Can Modi's Third Term Spark a Renewed Momentum for India's Renewable Energy Sector?

Modi has been sworn in as the Prime Minister of India for a third term, creating significant momentum in the renewable energy sector. 

Over the past decade, India's energy landscape has transformed remarkably. During his 10 years in office, Narendra Modi and his Bharatiya Janata Party (BJP) have committed the world’s third-largest emitter to decarbonizing half of its energy system by 2030 and achieving net zero by 2070. They have also overseen a 59 percent reduction in fossil fuel subsidies, surpassing many other major economies. This has spurred substantial growth in India’s renewables sector, and the recent election results indicate further progress on this front. 

Some of the key initiatives of the BJP-led government over the past decade include the establishment of the International Solar Alliance in 2015, the commitment to achieving 175 GW of renewable energy by 2022, and the ambitious target of net zero emissions by 2070. In their 2014 manifesto, the BJP promised to promote carbon credits, which led to the introduction of a Carbon Credit Trading Scheme in 2022 to incentivise the generation and trading of these credits. The BJP has been instrumental in advancing India's electricity sector, setting a plan to install 500 GW of renewable energy by 2030 and aiming to meet 50 percent of the country's electricity demand with renewables by the same year.

Thanks to the government's positive stance on the renewable sector, its policies have yielded significant results. India has made impressive strides in solar capacity addition, now hosting four of the world's ten largest solar parks, including the second largest, the 2,255 MW Bhadla Solar Park in Rajasthan. Additionally, India is home to Cochin International Airport in Kerala, the world’s first and only 100 percent solar-powered airport. These and other major projects have propelled the country’s installed solar capacity to 82.63 GW, which is 30 times larger than it was nine years ago and the fifth highest in the world.

Significant progress has been made, but much remains to be done in the nation's clean energy sector. The start of Modi's third term has reignited optimism in the renewable sector, largely due to his pre-election pledge to build on India’s renewable energy achievements. 

The third term also comes as a promise to work on the existing schemes, providing for their seamless implementation, such as PM Surya Ghar Muft Bijli Yojana, targeting to light up 1 crore households (10 million households) across India. 

Furthermore, the BJP’s election manifesto laid out plans for creating ‘mega’ solar and wind parks and developing a ‘Green Energy Corridor’ to distribute renewable energy across the country. It also emphasised establishing India as a leading global hub for renewable production. Several industry leaders have expressed relief and optimism, assured of continued support for at least the next half-decade. 

"I extend my congratulations to Shri Narendra Modi for his third term as our nation's leader. The Government’s efforts under his leadership in reforming India’s power sector are commendable. We look forward to working closely with the Government to enable a just energy transition for India by strengthening the renewable energy and transmission segments and exploring low-carbon areas such as smart metering, green hydrogen and battery storage," said Rajiv Ranjan Mishra, Managing Director, Apraava Energy.