India added 12.9 GW of solar and wind capacity in CY2023, a decline of 18%

In the Calendar Year (CY), i.e., from January 2023 till December 2023, approximately 10,016 MW of solar and 2,806 MW of wind capacity were added in India. Solar installations decreased by 28%, while wind installations increased by 52% compared to CY2022.

In terms of cumulative installations, according to the data released by the Ministry of New and Renewable Energy (MNRE) till December 2023, India’s RE installation capacity reached 133.89 GW. Solar energy contributes approximately 55% share in the total RE segment, making it the major contributor, followed by wind energy (33%), BioPower (8%), and Small Hydro (4%).

Figure 1: RE installation trends in India

Source: CEA, MNRE, JMK Research

Note: Solar capacity includes utility scale solar, rooftop solar and off-grid/distributed solar capacity

From January to December 2023, about 6.5 GW of new utility-scale solar capacity was added in India. This is about 42.5% lesser installations than in January-December 2022. The reason behind this decline in utility-scale solar installations is due to below-par tender issuance activity during the period from 2020 to 2022. According to the recent upsurge in tender activity, it is anticipated that the utility scale solar installations will increase in the future.

About 3 GW was added in the last 12 months in the rooftop solar segment, this is about 58% higher than the 2022 installations. In the off grid/ distributed solar segment, nearly 500 MW was added, about 31% less than 2022 installations.

Figure 2: Annual Solar capacity addition trends in India

Source: MNRE, JMK Research

In the wind sector, about 2.84 GW of new capacity was added during January-December 2023, 53.5% higher than the 1.85 GW capacity added during January-December 2023.

This growth in wind installations can partly be attributed to the successful resolution of the long pending SECI wind tenders in Gujarat (especially tranche V-Vlll). Furthermore, the increasing popularity of hybrid tenders has also contributed to this rise in wind installations.

In terms of state-wise installations, Rajasthan (2,193 MW), Gujarat (1,317), and Maharashtra (979 MW) were the leading states with most of the large-scale solar installations in 2023. While Gujarat led the wind installations by commissioning more than 1300 MW of new wind projects in this period.

Figure 3: State-wise Solar and wind capacity addition in India from Jan- Dec 2023

Source: MNRE, JMK Research