India needs US$ 200 billion to develop renewable energy by 2030

India needs around US$ 200 billion to develop renewable energy by 2030, driven by rising energy demand from data center expansion, increased electric vehicle adoption, and advancements in green hydrogen. A report by Nomura states that India’s energy demand will grow at a CAGR of 7% between FY24 and FY30.

According to a report by Nomura, India will require approximately US$ 200 billion in investments to develop renewable energy (RE) generating assets by 2030. This figure is considered conservative, given the country’s ambitious renewable energy targets. 

The report anticipates a compound annual growth rate (CAGR) of 7% in India’s energy demand from FY24 to FY30, surpassing the historical growth rate of about 5%. Key factors driving this increase include the expansion of data centers, rising electric vehicle (EV) adoption, and advancements in green hydrogen technology.

India’s installed power capacity is projected to grow significantly, expected to rise from 450.8 GW to 777.1 GW by FY30, reflecting a CAGR of 10%. In FY24, the country auctioned 40 gigawatts (GW) of RE capacity. However, to meet the goal of 500 GW of renewable energy capacity by 2030, the pace of auctions needs to accelerate to around 60 GW annually. The report suggests that the industry is well-positioned to meet this demand, supported by favorable pricing for solar modules and wind turbines.

The growth of renewable energy is further fueled by supportive government policies and strong initiatives from the commercial and industrial sectors to adopt greener solutions. Additionally, as the cost of green hydrogen production becomes competitive with grey hydrogen, demand for renewable energy is expected to increase even more. Currently, India’s total hydrogen demand is about 6 million tons, primarily driven by refineries, fertilizers, and steel production.

The report also estimates that electricity demand from EVs will grow significantly. By the end of FY25, EVs are projected to account for approximately 3.4 terawatt-hours (TWh) of electricity demand, which is only 0.2% of total power consumption. With the government aiming for 100% EV sales for new vehicles by 2030, this demand is expected to rise sharply.