Achieving India’s Renewable Energy Target by 2030

Recommendations and solutions for overcoming existing challenges and regulatory bottlenecks

Report by IEEFA and JMK Research, May 2024

India has ambitiously aimed for 500 gigawatts (GW) of renewable energy capacity by 2030, a crucial step towards sustainable energy independence. As of March 2024, the country has successfully installed approximately 190GW (including large hydro) of renewable energy, indicating significant progress towards India’s renewable energy target by 2030.

However, to meet the 2030 target, an annual installation rate of around 50GW is imperative. To put this into perspective, in the fiscal year (FY) 2023-24, India added only a little over 18GW of renewable energy capacity. Investments into the renewable energy sector also marginally declined from US$11.7 billion in FY2022-23 to US$11.4 billion in FY2023-24. Consequently, the country must accelerate its efforts, requiring more than 2.5 times the installation compared to the previous fiscal year.

These challenges underscore the complexities inherent in the renewable energy sector, hindering the seamless translation of issued tenders into tangible on-ground projects and impeding investment inflow. Addressing these issues is paramount to expediting renewable energy deployment and attracting the necessary investment. Therefore, this note outlines recommendations for implementation in the immediate and medium term, offering viable solutions to navigate the sector’s challenges and foster its growth.

Recommendations are designed and demarcated based on each RE market segment including Solar Photovoltaic (PV) supply chain, Utility-scale solar, Rooftop Solar, Open access, Energy Storage and Utility-scale wind. Several recommendations span multiple of these RE market segments. These are easing of import barriers, providing tax breaks, Strict Renewable Purchase Obligation (RPO) and Energy Storage Obligation (ESO) implementation, transmission infrastructure upgradation, subsidy support, more robust payment security and credit guarantee mechanisms, enhanced emphasis on research and development (R&D) and long-term clarity. Implementing these recommendations will empower India to address current obstacles and attract global investors, making the renewable energy sector more resilient and competitive.