Will India Secure $293Billion to Triple Green Energy Capacity by 2030?

India's 14th National Electricity Plan (NEP) is steering the nation toward a substantial increase in renewable energy capacity by 2030, aiming to triple its current levels. However, this transformative endeavor comes with a staggering price tag of USD 293 billion, as outlined by a report from the global energy think tank, Ember.

Global Support and India's Leadership

The International Energy Agency (IEA) echoes the need for a worldwide effort to triple renewable energy capacity and double energy efficiency by 2030. This push aims to reduce reliance on fossil fuels and curtail global warming to 1.5 degrees Celsius by the century's end, a commitment supported by over 60 countries led by the US, the European Union (EU), and the UAE.

Under India's presidency, the G20 nations have backed the target of tripling renewable energy capacity by 2030. Concurrently, the UAE, hosting the UN climate conference, advocates for a universal agreement on this at COP28.

Financial Hurdles and Required Investments

Ember's analysis highlights India's need for an additional USD 101 billion to expand its renewable energy capacity further, aligning with the IEA's proposed net-zero scenario. This scenario, aiming for global net zero CO2 emissions by 2050, necessitates advanced economies to achieve net-zero emissions sooner.

While India is already planning a significant surge in renewable energy, achieving the net-zero status proposed by the IEA demands even loftier ambitions. To match this trajectory, India must substantially increase its solar and wind energy generation, aiming for 32% from solar and 12% from wind by 2030.

India's Evolving Targets

To meet these elevated aspirations, India needs to add 115 GW of solar and 9 GW of wind power by 2030, on top of the NEP14 targets. This escalates the total renewable capacity to 448 GW of solar and 122 GW of wind by 2030, surpassing the current goal of 500 GW from non-fossil fuel sources by the same year.

Ember's report underscores challenges like payment delays and unfavorable regulations that dissuade investors from providing essential funding. To realize these objectives, India must secure significantly more financing at competitive rates and address these inhibiting factors to ensure its energy transition.