The estimated capacity would require an incremental investment of at least Rs 3 lakh crore every year for the next five to six years, said Girish Kumar Kadam, head of the corporate sector ratings group at ICRA Ltd.
He further said that to meet the renewable energy purchase obligation (RPO) target of 43 percent by 2030, renewable energy capacity would need to more than double. 440 GW from the current level of 200 GW.
The government’s goal is to have 500 gigawatts of renewable energy capacity installed by 2030.
Sharing his outlook for the renewable energy sector, Kadam said India has made significant progress in adding renewable energy capacity with a strong policy focus, but factors such as energy storage, grid integration and fully integrated renewable energy equipment manufacturing pose challenges, given the increasing share of renewables in the energy mix.
The changing landscape presents significant investment opportunities and risks, especially as demand for cleaner energy sources intensifies. The growth potential of the sector is immense, provided the government addresses these pressing issues expeditiously, he said. In a presentation, ICRA experts said that by fiscal 2030, electric two-wheelers will account for 25 per cent of new vehicle sales, while electric three-wheelers and buses will constitute 40 per cent and 30 per cent, respectively.
The electric vehicle sector is expected to attract substantial investments, with nearly Rs 25,000 crore planned to be invested in charging infrastructure and localization of EV components over the next three to four years, they said.
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