India could attract US$500 to 700bn in new investment in renewable sector by 2030

The report finds a key prerequisite for continuing India’s renewable energy investment ambition is concurrently building out and modernising India’s national transmission grid to accelerate the enormous progress achieved over the last decade. “India could attract US$500 to 700bn in new investment by 2030 – the opportunity is huge,” says Buckley. To do this, India’s grid must be urgently expanded. The slow-down in transmission capacity is slowing India’s renewable energy ambition and the continuing ballooning underfunding of subsidies and rising state-DISCOM debt is severely hampering the financial industry’s ability to finance new renewable energy development, as is some state’s desire to renegotiate on projects. This is not on – and creates instability for investors.

Policy certainty will increase domestic and international investing into India finds a new report out by the Institute for Energy Economics and Financial Analysis (IEEFA). “India is one of the world’s largest and fastest growing markets for renewable energy and power transmission,” says report author and IEEFA’s Director of Energy Finance Studies Tim Buckley.

“Domestic renewable energy tariffs are now two thirds the cost of domestic coal-sourced power tariffs and half that of new imported thermal power costs, India must be very proud of this result, and they must leverage this opportunity to enhance energy security whilst securing deflationary domestic energy investments. The opportunity cost of delaying India’s electricity sector transition is too high. With a few policy tweaks, India could be back on track to meet its ambitious target of 450 gigawatt of renewable by 2030.”

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