For Net Zero, India Needs 494 GWs Of Solar & Wind By 2030

For Net Zero India Needs 494 GWs Of Solar & Wind Capacity By 2030: Bloomberg NEF

By Tej Prakash Bhardwaj/ Updated On Thu, Sep 5th, 2024

Highlights :

Bloomberg NEF’s New Energy Outlook: India details how the country can accelerate its decarbonization trajectory in line with the Paris Agreement commitment
Over $12 trillion in investment and spending is required for BNEF’s Net Zero Scenario, 34% more than the baseline Economic Transition Scenario
More than 4 terawatts of wind and solar capacity are installed by 2050 in the Net Zero Scenario, while power demand grows six-fold from 2023.

For Net Zero India Needs 494 GWs Of Solar & Wind Capacity By 2030: Bloomberg NEF

The New Energy Outlook report released by Bloomberg NEF at its Indian event says India needs more than 4 terawatts of wind and solar capacity installation by 2050 for the Net Zero Scenario. Power demand is projected to grow six fold during the period.

Moreover, the report also calls for over $12 trillion investment and spending for BNEF’s Net Zero Scenario. This is 34 per cent more than the baseline Economic Transition Scenario (ETS).

Note, that ETS is a scenario that explores how the energy sector might evolve as a result of technology changes and market forces.

The report states that India’s window to curb its carbon emissions in line with the major goal of the Paris Agreement – holding global warming to well below two degrees Celsius and avoiding the worst impacts of climate change – is still possible, however, it looks increasingly hard to achieve.

Need To Decarbonize Power Sector

To achieve BNEF Net Zero, India needs to rapidly decarbonize its power sector – the largest emitter in the country. Moreover, to stay on track, India needs to triple its solar and wind capacity by 2030 to 494 GWs.

The analysis also shows that India’s energy mix needs to transform over the next two decades and the unabated fossil-fuel-based power generation needs to exit the grid by 2045. Moreover, the electricity output needs to transition to a mix of low-cost renewables paired with flexible technologies like batteries, pumped hydro, and gas peakers.

“India’s 4 terawatts of wind and solar build from now through mid-century represents a $2.1 trillion investment opportunity for the industry,” said BNEF India analyst Siddharth Shetty, the lead author of the report.

“A renewables-heavy system also poses severe grid-balancing challenges. We need flexibility in the system not just in the form of batteries and pumped hydro on the supply side but also in the form of electrolyzers and smart vehicles charging on the demand side,” he added.