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ICRA, an Indian credit rating agency, says renewable energy will account for 35% of India’s energy mix by 2030 as coal drops to 59%.
ICRA said that Indias share of renewables, including hydrooiwer, will rise to 35% of its power generation mix by fiscal year 2029-30, up from 21% in fiscal 2024. Coal’s share is expected to fall to 59% from 75% in fiscal 2024, with gas and nuclear power contributing the rest.
The Indian government has committed to having 50% of its installed power capacity come from non-fossil fuel sources by 2030. The government has also set a yearly trajectory for renewable purchase obligations (RPOs), which include energy storage requirements through 2030. Under this plan, electricity distribution companies (discoms) in each state must meet a minimum share of electricity purchases from renewable sources, increasing from 24.3% in 2023 to 43.3% by 2030.
These RPOs are designed to drive renewable energy consumption in India and help meet the government’s climate goals, aiming for 50% non-fossil fuel-based power capacity by 2030.
ICRA said that reaching the 43.3% RPO target by fiscal 2030 will require more than doubling India’s current renewable capacity, from about 200 GW to 441 GW, which will require major investments in energy storage, grid integration, and overcoming challenges like land acquisition and transmission infrastructure.
“India has made significant progress in renewable energy capacity addition with a strong policy focus, but factors such as energy storage, grid integration, and fully integrated renewable energy equipment manufacturing pose challenges, given the increasing share of renewables in the energy mix,” said Girishkumar Kadam, senior vice president ajd group head of corporate ratings at ICRA. “The evolving landscape presents both risks and significant investment opportunities, especially as the demand for cleaner energy sources intensifies. The sector’s growth potential is immense, provided the government addresses these pressing issues expeditiously.”
ICRA said that by fiscal 2030, electric two-wheelers will make up 25% of new vehicle sales in India, while electric three-wheelers and buses will account for 40% and 30%, respectively. It said it expects the electric-vehicle sector to attract significant investments.
ICRA said that charging infrastructure, battery technology, and supply chain resilience will be essential for a successful transition to sustainable transportation.
The EV charging network is gradually improving, with ICRA forecasting the number of public charging stations in India to rise to 45,000 to 50,000 by the end of 2025, up from 19,800 in 2023. |
