India requires $540 billion by 2029 to achieve renewable targets: S&P

S&P Global Ratings stated on Thursday that India needs an investment of USD 540 billion by 2029 to achieve its ambitious goal of electricity generation from renewable sources. This comes at a time when the private sector-led energy transition is entering a new stage.

By 2070, the government wants to have net-zero emissions in India. 500 gigawatts (GW) of non-fossil electrical capacity, half of the energy from renewable sources, and a decrease in emissions are the actual goals.

“Meeting India’s renewable target of 500 GW by 2030 requires more than 40 GW of new capacity additions annually (compared to 10-15 GW actual),” revealed PTI while quoting the report.

S&P Global Ratings stated in its report titled “Asia-Different Pacific’s Pathways To Energy Transition” that while coal usage is increasing and new coal plants are being built, the addition of renewable energy capacity in India is outpacing that of coal due to demand growth and intermittent power supply issues.

According to the report, private sector investments will drive the energy transition while policies will foster an enabling environment. It also stated that investments totaling USD 540 billion are needed between 2020 and 2029 to reach India’s renewables target.

Batteries and renewable energy will each get 50% of these investments, with grid reinforcement receiving another 35%.

According to the report, “public sector utilities will probably lead grid investments while the private sector will likely dominate generation spending.”

Also Read – Net zero will be an economic, business and people transition!