India needs to address major obstacles to reach its 2030 target of setting up 500 GW of renewable power plants as Ember reveals in its new energy report. To align with important climate targets annual investment needs to grow by 20 percent compared to current amount.
Project start-up hit roadblocks because authorities could not buy the land, connect the grid system, and sign power purchase agreements. The delays in project approval along with FDRE project uncertainty can push capital costs up by 400 basis points. India would not meet its renewable power goals and customers would pay more for energy when financing needs increase by 20 percent.
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The report points out that renewable power activities and transmission need $28 billion in financing FY2024. Investment needs consistent $68 billion annual financing up to 2032. India requires $300 billion in total investments to reach its 2030 target which stands as a critical objective under the 14th National Electricity Plan (NEP-14). By 2032 the NEP-14 plans to install 696 GW of renewable power mainly solar at 365 GW plus 122 GW of wind energy alongside substantial battery and water pumping systems.
