An investment of over Rs 3 trillion every year is needed in the renewable energy sector to take India’s installed green capacity to 440 gigawatts, Icra experts said on Friday.
“We expect India to have an installed capacity of 440 gigawatts of renewable energy by 2030,” Vikram V, Vice President and Co-Head, Corporate Ratings Group, ICRA Ltd, said in a media roundtable.
The estimated capacity would require an incremental investment of at least Rs 3 trillion 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 power purchase obligation (RPO) target of 43 per cent by 2030, renewable energy capacity would need to more than double to 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 sector’s growth potential is immense, provided the government addresses these pressing issues quickly, 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.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 20, 2024 | 22:36 IS
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