By Dr. Radhakrishna B., Director – Customer Advisory, SAS
Earth Day is an opportunity to reflect on how the world confronts the challenges of climate change and energy security, and the push for renewable energy has never been more urgent. For India – one of the fastest-growing economies – this transition is both a necessity and an opportunity. As per the 2023 edition of EY’s Renewable Energy Country Attractiveness Index (RECAI), India now ranks sixth globally in terms of renewable energy investment attractiveness. This shift reflects India’s rapid expansion in the renewable sector, particularly in solar energy, and its ambitious targets to scale up renewable capacity.
India’s renewable energy sector has witnessed significant growth. According to a study by Mercom, in 2024 alone, India added 24.5 GW of solar power, more than doubling its previous year’s installations, making it one of the fastest-growing solar markets globally. Wind energy capacity also grew by 3.4 GW in 2024, marking a 21% rise compared to 2023.
The Indian government has introduced several key policies and initiatives to accelerate renewable energy adoption, driven by various ministries and agencies:
Renewable Energy Purchase Obligations (RPOs): Mandated by the Ministry of Power, RPOs require electricity distribution companies, open-access consumers, and captive power producers to source a specified percentage of their energy from renewable sources, ensuring sustained demand for clean power.
Production-Linked Incentive (PLI) Schemes: To boost domestic manufacturing, the government launched PLI schemes offering financial incentives for the production of high-efficiency solar PV modules and battery storage solutions, reducing dependence on imports.
Micro-Generation Initiatives: The Ministry of New and Renewable Energy (MNRE) is promoting micro-generation through schemes like the PM Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), which supports the installation of small-scale solar power systems in rural areas. These micro-generators, encompassing sectors beyond just housing, facilitate the transition from traditional power generation by decentralizing energy production. Additionally, the integration of micro-generation with electric vehicles (EVs) enhances clean energy utilization in both public and private transportation.
In addition to these policies, India is also seeing significant corporate investment in clean energy, with leading enterprises setting ambitious net-zero targets. For example, companies such as Tata Power, Adani Power, NGEL and Reliance are actively scaling up solar and wind energy projects, while financial institutions like SBI are providing green financing solutions to accelerate renewable adoption.
Collectively, these initiatives reflect India’s commitment to expanding its renewable energy footprint and achieving its clean energy targets.
The Role of Technology in Strengthening Renewable Energy Initiatives
While India’s transition to renewable energy is progressing rapidly, several challenges must be addressed to sustain this momentum. Regulatory delays, particularly changes in land policies, have significantly increased project costs and slowed the pace of solar energy development. Moreover, the inherently variable nature of renewable sources like solar and wind makes consistent power generation a challenge, especially without adequate forecasting and storage support. Grid stability remains a critical concern, as the integration of high levels of intermittent renewable energy can strain the power system, necessitating investments in smart grids.
Despite India’s ambitious clean energy commitments, investment gaps pose another major hurdle. Achieving the target of 500 GW of non-fossil fuel capacity by 2030 will require a substantial increase in annual clean energy investments, nearly doubling current levels. Addressing these challenges through policy reforms, technological advancements, and financial incentives will be essential in ensuring a smooth and sustainable transition to a renewable-powered future.
Opportunities lie in leveraging AI-powered predictive analytics, blockchain for energy trading, and advanced energy storage solutions to bridge these gaps and drive India’s clean energy revolution:
1. Enhancing Energy Forecasting: AI-driven models leverage historical and real-time data to predict solar and wind energy output, enabling better planning and reducing reliance on fossil fuel-based backup power.
2. Optimizing Grid Management: AI helps balance energy supply and demand by providing insights into peak consumption periods and identifying grid bottlenecks.
3. Storage and Load Optimization: Predictive analytics assist in efficiently utilizing battery storage systems, ensuring optimal charging and discharging cycles for renewable energy reserves.
Several organizations worldwide are already leveraging AI and data-driven solutions to tackle these challenges, demonstrating the transformative impact of technology in the energy sector. Companies at the forefront of this shift are using advanced forecasting and grid optimization tools to enhance efficiency and sustainability.
How can we effectively benefit from AI and data-driven energy solutions?
AI-driven forecasting minimizes energy waste, optimizes grid management, and extends asset lifespan, leading to lower electricity costs and reduced maintenance expenses. By tracking pre- and post-implementation energy costs and downtime reductions, businesses can gain clear insights into usage. Additionally, AI helps organizations meet Renewable Energy Purchase Obligations (RPOs), reduce carbon emissions, and align with ESG goals—enhancing both regulatory compliance and brand value. Beyond sustainability, AI-powered solutions enable smarter energy procurement, predictive maintenance, and the monetization of surplus energy, all of which contribute to financial viability.
One such example is Repsol, which relies on SAS Energy Forecasting, which plays a crucial role in optimizing energy use across its three main business lines: energy management, analytics, and predictions. The SAS solution enhances Repsol’s custom app, Vivit, designed for its residential electricity and natural gas customers, providing detailed insights that drive informed decision-making for product planning and development.
In India, SAS is collaborating with one of the leading private discoms to help predict energy demand and maximize procurement of power from renewable resources. We’re also exploring how we can help government entities develop an advanced forecasting solution that analyzes solar energy output, optimizes grid management, and predicts energy demand and supply. This initiative aims to compare renewable and non-renewable energy insights, empowering decision-makers with data-driven strategies to enhance energy efficiency and reduce reliance on fossil fuels.
By harnessing Data and AI, alongside strategic government initiatives, India can accelerate its clean energy transition, optimize grid management, and pave the way for a sustainable future. For Indian business leaders, the time to act is now – leveraging data-driven insights can not only enhance profitability but also contribute to the nation’s long-term energy security. Collaborative efforts between policymakers, businesses, and technology providers will be instrumental in ensuring that the power of data fuels our planet’s energy needs efficiently and sustainably.