S&P | claims India’s clean energy technological capabilities will increase significantly by 2030 Economic and Political News

2 minutes of reading Last update: October 7, 2024 | 20:42 IST

India’s clean energy technology potential is expected to grow significantly by 2030, but the country is likely to fall short of its green energy target due to challenges such as availability of technological innovations and skilled labor, a report on Monday said.

The Center has set itself the goal of achieving 50% of the total installed electricity capacity from non-fossil energy sources by 2030.

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Thanks to supportive government policies, India’s clean energy technology capabilities are expected to increase significantly by 2030, leading to full solar and wind self-sufficiency by 2030, according to S&P Global Commodity Insights.

“However, challenges such as gaps in technological innovation, skills shortages, inadequate infrastructure and inconsistent policy enforcement could hinder progress towards 2030 clean energy goals,” it said.

Various policy measures have been introduced to support local production, including tariffs on imported goods such as Basic Customs Duty (BCD) and Goods and Services Tax (GST), along with approved lists of manufacturers and models. Approved List of Models and Manufacturers (ALMM). (ALMM) and revised list of models and manufacturers (RLMM).

Other measures include direct incentives such as the PLI scheme to further support domestic production and innovation in the sector.

These favorable policies are expected to lead to a significant increase in India’s clean energy capacity by 2030, it says.

“Forecasts indicate that India will achieve 107 GW of solar module capacity, 20 GW of wind nacelle capacity, 69 GWh of battery cell capacity and 8 gigawatt equivalent (GWe) of electrolyzers. This growth will enable India to become fully self-sufficient in photovoltaics, solar wind and more than 90 percent in battery cells, said Indra Mukherjee of S&P Global Commodity Insights.

Even though production capacity is growing, India still faces obstacles in achieving its ambitious renewable energy installation targets.

In the solar PV sector, India is struggling to meet its polysilicon and wafer production targets, limiting its competitiveness.

Similarly, India’s wind turbine product mix needs to be brought up to global export standards, and the nascent offshore wind sector will require further investment.

(Only the headline and image of this report may have been reworked by the Business Standard team; the rest of content is automatically generated from a syndicated feed.)

First publication: October 7, 2024 | 20:42 IST