Over Rs 3 lakh cr needed each year to achieve 440 GW RE capacity by 2030: Icrara

New Delhi: Icra experts stated on Friday that an annual investment of more than Rs 3 lakh crore is required in the renewable energy sector to increase India's green capacity to 440 gigawatt. "We anticipate India to reach a renewable energy installed capacity of 440 gigawatts by 2030," Vikram V, Vice President & Co-Group Head - Corporate Ratings, ICRA Ltd mentioned during a media roundtable.

Girish Kumar Kadam, Group Head Corporate Sector Ratings at ICRA Ltd, stated that to meet the projected capacity, an additional investment of a minimum of Rs 3 lakh crore annually will be needed in the next five to six years. He also mentioned that in order to achieve the renewable purchase obligation (RPO) goal of 43 percent by 2030, the renewable energy capacity must increase to 440 GW, which is more than double the current level of 200 GW. By 2030, the government aims to achieve 500 gigawatts of renewable energy capacity installed.

Kadam shared his perspective on the RE sector, stating that India has advanced in adding renewable energy capacity due to focused policies. However, challenges such as energy storage and grid integration, along with manufacturing fully integrated renewable energy equipment, are obstacles as the renewable energy share in the energy mix continues to rise. As the need for cleaner energy sources increases, the changing environment provides potential investment opportunities along with risks. He stated that the growth potential of the sector is huge, as long as the government quickly deals with these urgent issues.

During a presentation, ICRA specialists stated that electric two-wheelers will represent 25 pc of new vehicle sales by FY2030, with electric three-wheelers and buses making up 40 pc and 30 pc, respectively. It is projected that the EV industry will receive significant funding, with around Rs 25,000 crore set to be invested in charging infrastructure and the localization of EV components in the next three to four years.