India is making strides toward its 2030 clean energy goals, driven by its commitment to energy independence and sustainability. Yet, critical gaps persist in scaling up offshore wind. Significant gaps also exist in advancing electric vehicles (EVs) and green hydrogen (GH2), according to a new report.
The Central Government’s clean energy strategy aims to enhance energy security, reduce emissions, and drive industrial growth. Despite significant progress in some areas, the report emphasizes the urgent need for extra government support for emerging technologies.
SOLAR AND BATTERY STORAGE SYSTEMS: PROGRESS ON TRACK
The report Budgeting for Net Zero: Government Support Needed to Meet India’s 2030 Clean Energy Goals, comes from CSTEP and IISD. According to it, India’s efforts to scale solar PV and battery energy storage systems (BESS) are on track. Current government subsidies and policy frameworks are adequate to meet cost parity for these technologies by 2030.
Regulatory reforms and accelerated project auctions are necessary to sustain momentum in solar PV and BESS deployment. But, no additional financial support is needed to achieve these targets.
EMERGING TECHNOLOGIES FACE INVESTMENT GAPS
Emerging technologies like offshore wind and green hydrogen present transformative opportunities for India’s energy landscape but face significant cost gaps. Offshore wind requires immediate investment to tap into India’s 71 GW potential. Similarly, green hydrogen, a cornerstone of India’s energy transition, demands sustained support to reach cost competitiveness.
Swasti Raizada, Policy Advisor at IISD, highlights, “India’s clean energy ambition is remarkable. But, delivering on these goals needs bold investments. There is also a need for policy alignment.”
BRIDGING THE COST GAP: OFFSHORE WIND AND GREEN HYDROGEN
The report identifies offshore wind as having the largest cost gap, with current support measures falling short. To meet its clean energy targets, India requires an estimated INR 9,000 crore (~USD 1.08 billion) per GW for offshore wind deployment.
For green hydrogen, the cost gap until 2030 stands at INR 2.8 lakh crore (USD 34 billion). These figures highlight the urgent requirement for immediate investments. Continual funding is needed to bridge the disparity and achieve cost parity with traditional energy sources.
GOVERNMENT AND POLICY INTERVENTIONS: A CALL TO ACTION
India has made commendable progress in some areas. Yet, achieving its broader clean energy goals requires coordinated efforts from both central and state governments. Early investments in emerging technologies will attract larger private sector participation, amplifying the economic impact.
The report emphasizes the importance of policy reforms. It also highlights fiscal measures needed to support high-cost sectors like offshore wind and green hydrogen.
ECONOMIC AND ENVIRONMENTAL BENEFITS OF INVESTING IN CLEAN ENERGY
Investing in clean energy technologies offers multiple benefits, including economic growth, job creation, and increased public revenue. Additionally, it significantly reduces greenhouse gas emissions and air pollution, improving public health and environmental sustainability.
The report highlights that prioritizing clean energy technologies now will ensure India’s competitiveness in the global energy market.
THE ROAD AHEAD: ENSURING GLOBAL COMPETITIVENESS AND RESILIENCE
Achieving India’s clean energy goals by 2030 is not just an environmental imperative but also an economic opportunity. Investing in high-cost but transformative technologies like offshore wind and green hydrogen will solidify India’s position as a global leader in clean energy.
“Investing now in clean energy technologies will ensure India’s long-term resilience and competitiveness,” said Anasuya Gangopadhyay, Senior Associate at CSTEP.
