Tesla CEO Elon Musk has Twitter-teased a potential entrance to the Indian market for the electric vehicle maker in recent years. If the billionaire does ever bring his renewable-energy vision to India, he may want to lead with battery-based energy-storage solutions for the grid rather than electric cars.
The Indian power market is undergoing a seismic shift. The country's fight against crippling pollution and the pressing need for clean power have energized its renewable-energy sector. The administration of Prime Minister Narendra Modi has made sustainable, clean electricity a key policy priority by setting an ambitious goal of producing 175 gigawatts (Gw) of renewable energy by March 2022, equivalent to 40 percent of the country's total power capacity.
The world's third-largest energy consumer after the U.S. and China, India has grown leaps and bounds in renewable-energy production over the past few years, with new capacity being brought online by renewable sources surpassing new coal capacity for the first time in 2017. Last year renewables accounted for 71 Gw of India's installed generating capacity, around 8 percent of India's overall electricity generation. As much as 74 percent of India's new power capacity addition in 2018 was renewables, led by solar power, which is projected to soar from 6 percent at present to 24 percent in a decade.
Globally, India ranks fifth in terms of total renewable-energy installed capacity, behind China, the U.K., Germany and the U.S., according to a Climatescope 2018 report from Bloomberg New Energy Finance.
With a population of 1.3 billion people, the South Asian economic nation is projected to overtake China as the largest growth market for renewable energy by 2020. India's energy-consumption growth of 4.2 percent is faster than that of all major economies.