S&P Global Ratings says India needs $540 billion for renewables by 2029

S&P Global Ratings said that India will need USD 540 billion in investment between 2020 and 2029 to meet its ambitious renewable energy targets.

By 2070, India aims to achieve net zero emissions. The country targets 500 gigawatts (GW) of non-fossil energy capacity, 50% renewable energy, a reduction of 1 billion tonnes of emissions, and a 45 percent reduction in emissions intensity of GDP by 2030.

In its report 'Asia-Pacific's Different Pathways To Energy Transition', S&P Global Ratings said the addition of renewables capacity in India is outpacing coal, but demand growth and intermittency issues are leading to greater coal usage and new coal plants.

Half of these investments will be in renewables and batteries, and another third in strengthening the grid.

Being the world's fourth biggest emitter of carbon dioxide India after China, the US and the EU. But its emissions per capita are much lower than other major world economies. India emitted 1.9 tonnes of CO2 per head of population in 2019, compared to 15.5 tonne for the US and 12.5 tonne for Russia that year.

Energy transition refers to the shift from fossil-based systems of energy production and consumption - including oil, natural gas and coal - to renewable energy sources like wind and solar, as well as lithium-ion batteries.

It is estimated that 12.1 GW of energy storage is likely to be added from now till 2030 against a target of 27 GW of battery and 10 GW of pumped storage by 2030, it said, adding 20 per cent tariff on Chinese batteries and subsidies for domestic production aim to develop the ecosystem.

S&P in a report said the countries of Asia-Pacific still have a long way to go before they can meet their ambitious energy targets.