India will require $190 billion-$215 billion investment over the next seven years to achieve target of 500 GW of renewable energy capacity by 2030, a Moody’s report said.
India requires another $150 billion-$170 billion investment for electricity transmission and distribution as well as energy storage.
Government policies and stable regulatory frameworks will support credit quality.
The pipeline of projects will keep the financial leverage of renewable power companies rated by Moody’s high over the next 2-3 years – a credit negative – but the leverage of government-related issuers will remain moderate over the same period, given their relatively strong balance sheets.
Strong policy support has helped India increase the share of renewable energy in its power capacity mix to around 43 percent in fiscal 2023 and fiscal 2024. Continued policy support will help the country make significant progress toward its 2030 transition targets and 2070 net-zero goals.
“We expect the strong growth in India’s renewable energy capacity to continue, although coal will remain a major source of electricity generation over the next 8-10 years,” said Abhishek Tyagi, a Vice President and Senior Credit Officer with Moody’s.
Prahlad Joshi, Union Minister for New and Renewable Energy, said on Tuesday the government is committed to advancing renewable energy initiatives to meet the country’s rising energy demands and environmental goals.