India Aims for 750 Gigawatts of Renewable Energy Capacity by 2030, Says Amitabh Kant

India should target 750 gigawatts of renewable energy capacity and aim to export clean energy by 2030, according to former NITI Aayog CEO Amitabh Kant. He highlighted the importance of establishing strong financial systems to attract private investments in renewable projects, despite the availability of global funds.

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Kant stressed that India must drive its own agenda amid global crises like the Russia-Ukraine war and trade barriers from countries such as the US and Europe. These issues are impacting free trade and renewable energy prices. "And the Indian agenda must be very clear -- we are an importer of fossil fuels worth USD 180 billion, and our goal must be to become an exporter of clean energy... Our objective must be to surpass 500 gigawatts and reach 750 gigawatts of renewable energy," Kant said.

Renewable Energy Goals and Financial Systems

India has pledged to achieve 500 GW of non-fossil fuel-based electricity installed capacity by 2030. Currently, the country has a power generation capacity of 424 GW, with around 180 GW from non-fossil sources. To meet its renewable energy targets, India will need external financial support in addition to internal markets.

Kant noted that there is no shortage of funds globally, with USD 150 trillion available from sovereign wealth funds and pension funds. He urged international financial institutions like the ADB and World Bank to use guarantees and blended finance to increase private investment in countries in the Global South, particularly India.

Infrastructure Improvements for Renewable Energy

To facilitate investment, Kant suggested India establish robust financial systems, such as escrow accounts, to ensure payments to investors. This would prevent situations where private companies have to take legal action against discoms for payment issues. He also called for improvements in India's energy infrastructure, including smart grids, smart meters, and green energy corridors.

Kant emphasized the need for India to focus on producing green hydrogen and decarbonizing sectors like steel, cement, and transport. This requires mandates for discoms to purchase renewable energy and for the private sector to transition to green hydrogen.

Storage Capacity and Global Climate Action

Pump and battery storage are crucial for the future of renewable energy, especially for electric mobility and long-distance transport powered by green hydrogen. According to the Central Electricity Authority, India will need 27 GW of battery storage capacity by 2030 to meet its renewable energy goals.

Kant mentioned that during India's G20 leadership, a roadmap was laid out for tripling renewable energy and doubling energy efficiency. This effort was essential for achieving consensus at COP meetings under the UN Framework Convention on Climate Change.

The International Energy Agency states that tripling global renewable energy capacity and doubling energy efficiency is vital to limit temperature rise to 1.5 degrees Celsius. Kant noted that this year’s G20 and COP UN meetings coincide, making it challenging for G20 decisions to directly influence COP outcomes.

However, he believes the G20 should continue advocating for increased climate action, particularly regarding climate finance and technology from developed nations. This ongoing advocacy is crucial for addressing global climate challenges effectively.