India requires $540-bn investment by 2029 to meet renewable targets: S&P

New Delhi, March 30

India needs $540 billion of investment between 2020 and 2029 to meet its ambitious targets for electricity generation from renewable sources, S&P Global Ratings said on Thursday as it saw private sector-led energy transition entering a new phase.

India is targeting to cut its emissions to net zero by 2070. In the transition to that, it is targeting 500 gigawatts (GW) of non-fossil electricity capacity, half of the energy from renewables, a reduction of emissions by one billion tonne and an emissions intensity of the GDP by 45% by 2030.

“Meeting India’s renewables target of 500 GW by 2030 requires more than 40 GW of new capacity additions annually (compared to 10-15 GW actual),” it said.

In its report ‘Asia-Pacific’s Different Pathways To Energy Transition’, S&P Global Ratings said the addition of renewables capacity in India is outpacing coal, but demand growth and intermittency issues are leading to greater coal usage and new coal plants.

“Policies are creating an enabling environment while private sector investments will lead the energy transition,” it said, adding investments of $540 billion are required from 2020 to 2029 to meet India’s renewables target.

Half of these investments will be in renewables and batteries, and another third in strengthening the grid.

“Private sector will lead generation capex while public sector utilities will likely lead grid investments,” it said. “Domestic long-term bank funding is available against projects and cash flows.” There is, however, limited appetite for unsecured holding company funding.

India is the world’s fourth biggest emitter of carbon dioxide after China, the US and the EU. But its emissions per capita are much lower than other major world economies. — PTI

Private sector to lead energy transition

• India is targeting to cut its emissions to net zero by 2070. In the transition to that, it is targeting 500 GW of non-fossil electricity capacity, half of the energy from renewables, a reduction of emissions by one billion tonne and an emissions intensity of the GDP by 45% by 2030
• Meeting India’s renewables target of 500 GW by 2030 requires more than 40 GW of new capacity additions
• Policies are creating an enabling environment while private sector investments will lead the energy transition