India has launched one of the world’s most ambitious renewable energy programmes, with a goal of achieving 450 GW of renewable capacity by 2030. This represents a USD630 billion investment opportunity over the next decade. The country is well on its way to achieving its ambition, with nearly 100 GW already installed as of 2019e and its trajectory is expected to continue despite COVID-19 disruptions. This is because renewables prices are now competitive with coal, at Rs. 2.4-3.00/kWh. The key growth constraint, however, will be the rate at which the power system can absorb variable renewables while maintaining security of supply. Addressing this will require stakeholder collaboration in developing the optimal mix of enabling infrastructure – transmission, new generation capacity, storage - to deliver a sustainable power system between now and 2030. It will also mean taking into consideration the future roles of coal and gas.
This report by the Energy Transitions Commission and The Energy and Resources Institute (TERI) of India highlights how coal, battery storage, transmission, gas and hydro fit into the energy landscape in India over the next decade. It also provides scenarios for renewables penetration at different levels of technical, special and temporal levels. HSBC are members of the Energy Transition Commission.