Construction Industry News
The government has set a target to increase non-fossil energy capacity to 500 GW by 2030 and provide half of its electricity supply According to a new report from research firm BloombergNEF (BNEF), India will need $223 billion in investment to meet its target of wind and solar installations by 2030.
The government has set a target to increase non-fossil energy capacity to 500 GW by 2030. It wants non-fossil energy sources to provide half of its electricity supply by 2030.
“To achieve this goal, India needs to massively scale its renewable energy financing,” the report said, adding that $223 billion is needed over the next eight years to meet its solar and wind capacity targets.
At COP26 in November 2021, Prime Minister Narendra Modi announced that India plans to cut emissions intensity by more than 45% below 2005 levels by 2030. He also announced a net-zero by 2070.
The report, Financing India's 2030 Renewables Ambition, published in partnership with the Power Foundation of India, found that business commitments from Indian companies could help India achieve 86 percent of its 2030 goals of building 500 GW of cumulative non-fossil power generation capacity, according to a statement from BNEF.
By 2021, 165 GW of carbon-free generation had already been installed in the country.
The Central Electricity Authority predicts that the country's coal dependency will fall from 53% of installed capacity in 2021 to 33% in 2030, with solar and wind power together making up 51% by then, up from 23% in 2021.
Shantanu Jaiswal, lead author of the report and head of India research at BloombergNEF, said: “To date, renewable energy growth in India has been funded by a diverse range of financiers. Debt and equity structures have evolved as the market grew and new risks emerged. India's ambitious renewable energy targets now require further scaling up of financing with new instruments and lessons learned from other global markets."
Still, India's scaling up of renewable energy faces regulatory, project and funding risks, with PPA renegotiations, land purchase and payment delays being cited as key risks by industry stakeholders, surveyed by BloombergNEF.
In the short term, rising interest rates, a depreciating rupee and high inflation pose challenges for financing renewables.
“In order to scale funding to meet the 2030 targets, Independent Power Producers need to tap into new or underutilized sources of capital, which could include revolving construction debt, investment infrastructure trusts and financing from private investors, insurance companies and pension funds.
“Higher funding requirements also require measures that can increase the availability of funding, from reducing risks for renewable projects to offering contract terms that are more comfortable for investors,” noted Rohit Gadre, an analyst in BNEF's Indian research team.
34973
69946
4743
9486
1422
2614
38004
76008
39079
78199
31169
62399
![Epyz Solar Flood Lights 2-in-1 Colour with Remote, 60W - 11000mAh Batteries, 81 LED Waterproof ,Pack of 1, Warm Yellow & Cold White Light ] ,Plastic](https://m.media-amazon.com/images/I/71C+hry2jeL._SX425_.jpg "Epyz Solar Flood Lights 2-in-1 Colour with Remote, 60W - 11000mAh Batteries, 81 LED Waterproof ,Pack of 1, Warm Yellow & Cold White Light ] ,Plastic")
4937
5999
869
1616
30259
60499
34917
69834
178
992
31779
63599
46899
93799
799
1499
