India needs $223 billion to meet 500 GW renewable energy target by 2030


Strong points :

  • According to a BNEF report, India will need $223 billion in investments to meet the target of wind and solar capacity installations of up to 500 GW by 2030.
  • The Central Electricity Authority (CEA) said India’s dependence on coal could drop from 53% of installed capacity last year to 33% in 2030.
  • At the same time, solar and wind will together account for 51% of this capacity, a sharp increase from 23% in 2021.

According to findings revealed in a new report by BloombergNEF (BNEF) at a seminar in New Delhi on June 22, India will need $223 billion in investment to meet the target of wind capacity installations and solar up to 500 GW by 2030.

A look at the numbers

In a telling trend, the country already managed to install 165 GW of zero-carbon generation last year. In an illuminating forecast, the Central Electricity Authority (CEA) said India’s reliance on coal could rise from 53% of installed capacity last year to 33% in 2030. time, solar and wind will together account for 51 percent. cent of this capacity, a significant increase from 23% in 2021.

Released in association with the Power Foundation of India, the report entitled “Financing India’s 2030 Renewables Ambition”, mentioned that Indian companies could be of great help in reaching 86% of its 2030 targets which involve reaching 500 GW of cumulative production of renewable energy. ability. It may be recalled here that RIL Chairman and Billionaire Mukesh Ambani said in February this year that advancements in technology would make India a new world energy leader, exporting $50 billion of clean energy in two decades.

From the experts

Addressing the galaxy of business leaders at BNEF, Kapil Maheshwari, President of New Energy at Reliance, said, “As part of the push, the company also plans to bid for all production-related incentives that the government could offer to encourage the technology”.

Moderating a session, Shantanu Jaiswal, lead author of the report and head of India research at BloombergNEF, said: “To date, the growth of renewable energy in India has been funded by a diverse set of financiers. Debt and equity structures have evolved as the market has developed and new risks have emerged. India’s ambitious renewable energy targets now require a further increase in financing with new instruments and lessons learned from other global markets.”

The report says $223 billion is needed over the next eight years to meet solar and wind capacity targets. It is worth recalling that Prime Minister Narendra Modi announced at COP26 in November 2021 that India plans to reduce the emissions intensity of the economy by more than 45% by 2030 below 2005 levels. He had also announced a goal of net zero by 2070.

“Increasing funding to meet 2030 targets requires independent power producers to tap into new or underutilized sources of capital. These could include revolving construction debt, investment infrastructure trusts and funding from retail investors, insurance companies and pension funds. Higher financing needs also require measures that can increase the availability of financing, such as de-risking revolving projects to provide contractual terms that provide greater comfort to investors,” Rohit Gadre, analyst at the BNEF’s Indian research team paved the way for clean projects. energy goals that India seeks to achieve in 2030.


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