The share of renewable energy including hydro in the country’s power generation is projected to rise to 35 per cent by FY2030, up from 21 per cent in FY2024, said the rating agency on Friday.
Icra anticipates that achieving the Renewable Purchase Obligation (RPO) target of 43.3 per cent by FY2030 will require more than doubling the current renewable energy capacity of 200 GW, to meet future demand. This will involve significant investments in energy storage and grid integration solutions, as well as addressing challenges related to land acquisition and transmission infrastructure.
Girishkumar Kadam, Senior Vice President & Group Head of Corporate Ratings at Icra, said, "India has made significant progress in renewable energy capacity addition with a strong policy focus, but factors such as energy storage, grid integration, and fully integrated renewable energy equipment manufacturing pose challenges, given the increasing share of renewables in the energy mix.”
He added that the evolving landscape presents both risks and significant investment opportunities, especially as the demand for cleaner energy sources intensifies. The sector's growth potential is immense, provided the government addresses these pressing issues expeditiously.
“By FY2030, electric two-wheelers will account for 25 per cent of new vehicle sales, while electric three-wheelers and buses will constitute 40 per cent and 30 per cent, respectively. The EV sector to attract substantial investments, with nearly Rs 25,000 crore anticipated to be poured into charging infrastructure and localisation of EV components over the next three to four years,” the rating agency said.
It added that hurdles such as charging infrastructure, battery technology, and supply chain resilience are the key critical areas that need to be addressed for a successful transition to sustainable transportation.
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