New Delhi
A recent report reveals that the share of renewable energy, including hydro power, in the country’s electricity generation is expected to increase to 35% by FY30, up from 21% in FY24. The ratings agency ICRA highlights that to meet the renewable purchase obligation (RPO) target of 43.3% by FY30, the current renewable energy capacity of 200 GW must more than double.
This growth will require substantial investments in energy storage, grid integration, and overcoming challenges related to land acquisition and transmission systems. While the country has made significant strides in expanding renewable capacity through strong policies, issues such as energy storage and manufacturing of renewable equipment remain critical.
Girishkumar Kadam from ICRA noted that this changing landscape presents both risks and opportunities for investment, particularly as the demand for cleaner energy grows. The government aims for 50% of its power capacity to come from non-fossil fuel sources by 2030.
In the electric vehicle (EV) sector, electric two-wheelers are projected to make up 25% of new vehicle sales by FY30, with electric three-wheelers and buses accounting for 40% and 30%, respectively. The EV sector is expected to draw significant investment, with nearly Rs 25,000 crore earmarked for charging infrastructure and localization of components in the next few years.
