India needs $1.5T by 2030 for climate, energy goals: Report
What's the story
India will need an investment of around $1.5 trillion by 2030 to meet its climate change and energy transition goals, a new report by Deloitte has said. The study, titled "The Climate Response: Tapping into India's Climate and Energy Transition Opportunity," highlights the massive capital requirement across renewable energy, biofuels, decarbonization, and sustainable infrastructure sectors.
Capacity expansion
$200-250 billion for 500GW non-fossil capacity
To achieve the government's target of 500GW of non-fossil capacity by 2030, Deloitte estimates an investment of $200-250 billion. The investment will be needed across advanced manufacturing, grid integration, and system expansion. Currently, India's total non-fossil fuel capacity is at 242.8GW or nearly half of the country's total installed capacity (484.8GW).
Storage infrastructure
$300 billion storage push to meet renewable energy goals
The report also emphasizes that the expansion of India's renewable energy capacity will require a major scale-up of energy storage infrastructure, by nearly eight times. This would require an estimated capital expenditure of $250-300 billion by FY30. Additionally, government initiatives such as ethanol blending mandates and green hydrogen adoption are expected to drive investments in biofuels ($75-80 billion) and green hydrogen ($90-100 billion).
Infrastructure needs
Climate-resilient infrastructure investments
The report also highlights the need for investment in climate-resilient infrastructure, including water security, sustainable agriculture, and transport. An estimated $60-75 billion will be needed for water-related infrastructure such as sourcing, treatment, supply conservation, and recycling. Sustainable farming practices could attract investments of $20-22 billion, while building a sustainable transport system is expected to require investments of $600-650 billion.