Indian renewable energy sector may face regulatory actions, like China and Europe: Report

New Delhi [India], March 19 (ANI): The Indian renewable energy (RE) sector may quickly face regulatory pressures taking cues from Europe and China to fight rising challenges comparable to grid disturbances, subsidy-driven incentives, and destructive energy costs, in keeping with a report by JM Monetary.The report refers back to the conditions arising in Western international locations, together with China, which is a significant participant in worldwide renewable energy.”Because the share of RE within the provide combine in India will increase, we count on home insurance policies to be influenced by world experiences within the subsequent 3-4 years,” the report added.The renewable energy (RE) sector has seen fast development, pushed by an evolving governance construction and frequent regulatory adjustments which have allowed for higher flexibility and adaptation.Nevertheless, because the sector expands, there may be growing stress on governments worldwide to implement stricter rules and carry extra self-discipline to market gamers.That is significantly true as the expansion of renewables has begun to trigger challenges comparable to grid disturbances, which have gotten extra evident because the share of renewables within the energy combine will increase.Governments throughout the globe, together with China and Europe, are taking steps to deal with these challenges. In China, policymakers are transferring in the direction of lowering subsidy-driven incentives, because the nation has skilled points with oversupply and destructive energy costs.

In Europe, some nations are controlling the promotion of renewables, because the sector grapples with comparable price-related challenges. These developments counsel that India may quickly face comparable regulatory pressures.”Whereas coverage makers stay formidable of their targets and proceed to facilitate execution, there may be an rising feeling amongst them that subsidy-driven incentives have to be restricted (significantly in China) and promotion of renewables must be managed (in Europe) because the sector struggles with destructive costs. Regulatory actions by China and Germany counsel seemingly developments that, we consider, will probably be seen in India as nicely,” the report added.The report highlights that China’s shift to market-driven pricing of renewable energy and Germany’s motion to deal with destructive energy costs, which suspends subsidies for PV grid integration when electrical energy costs fall beneath zero, is proof of the growing regulatory hand on the sector.In response to the official information, as of twentieth Jan 2025, India’s whole non-fossil fuel-based energy capability has reached 217.62 gigawatts (GW).The 12 months 2024 noticed a record-breaking 24.5 GW of photo voltaic capability and 3.4 GW of wind capability added, reflecting a greater than twofold enhance in photo voltaic installations and a 21 per cent rise in wind installations in comparison with 2023.This surge was pushed by authorities incentives, coverage reforms, and elevated investments in home photo voltaic and wind turbine manufacturing. Photo voltaic energy remained the dominant contributor to India’s renewable energy development, accounting for 47 per cent of the whole put in renewable energy capability.Final 12 months noticed the set up of 18.5 GW of utility-scale photo voltaic capability, a virtually 2.8x enhance in comparison with 2023. Rajasthan, Gujarat, and Tamil Nadu emerged because the top-performing states, contributing 71 % of India’s whole utility-scale photo voltaic installations. (ANI)