If India is to to reach its net-zero emissions by 2070, it needs a shift in its energy mix toward renewable energy, enabled by supportive government policies, private sector participation and low cost capital, Moody’s Investors Service said in a report on Monday.

The government’s support in encouraging the private sector and overseas investors to participate in renewables would be key in India achieving its targets, the report said.

Overall, the country will need investment of around $225-250 billion to meet its 2030 renewable targets.

India’s ability to reach its 2030 renewable energy goals will be determined by its ability to acquire low-cost, long-term, and diverse finance sources from both the public and private sectors.

“The country aims to triple its renewable energy capacity to 500GW by 2030 from 157GW as of March 2022, and to have 50% of the electricity generation from non-fossil fuel sources. The key enabler will be the competitiveness of wind and solar generation over coal-fired power generation because of technological developments, supportive government policies, private sector participation,” says Abhishek Tyagi, a Moody’s Vice President and Senior Credit Officer.

The government’s continued policy support is critical – the country’s renewable energy footprint has grown dramatically over the last 4-5 years as a result of favourable government policies that encouraged domestic and international investors to participate in the sector.

The poor financial health of India’s state-owned distribution businesses will continue to be a hurdle for the country’s renewable energy sector. Payment delays are common for these enterprises, resulting in a buildup of receivables from off-takers and an increase in working capital debt for renewable energy companies, the report said.

https://m.economictimes.com/industry/renewables/india-needs-225-250-bn-investment-to-meet-its-2030-renewable-energy-target-moodys/amp_articleshow/92173747.cms