India’s RE targets for the next decade

India has set ambitious renewable energy capacity targets for the next decade, with the aim of meeting 50% of its energy requirement from renewable energy sources and reducing the carbon intensity of its economy by 45% by 2030. The country plans to increase its non-fossil energy capacity to around 450-500 GW by 2030. India targets to increase its RES capacity by 4-4.5 times over FY21-FY30, with renewables expected to add 342 GW during the same time, coal 57 GW, hydro 15 GW, and nuclear 9 GW.

India’s power demand is expected to grow at a CAGR of 6.2% over FY21-FY30, reaching 2518 BU by FY30, and the country is expected to add 423 GW of incremental capacity in the next decade to reach 805 GW by FY30. To absorb this robust renewable energy capacity addition, the government is in talks with state discoms to scale up the Renewable Purchase Obligation (RPO) target from 10-15% to 40% by FY30.

The renewable sector will play a significant role in meeting the country’s carbon emission target and the projected incremental power demand in the next decade. With demand expected to increase to 2518 BU by 2030, renewable energy sources are expected to contribute 37% of it (955 BU), assuming 436 GW of renewable energy capacity is operating at 25% PLF.

In summary, the table below shows the key targets and expected growth of different energy sources in India over the next decade: