India's renewable energy sector eyeing ₹30.5L crore investment by 2030
India's renewable energy sector should draw a staggering ₹30.5 lakh crore in investments between 2024 and 2030, as per the Economic Survey 2023-24 presented in Parliament today. The survey emphasized that finance mobilization, competitive investment terms, and land acquisition resolution, are key to achieving the ambitious target of generating 500GW of renewable energy by 2030. Notably, from 2014 to 2023, the clean energy sector in India attracted new investments worth ₹8.5 lakh crore.
FDI boosts India's clean energy sector
The renewable energy sector in India has also benefited from substantial foreign direct investment (FDI), receiving approximately $17.88 billion from April 2000 until March 2024. To further stimulate the sector, the Economic Survey suggested that the banking sector should be prepared to arrange finances for larger deployment goals. It also proposed exploring low-interest rates, long-term international funding, and developing a proper mechanism for risk mitigation or sharing, by addressing both technical and financial bottlenecks.
Land acquisition key to India's renewable energy goals
The Economic Survey underscored the importance of land acquisition in achieving renewable energy targets. It suggested identifying land with renewable energy potential, its conversion if necessary, clearance from the Land Ceiling Act, a decision on land lease rent, and obtaining clearances from the Revenue Department. The survey emphasized that state governments must play a significant role in acquiring land for renewable energy projects, to ensure the sector's growth and development.
India's ambitious renewable energy targets
India has set an ambitious goal of generating 500GW of renewable energy by 2030. The country aims to achieve a cumulative installed capacity of electric power from non-fossil fuel-based energy resources by half by this time. The National Electricity Plan predicts that non-fossil fuel-based capacity will increase from around 203.4GW (46% of total) in 2023-24, to 349GW (57.3%) in 2026-27, and further to 500.6GW (64.4%) in 2029-30.
Green transition to create millions of jobs in India
The Economic Survey indicated that India's transition to green energy is tipped to significantly impact job opportunities in the renewable energy sector. It stated, "By 2030, clean energy initiatives can potentially create about 3.4 million jobs (short and long-term) by installing 238GW of solar and 101GW of new wind capacity." These jobs would be mainly created in the wind and on-grid solar energy sectors, potentially employing about 10 lakh people.
