In a press release, ICRA estimated India’s renewable energy generation capacity growth at 16 GW for FY23. About 63GW of renewable energy capacity is under various construction phases. The installed power capacity is expected to reach 66 per cent by 2030.
Growth prospects robust with India’s commitment to reduce emissions and meet the 50 per cent energy requirement from renewable sources by 2030. According to ICRA, the investment required is a hefty amount ranging 450-500 billion USD for target achievement.
This green push will help India meet the climate commitment made at COP 26 by prime minister Narendra Modi. COP 26 was held in 2021, 1 year delayed due to COVID-19 pandemic in Glasgow, UK. Prime Minister pledged to increase country’s non-fossil fuel power generation capacity to 500GW and meet 50 per cent of its requirement from renewable sources by 2030.
India has achieved its nationally determined targets. In November 2021, India achieved the installation capacity of 157.32 GW. Of this, solar, wind and hydropower account for 48.55 GW, 40.03 GW and 51.34 GW, respectively. India’s nuclear energy-based installed electricity capacity stands at 6.78 GW.
ICRA expects the RE capacity addition to increase from 7.4 GW reported in FY2021 to 12.5 GW in FY2022 and further to 16.0 GW in FY2023. The government recently cleared a Rs 12,031 crore plan to setup infrastructure to transmit electricity from renewable energy projects as it seeks to boost output from green sources and meet half of the nations energy requirement from them by 2030.