India to spend up to $385 billion to meet renewable energy target.
According to Moody’s Ratings, India will have to invest as much as $385 billion to meet its target of 500 gigawatts (GW) of renewable energy by 2030, but coal will remain a key source of electricity generation for the next decade.
India said it aims to ramp up non-fossil fuel capacity set by 50 GW each year to help meet its 500 GW target; Moody’s, however, estimates an annual capacity addition of around 44 GW will help achieve that target.
For that, India will have to spend $190 billion to $215 billion on capacity over the next six to seven years and another $150 billion to $170 billion for transmission and distribution.
India’s strong policy support has boosted the renewable energy share to around 43% in its power capacity mix in fiscal 2023-24, attracting private sector investments.
However, despite the steady growth in renewable energy, most of which will likely be solar power, Moody’s expects coal will play a significant role in electricity generation for the next eight to ten years.
