India plans $109 billion grid investments to boost renewable energy

India plans a massive upgrade and expansion of its power transmission system, with $109 billion in investment opportunities to support the integration of renewable energy sources and storage solutions, the ministry of energy

India’s new National Electricity (Transmission) Plan envisages the addition of hundreds of thousands of kilometers of transmission lines, transformation capacity and inter-regional transmission capacity by 2032.

India aims to have 500 gigawatts (GW) of renewable energy capacity installed by 2030 and more than 600 GW by 2032, according to the National Electricity Plan.

The country expects its energy demand to increase to 708 GW by 2047, India’s Energy Minister Manohar Lal said in a statement. To meet this demand, India needs to quadruple its electricity capacity, the minister added.

“It’s not just about increasing capacity; it’s about reimagining our entire energy landscape,” Lal said.

“We have set ourselves an ambitious target of 500 GW of non-fossil energy capacity by 2030, effectively doubling our current capacity,” he added.

This push towards green energy is in line with India’s commitment to reduce carbon emissions by one billion tonnes by 2030 and achieve net zero emissions by 2070, the power ministry said.

Last month, Renewable Energy Minister Pralhad Joshi said financial institutions had pledged $386 billion in investment commitments to help India boost its renewable energy industry.

The country will need to install at least 44 GW of clean energy capacity each year by the end of the decade to meet the 500 GW target, according to Bloomberg estimates based on data from the Indian Power Ministry.

“We have received overwhelming commitments from states and Union Territories as well as developers, manufacturers and financial institutions to support our target of 500 GW by 2030,” Joshi said at the annual meeting and exhibition of ‘investors in renewable energy in India.

India-based conglomerates Reliance Industries and Adani are among the companies that have committed to additional renewable energy capacity. Reliance committed 100 GW of additional renewable capacity and Adani Green Energy committed to develop 38.8 GW of capacity.

By Charles Kennedy for Oilprice.com

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