India’s renewable energy share to reach 35% by FY2030, EV sector to attract ₹25,000 crore investment: Icra Published 3 months ago By SuperAdmin India’s transition to green mobility and renewable energy presents both opportunities and risks. The renewable energy sector is expected to witness significant growth, but investments in energy storage and infrastructure remain vital to sustaining this growth.New Delhi: India’s renewable energy share in its power generation mix is projected to grow to 35% by FY2030, up from 21% in FY2024, rating agency Icra said. During a media roundtable, Icra outlined the country’s progress in renewable energy and electric vehicles, driven by India's commitment to achieving 50% of its installed power capacity from non-fossil fuel sources by 2030. Meeting the Renewable Purchase Obligation (RPO) target of 43.3% by FY2030 will require India to more than double its current renewable capacity of 200 GW.Renewable energy growth and challengesGirishkumar Kadam, Senior Vice President & Group Head - Corporate Ratings, Icra, highlighted key challenges such as energy storage and grid integration that must be addressed for India to scale up its renewable energy capacity. "India has made significant progress in renewable energy capacity addition with a strong policy focus. However, challenges like energy storage, grid integration, and renewable energy equipment manufacturing remain," he said. Investments in grid infrastructure and addressing land acquisition issues will also be crucial as India pushes toward its sustainability goals.EV sector to attract ₹25,000 crore investmentIcra also projects that India’s electric vehicle (EV) sector will attract ₹25,000 crore in investments over the next three to four years, with funds focusing on building charging infrastructure and localizing EV components. By FY2030, electric two-wheelers are expected to account for 25% of new vehicle sales, while electric three-wheelers and buses are forecasted to make up 40% and 30%, respectively.Shamsher Dewan, Senior Vice President & Group Head - Corporate Ratings, Icra, noted, “The EV sector in India is in its early stages, but the momentum is undeniable. Strategic investments and continued policy support will be essential for overcoming existing challenges and positioning India as a global leader in electric mobility.”Opportunities and risksIndia’s transition to green mobility and renewable energy presents both opportunities and risks. The renewable energy sector is expected to witness significant growth, but investments in energy storage and infrastructure remain vital to sustaining this growth. The EV sector, while poised for rapid expansion, must overcome hurdles like charging infrastructure, battery technology, and supply chain resilience to achieve its targets.India's green energy ambitions continue to align with global sustainability goals, positioning the country to become a leader in renewable energy and electric mobility over the next decade.
