India's Solar Surge: Brightening The Energy Landscape

Updated on: 25 October 2023 10:06 pm

Despite inflationary challenges and elevated interest rates, financing in the solar industry has remained robust through the first three quarters of 2023, Mercom Capital Group CEO Raj Prabhu

Corporate Funding In Global Solar Industry Surges 55% To $28.9 Bn In Jan-Sep: Mercom Capital Photo: Despite inflationary challenges and elevated interest rates, financing in the solar industry has remained robust through the first three quarters of 2023, Mercom Capital Group CEO Raj Prabhu

The International Energy Agency (IEA), in its freshly-minted "World Energy Outlook 2023," released on Tuesday, paints a vivid picture of the world's electric future, and India shines bright. The report projects that by the close of this decade, a whopping 18% of India will source 18 percent of its electricity from the sun, a significant leap from the current 6 percent.

Globally, renewables are on track to power half of the world's homes, offices, and industries, thanks to the stratospheric rise of clean technologies. This burgeoning list includes familiar solar and wind powerhouses, electric vehicles, and advanced heat pumps. This seismic shift promises a world where the roads teem with nearly tenfold the number of electric cars we see today.

Yet, the IEA's outlook isn't without its shadows. The spectre of climate change looms large, with emissions still alarmingly robust, potentially nudging global temperatures over the precarious 1.5°C threshold.

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Back in India, the sunny prognosis is bolstered by ambitious national targets. The nation is set on a formidable 500 GW of non-fossil fuel capacity by 2030, of which solar is slated to contribute around 270 GW. And there's already evidence of this momentum: this past August heralded a milestone as solar power generation capacity in India breezed past the 70,000 megawatt mark.

The IEA report doesn't just celebrate numbers; it applauds the vision. It spotlights the strategic policies adopted across nations, fueling the diversification of clean energy technology supply chains. From the USA's "Inflation Reduction Act" to the EU's "Net Zero Industry Act" and India's "Production-Linked Incentives Scheme,", global policy-making showcases an unwavering commitment to a greener future.

Lastly, the report recognizes India's pivotal role in the global energy theater. In its Stated Policies Scenario (STEPS), India emerges as the dominant force driving global energy demand, outstripping Southeast Asia and Africa. The subcontinent is a participant and a leading player in the clean energy revolution.