look news india
Mumbai: India needs an investment of $385 billion to achieve its target of 500 GW of renewable energy, although coal will remain the main source of power generation for the next decade, according to a Moody's Ratings report.
It aims to accelerate the addition of 50 GW per year in power generation capacity through non-polluting energy sources to achieve the target of 500 GW of renewable energy. India has missed the target of 175 GW by 2022.
India can meet its target by adding an additional 44 gigawatts per year, requiring it to spend $190 billion to $215 billion on capacity additions over the next six to seven years, Moody's said, adding that it will need to invest $150 billion to $170 billion in transportation and distribution infrastructure.
Most of the announced projects will increase the financial risk of renewable energy companies, whose project ratings will remain negative for the next two to three years.
As a result of the strong support of the Government of India, the share of renewable energy in the country's power generation capacity is set to increase to 43 percent by the end of the financial year 2023-24. The support has attracted investments in the power sector.
Moody's also said that with continued policy support, significant progress can be made towards achieving the 2030 goals.
The agency's report also said that despite the steady growth in renewable energy, especially solar energy, coal's role in power generation in the country will continue for the next eight to ten years.
Over the next five to six years, India will add 50 to 60 giga watts to its coal-based power capacity, as power demand is expected to grow at five to six per cent annually during this period.
