(MENAFN- KNN India)
New Delhi, Oct 10 (KNN)
A recent report by Nomura has shed light on the significant investments required for India to meet its ambitious renewable energy targets by 2030.
The financial services firm estimates that approximately USD 200 billion will be needed to establish renewable energy generating assets within the next six years.
This conservative projection is based on India's stated goals for renewable energy generation and takes into account the country's rapidly growing energy demand.
Nomura forecasts that India's energy consumption will increase at a compound annual growth rate (CAGR) of 7 percent between fiscal years 2024 and 2030, surpassing the historical growth rate of about 5 percent.
The report identifies several key factors driving this surge in energy demand, including the expansion of data centres, increasing electric vehicle (EV) penetration, and advancements in green hydrogen technology.
These developments could potentially lead to an even greater demand for renewable energy than currently anticipated.
India's installed power capacity is expected to grow substantially, with projections indicating a 10 percent CAGR over the FY24-FY30 period, potentially reaching 777.1 gigawatts (GW) from the current 450.8 GW.
To achieve the country's target of 500 GW of renewable energy capacity by 2030, the pace of renewable energy auctions will need to accelerate significantly.
Nomura suggests that approximately 60 GW of capacity will need to be auctioned each year, a considerable increase from the 40 GW auctioned in FY24.
The report expresses optimism about the industry's ability to meet this rising demand, citing favourable prices for solar modules and wind turbines as contributing factors.
Supportive government policies and a strong push from the commercial and industrial sectors to adopt greener energy solutions are identified as key drivers of this growth.
The potential for even greater renewable energy demand is highlighted in the context of green hydrogen production.
As the cost of producing green hydrogen approaches parity with grey hydrogen, demand for renewable energy could exceed current projections.
India's total hydrogen demand currently stands at 6 million tons, primarily driven by refineries, fertilisers, and the steel industry.
Electric vehicles are expected to play a significant role in driving electricity demand in India.
By the end of FY25, EVs are projected to account for around 3.4 terawatt-hours (TWh) of electricity demand, representing 0.2 percent of the country's total power consumption.
However, with the government's ambitious goal of achieving 100 percent EV sales for new vehicles by 2030, this demand is anticipated to rise sharply in the coming years.
As India continues its transition towards a more sustainable energy future, the renewable energy sector appears poised for substantial growth and investment opportunities in the years ahead.
(KNN Bureau)
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