The share of renewable energy in India’s power generation, including hydro, is expected to rise to 35 percent by FY30, up from 21 percent in FY24, according to a report released by ratings agency ICRA.
To meet the Renewable Purchase Obligation (RPO) target of 43.3 percent by FY30, the country will need to more than double its current renewable energy capacity of 200 GW. Achieving this will demand large-scale investments in energy storage and grid integration, while also tackling challenges such as land acquisition and transmission infrastructure.
While the nation has made impressive strides in renewable energy capacity due to a robust policy focus, obstacles like energy storage and fully integrated renewable energy equipment manufacturing remain significant, especially as renewables form an increasing part of the energy mix.
Girishkumar Kadam, Senior Vice President and Group Head of Corporate Ratings at ICRA, emphasized that the evolving energy landscape presents both risks and massive investment opportunities, especially as the demand for cleaner energy sources grows. He urged the government to address these challenges swiftly to unlock the sector’s full growth potential.
The government aims to achieve 50 percent of its installed power capacity from non-fossil fuel sources by 2030, showing its strong commitment to a greener energy future.
The report highlighted the electric vehicle (EV) sector’s potential, forecasting that electric two-wheelers will make up 25 percent of new vehicle sales, while electric three-wheelers and buses will account for 40 percent and 30 percent, respectively, by FY30. The EV industry is expected to attract investments of around Rs 25,000 crore in charging infrastructure and EV component localization over the next three to four years.
Key challenges facing the EV transition include developing a robust charging infrastructure, advancing battery technology, and ensuring supply chain resilience, according to the report.