Rs 3 Lakh Crore Needed Annually For India's Renewable Energy Goal

An investment of over Rs 3 lakh crore is needed every year in the renewable energy sector to take India's installed green capacity to 440 gigawatts, ICRA experts said. 

"We expect India to have 440 gigawatts of installed capacity of renewable energy by 2030," Vikram V, Vice President & Co-Group Head, Corporate Ratings, ICRA Ltd., said at a media roundtable. 

The estimated capacity would require incremental investment of at least Rs 3 lakh crore every year over the next five to six years, said Girish Kumar Kadam, Group Head Corporate Sector Ratings at ICRA Ltd. 

He further said to meet the renewable purchase obligation (RPO) target of 43 percent by 2030, the renewable energy capacity should more than double to 440 GW from the current level of 200 GW. 

The government's target is to have 500 gigawatts of installed renewable energy capacity by 2030. 

Sharing his outlook for the RE sector, Kadam said India has made significant progress in renewable energy capacity addition 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 evolving landscape presents both risks and significant investment opportunities, especially as the demand for cleaner energy sources intensifies. The sector's growth potential is immense, provided the government addresses these pressing issues expeditiously, he said. 

In a presentation, ICRA experts said that by FY2030, electric two-wheelers will account for 25 percent of new vehicle sales, while electric three-wheelers and buses will constitute 40 percent and 30 percent, respectively. 

The EV sector is expected to attract substantial investments, with nearly Rs 25,000 crore anticipated to be poured into charging infrastructure and localisation of EV components over the next three to four years, they said.