India Requires Over Rs 3 Trillion Annually to Achieve 440 GW Renewable Energy Target by 2030: ICRA

New Delhi, Sep 21 (KNN) In a significant push towards sustainable energy, India will need annual investments exceeding Rs 3 trillion to achieve an installed renewable energy capacity of 440 gigawatts (GW) by 2030, experts from ICRA Ltd. highlighted on Friday. 

The ambitious target, part of the country’s broader energy transition agenda, underscores the growing importance of clean energy solutions in India's power mix.

Speaking at a media roundtable, Vikram V, Vice President & Co-Group Head - Corporate Ratings at ICRA, projected that India is on track to hit 440 GW of installed renewable capacity within the next seven years. 

He emphasised the essential need for consistent, large-scale investments to make this vision a reality.

Girish Kumar Kadam, Group Head of Corporate Sector Ratings at ICRA, echoed these sentiments, stressing that achieving this target would require incremental investments of at least Rs 3 trillion annually for the next five to six years. 

"To meet the Renewable Purchase Obligation (RPO) target of 43 per cent by 2030, the renewable energy capacity must more than double from its current level of 200 GW," Kadam explained.

The Indian government has set an even more ambitious target of 500 GW of installed renewable capacity by 2030, highlighting the importance of scaling up efforts. However, while India has made significant strides in expanding its renewable energy base, experts caution that challenges remain. 

These include energy storage solutions, grid integration, and the development of fully integrated renewable energy equipment manufacturing, which are critical as renewables take up a larger share of the energy mix.

"The evolving landscape of the renewable sector presents both risks and substantial opportunities for investors," Kadam noted. "The sector's growth potential is enormous, but the government must address these pressing issues expeditiously to maintain momentum."

In addition to renewable energy, ICRA’s experts outlined the growth trajectory of India's electric vehicle (EV) market. By FY2030, electric two-wheelers are expected to account for 25% of new vehicle sales, with electric three-wheelers and buses constituting 40% and 30%, respectively. 

The EV sector is anticipated to attract nearly Rs 25,000 crore in investments towards charging infrastructure and the localisation of EV components over the next three to four years.

As India accelerates its transition to green energy, the renewable and EV sectors are poised to become major investment destinations.

(KNN Bureau)