India’s Renewable Energy Goals: $200 Billion Investment Needed by 2030
India is set to require around USD 200 billion in investments to build renewable energy (RE) generating assets by 2030, according to a report by Nomura. This estimate aligns with India’s renewable energy targets. The report forecasts a 7% annual growth in energy demand from FY24 to FY30, driven by data center expansion, electric vehicle (EV) growth, and green hydrogen advancements.
India’s power capacity is expected to increase from 450.8 GW to 777.1 GW by FY30, with a 10% annual growth rate. In FY24, India auctioned 40 GW of RE capacity, but to achieve the 500 GW target by 2030, the pace must increase to 60 GW annually. The industry is well-positioned to meet this demand, supported by favorable solar and wind prices, government policies, and commercial sector initiatives.
As green hydrogen becomes cost-competitive, renewable energy demand may exceed current projections. India’s hydrogen demand is currently 6 million tons, mainly from refineries, fertilizers, and steel. EVs are expected to require 3.4 terawatt-hours of electricity by FY25, with a significant increase anticipated as the government targets 100% EV sales by 2030.
Doubts Revealed
Renewable Energy -: Renewable energy comes from natural sources like the sun, wind, and water, which can be used again and again. It doesn’t run out like coal or oil.
USD 200 billion -: USD 200 billion is a huge amount of money, about 16 lakh crore rupees. It’s needed to build things like solar panels and wind turbines to make clean energy.
Nomura report -: Nomura is a company that studies and gives advice about money and business. They made a report saying how much money India needs for renewable energy.
Energy demand -: Energy demand means how much electricity people and businesses need to use. It’s like how much water you need to fill a bucket.
Data centers -: Data centers are big buildings with lots of computers that store and process information, like the internet and apps you use.
EVs -: EVs are electric vehicles, like cars and bikes that run on electricity instead of petrol or diesel.
Green hydrogen -: Green hydrogen is a clean fuel made using renewable energy. It can be used to power things without causing pollution.
Power capacity -: Power capacity is the total amount of electricity that can be produced at one time. It’s like how much water a tank can hold.
GW -: GW stands for gigawatt, a unit to measure electricity. One gigawatt is a billion watts, which is a lot of power!
Annual auctions -: Annual auctions are events where companies bid to build renewable energy projects. It’s like a competition to see who can do it best and cheapest.
Supportive policies -: Supportive policies are rules made by the government to help businesses grow, like giving them money or making it easier to build things.
Competitive prices -: Competitive prices mean the cost of something is low enough to attract buyers, like when you find a good deal at a store.