India will need around $500 billion (£360bn) in additional investment to reach the target of 450GW of renewable capacity by 2030.
A new report by the Institute for Energy Economics and Financial Analysis (IEEFA) estimates approximately $300 billion (£216bn) is necessary for wind and solar infrastructure.
The analysis also highlights the country’s goal necessitates nearly $50 billion (£36bn) on grid investments such as gas peakers, hydro and batteries, and $150 billion (£108bn) on expanding and modernising transmission and distribution.
A few days ago, the International Energy Agency’s India Energy Outlook 2021 estimated India will need $1.4 trillion (£1tn) in additional funding for low emissions technologies in order to be on a sustainable path over the next 20 years.
That translates to 70% higher investments than in a scenario based on current policy.
Tim Buckley, Director Energy Finance Studies, South Asia, at IEEFA and Co-Author of the report, said: “India has a once-in-a-generation opportunity to transform its energy system, and the benefits of doing so are huge.
“India could dramatically improve its energy security by reducing reliance on expensive fossil fuel imports.
“The ongoing solar energy deflation, now around Rs.2/kWh, below the marginal fuel cost of coal-fired power plants, gives India the economic incentive to accelerate its energy transition and be a world leader in helping to solve the climate crisis, plus address chronic air pollution and water stress.”