India Needs Annual Investments of INR 3 Trillion to Achieve 440GW RE Capacity by 2030

As per ICRA Limited, in order to achieve an installed renewable energy capacity of 440 GW by 2030, India will need investments of more than INR 3 lakh crore for the next five-six years.

Sep 23, 2024

India will need annual investments exceeding INR 3 trillion to achieve an installed renewable energy capacity of 440 GW by 2030, revealed ICRA Limited, an independent investment information and credit rating agency.

Speaking at a media roundtable recently, Vice President & Co-Group Head – Corporate Ratings at ICRA, Mr. Vikram V, predicted that the country was on track to hit 440 GW of installed renewable capacity within the next seven years. He emphasized the essential need for consistent and large-scale investments to make this vision a reality.

Mr. Girish Kumar Kadam, Group Head of Corporate Sector Ratings at ICRA, said that achieving this target would require incremental investments of at least INR 3 trillion annually for the next five to six years. Achieving the RE capacity of more than 400 GW was also important to meet the Renewable Purchase Obligation (RPO) target of 43 percent by 2030, noted Mr. Kadam.

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He said the evolving landscape of the renewable sector presented both risks and substantial opportunities for investors. The sector’s growth potential was enormous, however, the government must address these pressing issues expeditiously to maintain momentum.

The two ICRA experts further outlined the growth trajectory of India’s electric vehicle (EV) market. They estimated that by FY2030, electric two-wheelers would account for 25 percent of new vehicle sales, with electric three-wheelers and buses constituting 40 percent and 30 percent, respectively. 

The EV sector was anticipated to attract nearly INR 25,000 crore in investments towards charging infrastructure and the localisation of EV components over the next three to four years, they added.

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The ratings agency said as the country accelerated its transition to green energy, the renewable and EV sectors were poised to become major investment destinations. The ambitious target was part of the country’s broader energy transition agenda, underscoring the growing importance of clean energy solutions in India’s power mix, it added.