India is expected to treble its capacity for renewable energy by 2030, but there will be financial challenges

 India is expected to treble its capacity for renewable energy by 2030, but there will be financial challenges

India is expected to treble its capacity for renewable energy by 2030, but there will be financial challenges

According to the International Energy Agency (IEA), in order to minimize the demand for fossil fuels and keep global warming to 1.5 degrees Celsius by the end of the century, the world must quadruple energy efficiency and treble its capacity for renewable energy by 2030. is going to be.

India is on course to treble its capacity for renewable energy by 2030, however there is a financial obstacle: Report

According to a research published on Wednesday by the international energy think group AMBER, India's 14th National Power Plan (NEP) is on pace to more than treble its renewable energy generation by 2030, but the nation would need to spend Rs 293 billion to get there. Require US dollars.

According to the International Energy Agency (IEA), in order to minimize the demand for fossil fuels and keep global warming to 1.5 degrees Celsius by the end of the century, the world must quadruple energy efficiency and treble its capacity for renewable energy by 2030. is going to be.

More than 60 nations now embrace the pledge to double energy efficiency and treble renewable energy, with the US, EU, and UAE leading the way. Under India's presidency, the G20 has endorsed doubling the capacity of renewable energy by 2030.

  The United Arab Emirates, which is hosting the UN climate conference this year, is in favor of a worldwide deal at COP28.

According to Amber's study, India needs an extra 101 billion US dollars (one billion is equal to 100 crore Indian rupees) in finance to increase its renewable energy capacity and get toward the IEA's suggested net-zero scenario. A worldwide route to attain net zero CO2 emissions by 2050 is outlined in the IEA's net zero emissions scenario by 2050, with advanced economies achieving net zero emissions ahead of others.

Reaching net zero in terms of climate change entails striking a balance between greenhouse gas emissions and absorption from the environment. According to the Amber research, India is already preparing to significantly expand its use of renewable energy, which will enable it to meet its goal of doubling its capacity for renewable energy.

But the nation will have to set even higher goals if it wants to adhere to the IEA's strategy and become "net-zero," meaning it creates no more greenhouse emissions than it eliminates. As.

This implies that by 2030, India would have to produce around 32% of its energy from solar energy and 12% from wind energy. India will need to install 9 GW of wind and 115 GW of solar capacity by 2030 in addition to the goals outlined in the NEP14 plan in order to accomplish this. By 2030, India's overall renewable energy capacity will rise to 448 GW from solar and 122 GW from wind.

By 2030, India wants to have built 500 GW of electricity capacity from non-fossil fuel sources. According to the analysis, the nation would need US$293 billion between 2023 and 2030 in order to reach its present goals for wind and solar energy.

To match the IEA net-zero trajectory, the nation will need to invest an extra US$101 billion to increase its capacity for renewable energy. The think tank emphasized problems including late payments and unfavorable laws and regulations that prevent investors from contributing the money required to meet these objectives.

According to the research, India does not yet have the investment and financing capacity necessary to meet the NEP14 objectives and the IEA net-zero scenario.

According to Nashwin Rodrigues, an India power policy analyst at Amber, India needs funding to increase its capacity in renewable energy, storage, and transmission in order to reach its NEP14 commitments, even in the face of investment uncertainties.

India's capacity to achieve the global net-zero route would depend on its ability to get much more funding at competitive rates, which will further improve the country's objectives in this regard.

In order to fulfill its increasing need for coal this decade, India must have access to this financing in order to avoid developing additional coal capacity.