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India wants non-fossil fuel power sources to provide half of its electricity supply by 2030. To achieve this target, the country needs to massively scale up funding for renewables and to meet its goals by 2030 investment of $223 billion is needed, according to a new report by research company BloombergNEF (BNEF). At COP26 in November 2021, Prime Minister Narendra Modi had announced India's plans to reduce emission intensity by more than 45% by 2030 below 2005 levels, and called out five decarbonisation targets, terming them ‘panchamrit’(nectar distilled from five ingredients; in this case, the five promises).

To sum-up the five nectars Prime Minister Narendra Modi had stated, "First- India will reach its non-fossil energy capacity to 500 GW by 2030. Second- India will meet 50 percent of its energy requirements from renewable energy by 2030. Third- India will reduce the total projected carbon emissions by one billion tonnes from now onwards till 2030. Fourth- By 2030, India will reduce the carbon intensity of its economy by less than 45 percent. And fifth- by the year 2070, India will achieve the target of Net-Zero. These panchamrits will be an unprecedented contribution of India to climate action."

India's current power capacity (2021) versus 2030 forecast among various categories
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India's current power capacity (2021) versus 2030 forecast among various categories

According to India's Central Electricity Authority forecast, reliance on coal will drop from 53 percent of installed capacity in 2021 to 33 percent in 2030, whereas solar and wind together make up 51 percent by then, up from 23 percent in 2021. India’s power generation capacity grew by 118% between 2011 and 2021. Renewables share of capacity reached 37% in 2021 from 31% in 2012. Solar power has expanded the fastest reaching 60GW in 2021 from less

than 1GW in 2011.

The report “Financing India’s 2030 Renewables Ambition" has been published in association with the Power Foundation of India. India has already invested around $ 75 billion in renewable energy in the past eight years between 2014 to 2021 to install 165 GW of renewable energy which now needs to treble to $ 223 billion to meet India’s 500 GW goal by 2030, the report said.

● $363 billion of investments would be needed in building new power projects and batteries between 2020 and 2029 to meet the CEA’s 2030 optimal capacity mix.

● Out of this, from 2020 to 2029: $241 billion would be needed to build solar and wind power plants and another $26 billion to build battery storage projects.

● In 2020 and 2021, new-build wind and solar together secured $17.4 billion of asset financing. So, an average of $27.9 billion is required annually from 2022 to 2029 to meet the 2030 targets.

The report concludes that corporate commitments from Indian companies could help India achieve 86 per cent of its 2030 goals of building 500 GW of cumulative non-fossil power generation capacity. Several big corporates are contributing in India's path to achieve 2030 climate goals with the top-10 independent power producers have 33GW renewables commissioned and 46GW in the pipeline

Reliance is leading the pack with objective to invest $10bn to create a renewable energy ecosystem by 2024 and would have built and enabled100GW solar systems. Adani Group aims to be world's largest solar power company by 2025 and world's largest renewable power company by 2030. Tata Power plans to build 25 GW green energy portfolio, JSW to add 15GW renewables with $10bn plan by 2030 and NTPC targets 60GW renewables by 2032.

India’s top corporates are stepping up to support the 2030 targets
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India’s top corporates are stepping up to support the 2030 targets

To meet its climate goals of wind and solar capacity installations by 2030 India needs to invest 

India will need to invest $223 billion in order to meet its goal of wind and solar capacity installations by 2030, according to a new report by research company BloombergNEF (BNEF).

The goal is part of the five decarbonisation targets that had been announced by Indian Prime Minister Narendra Modi at COP26 in November 2021. Additionally, India aims to meet 50 percent of its electricity demand from renewable energy, thereby making renewable energy especially crucial in meeting the country’s 2030 and 2070 climate goals.

The report “Financing India’s 2030 Renewables Ambition", published in association with the Power Foundation of India, finds that corporate 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. By 2021 165 GW of zero-carbon generation had already been installed in the country. India's Central Electricity Authority forecasts the country's reliance on coal to drop from 53 percent of installed capacity in 2021 to 33 percent in 2030, whereas solar and wind together make up 51 percent by then, up from 23 percent in 2021.

India has consistently ranked among the leading emerging markets covered by Climatescope, BNEF’s flagship report analysing market attractiveness for energy transition investment. In 2021, India ranked first in the power category among 107 emerging markets. Transparent market mechanisms, supportive policies and ambitious government targets have attracted many domestic and international players to India’s renewables market.

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