India has committed to cut half its carbon emissions and generate about 500GW of renewable power by 2030. A study from BloombergNEF(BNEF) suggests that the country will need $223 billion to meet this target.
India’s domestic power demand is booming after the pandemic. The country is grappling with coal dependency and failure to meet the target renewable production in 2022. The Central Electricity Authority has estimated the power generation distribution to change drastically by 2030, with coal dropping from 53% to 33% and the combination of solar and wind to grow from 23% to 51%.
According to Bloomberg’s report, India will need $233 billion to achieve its targets, in the face of inflation and weakening rupee.
“Scaling up financing to meet 2030 goals requires Independent Power Producers to tap into new or underutilized sources of capital. These could be revolving construction debt, investment infrastructure trusts and funding from retail investors, insurance companies and pension funds. "Higher funding requirements also need measures that can increase the availability of financing, such as de-risking renewable projects to offering contractual terms that provide greater comfort to investors," said Rohit Gadre, an analyst in BNEF's India research team.