India's Renewable Energy Ambitions: A Path to a Green Future
Key Ideas
- India requires USD 200 billion for renewable energy assets by 2030, aligning with its ambitious renewable energy goals.
- A projected 7% CAGR in India's energy demand between FY24 and FY30, driven by data centers, electric vehicles, and green hydrogen advancements.
- India's power capacity is expected to increase from 450.8 GW to 777.1 GW by FY30, with 40 GW of renewable energy capacity auctioned in FY24.
- Competitive pricing for solar and wind technologies, alongside government support and industrial momentum, position India well to meet heightened renewable energy demand.
A recent report from Nomura highlights the significant investment needed in India to construct renewable energy assets – approximately USD 200 billion by 2030. This aligns with India's ambitious renewable energy targets. The report forecasts a 7% compound annual growth rate (CAGR) in India's energy demand between fiscal years 2024 and 2030, exceeding the historical growth rate. Factors driving this surge in energy demand include the increased presence of data centers, the growing adoption of electric vehicles, and advancements in green hydrogen technology. The report suggests that these factors could lead to a higher-than-anticipated demand for renewable energy. India's current power capacity is set at 450.8 GW but is projected to rise to 777.1 GW by FY30, with 40 GW of renewable energy capacity already auctioned in FY24. However, to achieve the ambitious 500 GW target by 2030, the pace of renewable energy auctions needs to accelerate to around 60 GW annually. The industry appears well-prepared to meet this heightened demand, benefiting from competitive pricing for solar modules and wind turbines, as well as supportive government policies and increasing interest from commercial and industrial sectors in green energy solutions. Additionally, as the cost of producing green hydrogen becomes more economically viable compared to grey hydrogen, there's potential for renewable energy demand to exceed current expectations. Currently, India's total hydrogen demand is 6 million tons, with projections indicating a substantial rise in electricity demand from electric vehicles. By FY25, electric vehicles are expected to consume 3.4 terawatt-hours of electricity, although this represents a small portion of India's overall power consumption. The government's target of achieving 100% electric vehicle sales by 2030 further suggests a sharp increase in electricity demand.
Topics
India
Green Hydrogen
Renewable Energy
Government Policies
Investment
Electric Vehicles
Energy Demand
Renewable Energy Capacity
Growth Rate
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