The Indian Government is planning to significantly boost the renewable energy capacity addition target for the medium term as part of its national climate change policy.
According to media reports, the government may soon announce a target to have 40% power generation capacity based on renewable energy technologies by 2030. This would translate to around 350 GW by 2030, pushing the country’s expected total capacity to 850 GW power generation capacity.
India currently has an installed capacity of around 275 GW, with over 36 GW of renewable energy capacity, contributing around 13% to the installed base.
The huge boost in the country’s renewable energy target will mostly comprise of solar (250 GW) and wind power (100 GW). Announced installed capacity targets for 2022 are: 100 GW solar power and 60 GW wind energy capacity. In the solar power market, the government is planning to have several auctions, including those for 25 ultra mega solar power projects. In the wind energy sector, the government has announced policy to open the offshore wind energy market, and may consider competitive auctions.
The new target may be announced as part of India’s commitment for this year’s global climate change summit in Paris. The Indian Government has made it clear that it would not commit to any emissions reduction or even peaking targets.
There are also reports that India may enhance its commitment to reduce emissions intensity. It is safe to assume that any target proposed by India would include conditions for substantial international support. Such a huge installed capacity targets would require unprecedented investment in India’s renewable energy market. India is looking to raise funds through green bonds and is also looking to secure low-cost debt finance from global development banks including the International Finance Corporation, Asian Development Bank, and KfW.