23 Sep 2024
India will require an annual investment of over Rs.3 lakh crore to reach 440 gigawatts (GW) of installed renewable energy capacity by 2030, according to experts from ICRA.
“India is expected to achieve 440 GW of renewable energy capacity by 2030,” said Vikram V, Vice President & Co-Group Head of Corporate Ratings at ICRA Ltd., during a recent media roundtable.
To meet the Renewable Purchase Obligation (RPO) target of 43% by 2030, India needs to more than double its current renewable energy capacity of 200 GW. Girish Kumar Kadam, Group Head of Corporate Sector Ratings at ICRA, stated that this goal would require a minimum investment of Rs.3 lakh crore each year over the next five to six years.
The Indian government aims for an even more ambitious target of 500 GW of renewable energy capacity by 2030.
Kadam also highlighted that while India has made substantial progress in expanding its renewable energy capacity, challenges such as energy storage, grid integration, and the development of fully-integrated renewable energy equipment manufacturing persist. These issues become more significant as the share of renewables in the energy mix grows.
Despite these obstacles, the renewable energy sector presents vast growth potential and significant investment opportunities, especially as demand for clean energy accelerates. To maximize this potential, Kadam emphasized the need for prompt government action to address these challenges.
ICRA's presentation also forecasted rapid growth in the electric vehicle (EV) market. By FY2030, electric two-wheelers are projected to account for 25% of new vehicle sales, while electric three-wheelers and buses are expected to represent 40% and 30%, respectively.
The EV sector is poised for major investments, with around Rs.25,000 crore likely to be invested in charging infrastructure and localization of EV components over the next three to four years.
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