India aims to triple its renewable energy capacity by 2030, according to the 14th National Electricity Plan (NEP). A report from global energy think tank Ember highlights that achieving this goal requires a substantial investment of USD 293 billion. The International Energy Agency (IEA) advocates for a global effort to triple renewable energy and double energy efficiency by 2030 with support from over 60 countries including the US, EU and UAE.
Under India’s presidency, the G20 nations have endorsed the target of tripling renewable energy capacity by 2030. Additionally, the UAE hosting the UN climate conference, advocates for a global agreement on this at COP28. Ember’s analysis indicates that India needs an additional USD 101 billion to expand its renewable energy capacity and align with the IEA’s proposed net zero scenario.
The IEA’s Net Zero Emissions by 2050 Scenario outlines a global pathway to achieve net zero CO2 emissions by 2050 with advanced economies reaching net zero emissions ahead of others. To meet this India would need to generate around 32% of its energy from solar and 12% from wind by 2030, requiring an additional capacity of 115 GW of solar and 9 GW of wind on top of NEP14 plan targets. This would bring India’s total renewable capacity to 448 GW of solar and 122 GW of wind by 2030.
India’s current goal is to reach 500 GW of installed electricity capacity from non-fossil fuel sources by 2030. Between 2023 and 2030, the country requires USD 293 billion to meet its current goals for solar and wind power. However to align with the IEA net-zero pathway, an additional USD 101 billion is needed.
Ember emphasizes challenges such as payment delays and unfavorable rules and regulations that deter investors. Neshwin Rodrigues, Ember’s India Electricity Policy Analyst stresses the need for financing to build capacity in renewables, storage, and transmission, crucial for India to avoid constructing new coal capacity to meet rising demand in the coming decade. The financial requirements for both the NEP14 target and the IEA net-zero scenario surpass the current investment and funding capacities available in India according to the report.