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    Home > Chemicals Industry > International Chemical > India's renewable energy investment gap is as high as $700 billion by 2030

    India's renewable energy investment gap is as high as $700 billion by 2030

    • Last Update: 2023-01-02
    • Source: Internet
    • Author: User
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    According to the Institute for Energy Economics and Financial Analysis (IEEFA), India's renewable energy sector needs $500 billion to $700 billion in new investments by 2030 to meet its ambitious target
    of 450 gigawatts (GW) capacity.

    "Smaller regional developers will also need domestic funding
    .
    India must release liquidity in its domestic banking system as soon as possible to put India's renewable energy ambitions on track," the research firm mentioned
    in its report.

    The report highlighted the financial constraints faced by renewable energy developers, adding that sovereign risks, policy risks, irregular payments and India's stranded assets in thermal power all stifled financing for the sector
    .

    India's transmission capacity goes hand in hand with renewable capacity between FY2014-15 and FY2017-18, with an average annual increase of 25,000 km
    .
    But for FY 2019-20, only 10,625 km of new transmission capacity
    is expected.
    The recent slowdown in the growth of renewable energy generation appears to have reduced the urgency to build new transmission capacity
    .

    India's renewable energy generation is expected to grow by an average of 20 gigawatts (GW) to 25 GW, in line with
    the target of 175 GW by March 2022.
    However, according to the research firm, less than 10GW
    of new grid-connected renewable energy was added nationwide in FY 2018-19.

    It added: "Generation generation in FY2019-20 is expected to grow to 12 GW to 13 GW, which is a year-on-year increase but still well below target
    .

    To improve liquidity in the renewable energy sector, IEEFA suggests that domestic solar manufacturing should
    be supported through offtake guarantees, better solar power tax caps and exports.

    According to the Institute for Energy Economics and Financial Analysis (IEEFA), India's renewable energy sector needs $500 billion to $700 billion in new investments by 2030 to meet its ambitious target
    of 450 gigawatts (GW) capacity.

    renewable energy

    "Smaller regional developers will also need domestic funding
    .
    India must release liquidity in its domestic banking system as soon as possible to put India's renewable energy ambitions on track," the research firm mentioned
    in its report.

    The report highlighted the financial constraints faced by renewable energy developers, adding that sovereign risks, policy risks, irregular payments and India's stranded assets in thermal power all stifled financing for the sector
    .

    India's transmission capacity goes hand in hand with renewable capacity between FY2014-15 and FY2017-18, with an average annual increase of 25,000 km
    .
    But for FY 2019-20, only 10,625 km of new transmission capacity
    is expected.
    The recent slowdown in the growth of renewable energy generation appears to have reduced the urgency to build new transmission capacity
    .

    India's renewable energy generation is expected to grow by an average of 20 gigawatts (GW) to 25 GW, in line with
    the target of 175 GW by March 2022.
    However, according to the research firm, less than 10GW
    of new grid-connected renewable energy was added nationwide in FY 2018-19.

    It added: "Generation generation in FY2019-20 is expected to grow to 12 GW to 13 GW, which is a year-on-year increase but still well below target
    .

    To improve liquidity in the renewable energy sector, IEEFA suggests that domestic solar manufacturing should
    be supported through offtake guarantees, better solar power tax caps and exports.

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