India to see $500-billion investment in renewables by 2030: IEEFA report

India is set to see investments of around $500 billion in the renewables sector by 2030 to meet its 450 GW target, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA).

“We estimate that striving for 450 gigawatts of renewable energy by 2030 would require deploying $500 billion of investment over the coming decade”, said Tim Buckley, Director Energy Finance Studies, South Asia, at the IEEFA.

The breakup of $500 billion is as follows:

  • $300 billion for wind and solar infrastructure
  • $50 billion on grid firming investments such as gas-peakers, hydro and batteries
  • $150 billion on expanding and modernizing transmission and distribution

The sources of capital range from private equity, global pensions funds and sovereign wealth funds, multinational development banks and Indian state-owned enterprises and power billionaires.

The report stated that the Indian renewables sector is increasingly dominated by the major independent power producers: ReNew Power, Greenko, Adani Green, Tata Power etc  and that each has invested strongly in building capacity in international debt and equity markets.
These renewable energy giants face growing competition from the likes of Vena Energy/Vector Green, O2 Power, Ayana Renewable Power, Torrent Power and Sprng Energy, as well as Government of India fossil fuel companies starting to rise to the decarbonization challenge such as NTPC and NLC, with Coal India Limited and Indian Railways to pivot on it.

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