India to Invest $385 Billion in Renewable Sources by 2030: Moody's

According to Moody's Ratings, India is poised to invest up to $385 billion to achieve its ambitious target of 500 gigawatts (GW) of renewable energy by 2030. Despite this significant investment in renewable energy, coal will continue to play a crucial role in the country's electricity generation for at least the next decade.

India, one of the world's largest greenhouse gas emitters, has committed to increasing its non-fossil fuel capacity by 50 GW annually to reach the 500 GW goal. However, the country fell short of its earlier target of 175 GW by 2022. Moody's estimates that an annual addition of approximately 44 GW is required to meet the 2030 target.

To reach this target, India will need to allocate between $190 billion to $215 billion for capacity expansion over the next six to seven years, along with an additional $150 billion to $170 billion for transmission and distribution infrastructure, as per Moody's estimates.

Moody's also highlighted the financial implications of this transition, noting that the substantial pipeline of announced projects will likely increase the financial leverage of rated renewable power companies in the short term, posing a credit risk. However, the leverage of government-related issuers is expected to remain moderate over the same period.

India's strong policy support has significantly boosted the share of renewable energy in its power capacity mix, which reached approximately 43% in the fiscal year 2023-24. This supportive policy environment has attracted substantial private sector investment, with notable commitments from companies like the Adani Group. Adani Green Energy aims to generate 45 GW of renewable power by 2030, positioning itself as India's first integrated renewable energy player.

Moody's emphasized that ongoing policy support will be critical for India to make significant strides toward its 2030 energy transition goals and its 2070 net-zero targets.