Dramatic fall in costs of renewable energy in the last 24 months has not only accelerated the replacement of fossil fuels by renewable energy in electricity generation but also the low-cost renewable electricity has now started to replace fossil fuels.
During the FY 2019-20, electricity generation from all sources accounted for a total of 1,391 Billion Units (BUs).
Looking at the percentage of electricity generated from conventional and renewables sources, renewables, including large hydro, accounted for 21.2% against 78.8% generated from conventional sources, including the electricity imports from Bhutan.
Compared to the previous two financial years – FY2017-18 and 2018-19 – renewable energy has increased by 3.8% and 2.2%, respectively.
As per Mercom report, as of March 31, 2020, the country’s total installed power capacity stood at about 372 GW, up from 358.6 GW during the same time last year. Of this, the installed power capacity from renewable sources (including large hydro) accounted for about 134.7 GW, up from about 125.5 GW as of Q1 2019. Solar installations accounted for about 27.2% of the overall renewable capacity.
Even though solar was the most installed new power generation source over the past three years, in terms of generation, its contribution compared to coal is still very small.