EY Highlights India's SDGs Aligned with Net Zero Targets
- Muhammad Ahmad
- Dec 2, 2024
- 2 min read
India's renewable energy capacity surges, aiming for 500 GW by 2030, as the country leads the global energy transition
India targets 50% non-fossil fuel capacity by 2030, driven by innovative technologies and bold policies
India has increased its non-fossil fuel capacity to 45% and is on track to produce 500 GW of renewable energy by 2030.
Measures like green hydrogen policies, EV incentives, and biofuel blending are accelerating decarbonization.
To meet climate and energy goals, $150-200 billion annual investments are needed.
India is reshaping its energy landscape by rapidly adopting renewable energy and sustainable policies. The country has expanded its renewable energy capacity fivefold, from 24 GW in 2014-15 to 136 GW in 2024-25, and achieved 45% non-fossil fuel-based capacity. Under its ‘Panchamrit’ framework, India is targeting 500 GW of renewable energy capacity by 2030, alongside a 45% reduction in emissions intensity by 2030 compared to 2005.
This transition is pivotal as India balances economic growth with environmental responsibility. Its energy strategy, built on decarbonization, renewable energy adoption, and technological innovation, reflects a commitment to sustainable development. However, achieving net zero by 2070 will require collaboration across sectors and significant investments to overcome persistent reliance on coal and rising energy demands.
Technical Focus
India’s energy market is profoundly transforming. Renewable energy, including solar, wind, and hydro, has become a cornerstone of this shift. The government has focused on diversifying the energy mix with initiatives such as
Green Hydrogen Mission: A $2.4 billion program to establish India as a global hub for green hydrogen by 2030.
Biofuel Mandates: Programs requiring 20% ethanol blending in petrol and 5% biomass co-firing in thermal power plants.
Nuclear Power Expansion: Plans to triple nuclear capacity to provide clean base-load power by 2031-32.
Despite the advancements, coal remains critical to India’s energy supply, comprising 59% of the primary energy mix in 2023. However, policies like the Carbon Credits Trading Scheme (CCTS) aim to foster a cap-and-trade emissions framework that aligns with international carbon markets.
India is also advancing sustainable transport by promoting electric vehicles and electrifying Indian Railways. The National Green Hydrogen Mission, offshore wind projects, and battery storage technologies are receiving fiscal support to ensure scalability. “India’s energy transition is transformative and inclusive, focusing on innovation and economic resilience,” said a senior policy official.
Investments remain a critical challenge, with $10 trillion required to meet net-zero targets by 2070. Yet, green bonds, sovereign funds, and private-sector collaborations offer hope for bridging the gap. India’s ambitious goals and strong policy backing position it as a global leader in energy transition, inspiring similar actions worldwide.