In a significant stride towards sustainable energy goals, India is poised to fulfill its commitment of achieving 50% non-fossil fuel energy in its total installed power capacity by 2030, according to projections outlined in the National Electricity Plan by the Central Electricity Authority (CEA) and assessments by ICRA.
As per CEA's forecast, India's power generation capacity is anticipated to reach 758 GW by FY2030, with contributions from solar, wind, and hydro sources amounting to 412 GW. This marks a notable increase from the 125 GW recorded in FY2023, signaling an accelerated transition away from fossil fuels. The share of fossil fuels in the energy mix is expected to decline from 57% to 36% by the close of the decade.
ICRA's analysis supports this environmentally conscious trajectory, estimating that non-fossil fuel capacity will witness a rise to 330 GW, resulting in fossil fuels accounting for a 41% share in power generation by FY2030. These projections align with India's commitments under the Paris Agreement and the recommendations put forth at COP28, emphasizing the need for a substantial upswing in renewable energy capacity.
Realizing these ambitious targets will necessitate India to surmount implementation challenges and secure adequate funding, with an anticipated annual capacity addition of 29-30 GW from FY2024 to FY2030. These efforts hold paramount importance as India endeavors to strike a balance between its environmental responsibilities and economic development imperatives.