With unflagging policy support, India can achieve its renewable energy expansion target of 500GW by 2030. But getting there and beyond will call for massive investments, according to Moody's Ratings
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In its report released on June 6, Moody's Ratings has observed that to achieve its 2030 target of 500 gigawatts (GW) in renewable energy, India would have to invest $385. Second, coal will remain a key source of electricity generation over the next decade. A major greenhouse gas emitter, India has vowed to add 50GW of renewable energy capacity every year to achieve its 500GW target in a decade. However, the country missed its goal of attaining 175 GW by 2022.
According to a Reuters report, however, Moody's has estimated that an annual capacity addition of around 44 GW will help India get up to its target. Expansion on such a scale will call for a minimum investment of $190 just for building the capacity and another $ 170 billion for transmission and distribution over the next six to seven years, adding up to a staggering $ 360 billion.
Buoyed by strong policy support, the renewable energy component in India's total installed energy mix reached 43% in fiscal 2023-24, attracting substantial private sector investments.
Adani Group, through Adani Green Energy, proposes to churn out 45 GW of renewable power by 2030 in its resolve to become the country's first integrated renewable energy player.
India is poised to make significant progress towards its 2030 transition goals and its 2070 net zero ambition with unstinted policy support. However, in the run-up to those milestones, coal will remain the mainstay of the country's energy expansion, with capacity based on this fossil fuel projected to swell by 40GW-50GW over the next five to six years to cater to the power demand, which is likely to grow by 5%-6% annually over this period.
