Sujoy Bose, MD and CEO of the National Investment and Infrastructure fund, has recently stated that India needs a lot of money (hundreds of billions) to fulfil its needs for sustainability and renewable energy. Mr Bose quoted the exact amount as $560 Million, which roughly sums up to even more than seven times India’s GDP currently, which is $3.5 trillion.
Bose has claimed that to achieve the goal of “Net Zero” by 2030, India has to invest a large sum of money, amounting to trillions. According to him, the sustainability goals will help India environmentally and enhance the economy.
Bose stated that “India can become a new hub for technology and its deployment. Investing in sustainability is required to be at the forefront of new industries,” while he was at the annual FICCI Capital Markets conference, pointing out that the due investments can possibly lead to new, higher-income jobs and much better opportunities work-wise.
This whole ‘Net Zero’ project will even help raise the median salaries on average; according to a survey done in the year 2020, India sported the 72nd rank amongst 106 countries at an average of $400.
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The Need for $200 Billion for Fossil Fuel Energy (500 GW) by the Year 2030
In today’s times, at least 40% of the total energy is fulfilled by hydropower and renewable energy sources. However, as Mr Bose stated, the Indian government is keen on increasing the usage by 60% in the next ten decades, for which there will be a need for at least a $200 billion sum of money.
In the current scenario, the total capacity of India’s renewable energy capacity is somewhere around 160GW, and by the year 2030, the Indian government aims to take it up to 500GW. After all the calculations and estimates,, the total energy capacity will double the current capacity, i.e. 404GW will become 804GW by 2030.
The Need for $160 Billion for Green Hydrogen Goals
To achieve the “Net zero” status, green hydrogen is the most important constituent. India’s wealthiest men, Gautam Adani and Mukesh Ambani are both very excited and eager to stride towards that level. At the start of 2022, Gautam Adani duly announced his partnership with France’s Total Energies to produce an ecosystem of green hydrogen with $50 billion of investment over the next 10 years.
Not only this, but Mr Ambani has also pledged $75 billion for green energy, including an undisclosed sum for green hydrogen.
Even after all this investment, the goal amount for green hydrogen gas is far from reaching the appropriate capital amount. The organisations like Indian Oil Corporation and the Greenko Group have extended their hands to help in this move.
see also – How is Net-Zero Architecture Shaping The Future?
The Need for $200 Billion for EV Goals by the Year 2030
India might still be witnessing a revolution in the EV domain, but there has been a significant jump in sales of EV units in the last 2 years, approximately 5 Lakh units in total.
According to the latest reports produced by the Indian Energy Storage Alliance (IESA), EV sales could increase successfully with an annual growth rate of 49% if compounded, resulting in an increase in sales to around 17 million. To make this a reality, India would need approximately $200 billion.
Following are Some of the Ways by Which India can Fund its Goals of Renewable Energy
Three types of capital are required to fund India’s renewable energy goals: Equity, Risk Capital and Debt.
Mr Basu stated that “The government has shown the way via the regulatory innovation in the case of renewable energy – the creation of the Solar Energy Corp of India, combined with tools such as priority dispatch, was crucial to give a fillip to private investment in the renewable sector,”
