India's renewable energy sector to attract Rs 30.5 lakh Cr investment by 2030: Economic Survey

Mobilisation of finance, as well as investment in competitive terms and resolution of land acquisition issues, are necessary for realising the Rs 30.5 lakh crore investment required to meet the target of 500GW renewable energy in India by 2030, according to the Economic Survey.

The Economic Survey 2023-24, tabled in Parliament on Monday, showed the Renewable Energy (RE) sector is expected to attract investments of about Rs 30.5 lakh crore in India between 2024 and 2030.

According to the survey, this would create significant economic opportunities across the value chain.

The clean energy sector in India saw new investments of Rs 8.5 lakh crore ($102.4 billion) between 2014 and 2023, it said, adding that the RE sector received about $17.88 billion as FDI from April 2000 until March 2024.

On mobilisation of necessary finance and investments on competitive terms for the RE sector, the survey pointed towards gearing up the banking sector for arranging finances for larger deployment goals, exploring low-interest rate, and long-term international funding, and developing a suitable mechanism for risk mitigation or sharing by addressing both technical and financial bottlenecks.

On land acquisition, the Survey pointed towards identification of land with RE potential, its conversion (if needed), clearance from the Land Ceiling Act, decision on land lease rent, clearance from revenue department, and other such clearances.

State governments must play a major role in the acquisition of land for RE projects, it suggested.

The suggestions assume significance given India's ambitious target of having 500GW of renewable energy by 2030.

India has put in place a target of achieving 50% cumulative installed capacity for generating electric power from non-fossil fuel-based energy resources by 2030.

As per the National Electricity Plan of the Central Electricity Authority, non-fossil fuel (hydro, nuclear, solar, wind, biomass, small hydro, pump storage pumps) based capacity which is around 203.4 GW (46 per cent of the total) out of 441.9 GW of total installed capacity in 2023-24 is likely to increase to 349 GW (57.3 per cent) in 2026-27, and 500.6 GW (64.4 per cent) in 2029-30, it stated.

The survey also stated that India's green transition is more likely to significantly impact job opportunities in the renewable energy sector.

"... By 2030, clean energy initiatives can potentially create about 3.4 million jobs (short and long-term) by installing 238 GW of solar and 101 GW of new wind capacity to achieve the 500 GW non-fossil electricity generation capacity," it stated.

These jobs represent those created in the wind and on-grid solar energy sectors, it said, adding that about one million can be employed to take up these green jobs.