India aims to reach a renewable energy capacity of 500 gigawatts (GW) by 2030, necessitating investments of $190 billion to $215 billion over the next seven years, according to a report by Moody’s released Wednesday.
An additional $150 billion to $170 billion will be needed for electricity transmission, distribution, and energy storage, the report noted.
Government policies and stable regulatory frameworks are expected to bolster credit quality, Moody's Vice President and Senior Credit Officer Abhishek Tyagi stated.
He highlighted that while the substantial project pipeline will keep financial leverage high for renewable power firms rated by Moody’s in the next 2-3 years — a credit negative — government-related issuers are likely to maintain moderate leverage due to their robust balance sheets.
India has made significant strides in increasing the share of renewable energy in its power capacity mix, achieving around 43% in fiscal 2023 and continuing into fiscal 2024.
Ongoing policy support is expected to drive substantial progress towards India’s 2030 renewable energy targets and its longer-term objective of achieving net-zero emissions by 2070, the report mentioned.
“We expect the strong growth in India’s renewable energy capacity to continue, although coal will remain a major source of electricity generation over the next 8-10 years,” Tyagi said.
Union Minister for New and Renewable Energy and Consumer Affairs, Food, and Public Distribution Pralhad Joshi affirmed the government’s commitment to advancing renewable energy initiatives to meet rising energy demands and environmental goals during a statement on Tuesday.
"Achieving self-reliance in fuel and energy by 2047 is our conviction," he said.
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