India needs $385 billion investment to meet its renewable energy target: Moody’s

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Moody’s Ratings analysts estimate India needs $385 billion to meet its renewable energy target of 500 GW by 2030. Out of this, the nation needs $190 billion to $215 billion on the renewables capacity addition over the next six to seven years and another $150 billion to $170 billion for transmission and distribution.

India aims to increase non-fossil fuel capacity by 50 GW each year to meet its 500 GW target.

However, Moody’s analysts estimate that an annual capacity addition of 44 GW would help the nation achieve the target.

“The sizable pipelines of announced projects will likely keep financial leverage of rated renewable power companies high over the next two to three years, a credit negative, but leverage of government related issuers is likely to remain moderate over the same period,” said the analysts.

Moody’s stated that strong policy support by the government has boosted the nation’s renewable energy share to around 43% in its power in fiscal 2023-24, as well as attracting private sector investments. It added that continued policy backing will facilitate the nation’s progress toward 2030 transition and 2070 net-zero targets.

 

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