India is set to see a surge in power demand and renewable energy build-out in the coming years and decades and assert itself as a clean energy powerhouse, if it boosts investments, U.S.-based clean energy think tank Rocky Mountain Institute (RMI) said in a new report on Monday.
India’s energy demand is expected to triple by 2050, as the economy grows more than the global average, urbanization expands, and the middle class numbers rise. The need for air-conditioning will also boost Indian power demand going forward.
RMI’s research highlighted how India could be moving away from fossil fuels and import dependence to meet growing energy demand with clean technologies.
India’s expected power demand surge is “an unparalleled opportunity to build right the first time. Unlike in the United States or Europe, nearly all of India’s midcentury building stock has yet to be built,” RMI’s report says.
Despite the growth so far and the enormous opportunity ahead, India accounts for just 4% of global clean energy investment, according to the RMI report.
“If the finance catches up, India’s transition could save more emissions by midcentury than Europe and North America combined — while charting the way for emerging economies around the world,” the research noted.
India is at risk of missing its ambitious clean energy targets if it doesn’t significantly boost investment in renewable energy, which is only a fifth of what is required annually through 2030, clean energy think tank Ember said earlier this year.
India’s investments in renewable power generation and transmission were estimated at $13.3 billion for the fiscal year 2024.
While this figure is a massive 40% jump from the previous fiscal year, it is still far behind the $68 billion annual investment required to achieve India’s goal of having 500 gigawatts (GW) of renewable energy capacity installed by 2030 and more than 600 GW by 2032, Ember said.
India will need a total capital flow of $300 billion by 2032 to remain on track to meet its renewable capacity commitments.
By Charles Kennedy for Oilprice.com
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