Meeting India's Clean Energy Goals with Smart Investments: The Path to 2030
Key Ideas
- India on track to achieve 2030 clean energy goals with current support but further investment needed for electric vehicles, offshore wind, and green hydrogen.
- Solar PV and BESS backed by subsidies, but electric two-wheelers, green hydrogen, and offshore wind require additional funding for cost competitiveness.
- Offshore wind has the largest cost gap, with potential for GDP gains and reduced government spending through public-private partnership.
- Financial support can accelerate cost parity for electric vehicles significantly, ensuring global competitiveness and long-term sustainability for India.
A recent report by CSTEP and IISD suggests that India is poised to achieve its 2030 clean energy targets without additional financial support, attributing the success to government subsidies and regulatory reforms. While solar PV and battery energy storage systems are on track, there is a need for increased backing for offshore wind, electric vehicles (EVs), and green hydrogen to enhance their cost competitiveness. The report highlights the cost gaps for different technologies, with offshore wind requiring a substantial investment to bridge the gap. By suggesting a model where offshore wind is bundled with cheaper renewable sources, the report aims to attract more investors and reduce government spending. For EVs, financial support could expedite the achievement of cost parity, benefitting not only the environment but also the country's economic competitiveness. The authors emphasize the importance of bold investments and policy alignment to realize India's clean energy ambitions, positioning technologies like offshore wind and green hydrogen as transformative opportunities for the energy sector.