India Needs $293 Billion in Renewable Energy Investments to Meet 2030 Targets

India needs $293B in renewable energy investments by 2030 to achieve ambitious targets. Collaboration between government, industry, and society is key to drive sustainable development and become a global leader in green energy.

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Rafia Tasleem
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India Needs $293 Billion in Renewable Energy Investments to Meet 2030 Targets

India Needs $293 Billion in Renewable Energy Investments to Meet 2030 Targets

India requires a staggering $293 billion in renewable energy investments between 2023 and 2030 to achieve its ambitious targets, according to recent reports. To maximize the impact on decarbonization, health, livelihoods, resilience, and social fabric, financiers must enable a multi-solving approach that goes beyond just funding clean energy projects.

Leveraging policy support and encouraging collaboration between the government, industry, academia, and civil society are seen as essential steps in bringing the common man into the fold of India's green energy transition. Experts emphasize the need to develop energy-saving technologies, improve public transportation, and implement eco-friendly waste management systems to complement the renewable energy push.

India has already made significant strides in its renewable energy journey, exceeding the goals set at the Paris Summit. The country now generates 40% of its power capacity from renewable sources, with installed non-fossil fuel capacity increasing by 39.6% in the last 8.5 years. As of March 2024, India's total non-fossil fuel capacity stands at more than 198.75 GW, accounting for about 45% of the country's total capacity.

Why this matters: India's ambitious renewable energy targets and the massive investments required have far-reaching implications for the country's economic growth, energy security, and global climate change mitigation efforts. The success of India's green energy transition could serve as a model for other developing nations looking to balance economic development with environmental sustainability.

The government has introduced various initiatives to support the renewable energy sector, such as the Production Linked Incentive (PLI) scheme in solar PV manufacturing. India aims to reduce the carbon intensity of its economy by less than 45% by 2030, achieve 50% of its cumulative electric power installed capacity from renewables, and reach net-zero carbon emissions by 2070. The country also targets producing 5 million tonnes of green hydrogen by 2030, backed by 125 GW of renewable energy capacity.

International collaborations and partnerships are seen as vital for driving the development and implementation of sustainable technologies in India. Sharing best practices, technology transfer, and joint research can help the country leapfrog to advanced sustainable solutions. A recent example is Apple's partnership with CleanMax, a leading renewable energy developer in India, to invest in a portfolio of six rooftop solar projects with a total capacity of 14.4MW.

The global market for sustainable finance is expected to grow from $3.6 trillion in 2021 to $23 trillion by 2031, presenting significant opportunities for India. Banks are increasingly embracing net-zero goals and sustainable banking practices for a, with the UN's Net Zero Banking Alliance having 138 member banks representing 41% of global banking assets. Indian banks have been supporting green finance programs, and some have secured notable ESG and social loans.

"India has set an enhanced target of 500 GW of non-fossil fuel-based energy by 2030, which is the world's largest expansion plan in renewable energy," a government official stated, highlighting the country's commitment to a greener future. With the right investments, policies, and collaborations, India is poised to become a global leader in renewable energy and sustainable development.

Key Takeaways

  • India needs $293B in renewable energy investments by 2030 to meet targets.
  • India generates 40% of its power from renewables, aiming for 50% by 2030.
  • India targets 5M tonnes of green hydrogen production and 125GW renewable capacity by 2030.
  • Sustainable finance market expected to grow from $3.6T in 2021 to $23T by 2031.
  • India's renewable energy transition could serve as a model for other developing nations.