 31, 2023, indicates that the Western Region accounted for the highest share (34%), followed by the Southern Region (28%) and the Northern Region (27%). The Northern Region also held the highest share of hydro energy. Among states, Karnataka had the highest share of hydro installed capacity at 3.63 GW, and Rajasthan had the highest share of other renewable resources at 22.05 GW.

Region-wise growth in installed capacity during 2021-22 shows that the Northern Region registered the highest annual growth of about 5.71%. This region also experienced a significant growth of over 21.95% in the RES sector. Among all major states, Rajasthan recorded the highest annual growth (18.63%) in installed capacity.

Renewable Energy
The total installed capacity of grid-interactive renewable power, which was 1,09,885 MW in 2022, increased to 1,25,160 MW (a growth of 13.90%) in 2023, as reported in the Energy Statistics India 2024 Report. Solar power, including rooftops, accounted for about 53.4% of the total installed generation capacity of renewable sources in 2023, followed by wind power (34.1%) and bio power & waste-to-energy (8.2%). In terms of year-on-year growth rates, solar power installed capacity grew by 23.68% from FY 2021-22 to FY 2022-23.

Rajasthan had the highest installed capacity of grid-connected renewable power at 22,398 MW in 2023, followed closely by Gujarat with 19,436 MW, mainly due to wind and solar power.

Off-Grid Renewable Energy Systems
India has also shown steady growth in off-grid and decentralized renewable energy systems. The installation of solar street lighting systems experienced a growth of 1.1% over the previous year. Additionally, solar photovoltaic plants (SPV) registered a remarkable growth of 50.6% over the previous year.

India’s commitment to expanding its energy infrastructure and transitioning to cleaner, renewable sources is evident in the significant growth in installed capacity across various energy sectors. The insights from the Energy Statistics India 2024 Report highlight the country’s strategic approach to addressing energy demands sustainably and positioning itself as a leader in the global transition to renewable energy. This focus not only addresses the environmental and health impacts of traditional energy sources but also underscores India’s role in the future of clean energy.