New Delhi, Oct 7 (PTI) India should aim for 750 gigawatts of renewable energy capacity and become a clean energy exporter by 2030, former NITI Aayog CEO Amitabh Kant said on Monday.
At a roundtable discussion here, Kant said that there is no shortage of global funds for clean energy, but India needs to establish strong financial systems, such as escrow accounts, to attract private investments for renewable projects.
He emphasized that it is "very important that India is able to drive its own agenda" amid multiple global crises, including the Russia-Ukraine war, West Asia conflicts, and trade barriers from countries like the US and Europe, which are affecting free trade and renewable energy prices.
"And the Indian agenda must be very clear -- we are an importer of fossil fuels worth USD 180 billion, and our goal must be to become an exporter of clean energy... Our objective must be to surpass 500 gigawatts and reach 750 gigawatts of renewable energy," Kant said.
India has committed to achieving 500 GW of non-fossil fuel-based electricity installed capacity by 2030. At present, the country has 424 GW of power generation capacity which includes around 180 GW from non-fossil energy sources.
To achieve its renewable energy goals, India will need finances to flow in from external sources, not just from internal markets, he said.
"There may be a lack of projects, but there is no shortage of funds in the world, irrespective of what is being said. USD 150 trillion is available with sovereign wealth funds and pension funds. Our push must be for international financial institutions, like the ADB and World Bank, to use guarantees and blended finance to enable higher levels of private funds to flow into countries in the Global South, particularly India," he added.
To facilitate this, Kant said India must establish robust financial systems, such as escrow accounts, to guarantee payments to investors, preventing situations where private companies have to resort to legal action to receive payments from discoms.
He stressed the need for India to focus on producing green hydrogen and decarbonizing hard-to-abate sectors like steel, cement, and transport. This requires mandates for discoms to purchase renewable energy and for the private sector to move to green hydrogen.
Kant called for improvements in India's energy infrastructure, including smart grids, smart meters, and green energy corridors, to support its renewable energy ambitions.
He said that both pump and battery storage are critical for the future of renewable energy, especially for electric mobility and long-distance transport powered by green hydrogen.
According to the Central Electricity Authority, India will need 27 GW of battery storage capacity by 2030 to meet its renewable energy targets.
Kant also said India laid the roadmap for tripling renewable energy and doubling energy efficiency during its G20 leadership, else "COP would have found it very difficult" to achieve consensus on this.
A COP (Conference of the Parties) is convened under the UN Framework Convention on Climate Change.
According to the International Energy Agency, tripling global renewable energy capacity and doubling energy efficiency is crucial to limiting the average temperature rise to 1.5 degrees Celsius.
Kant said that this year, the G20 and COP (UN meetings will occur around the same time, making it difficult for G20 decisions to directly influence COP.
However, Kant said the G20 should continue advocating for more climate action, especially in terms of climate finance and technology from developed countries.