ICRA forecasts that renewable energy will constitute 35% of India's power generation mix by fiscal year 2029-30, up from 21% in 2024. In contrast, coal's share is expected to decline from 75% to 59% during the same period.
The Indian government aims for 50% of installed power capacity to derive from non-fossil sources by 2030, supported by a structured increase in renewable purchase obligations (RPOs). These obligations will see a rise from 24.3% in 2023 to 43.3% by 2030, necessitating a doubling of renewable capacity from 200 GW to 441 GW.
Achieving these targets will require substantial investments in energy storage, grid integration, and addressing challenges like land acquisition. ICRA emphasizes that while progress has been made, critical issues such as battery technology and charging infrastructure must be resolved for a successful transition.
Additionally, by 2030, electric two-wheelers are projected to represent 25% of new vehicle sales in India, with three-wheelers and buses at 40% and 30%, respectively. The public EV charging network is expected to expand to 45,000-50,000 stations by the end of 2025, a significant increase from 19,800 in 2023.