Recently, Moody launched a report related to Renewable Energy that India needs an investment of $190 billion-$215 billion over the next seven years to achieve their target of 500 GW of renewable energy capacity by 2030. The country also needs investment of $150 billion-$170 billion for electricity transmission and distribution infrastructure as well as energy storage.
According to the data till March 31, India’s total renewable energy capacity has reached 144 GW which also includes large hydro capacity. It is also predicted that there will be a boost in renewable energy under Prime Minister Narendra Modi’s third term.
Abhishek Tyagi, Vice President and Senior Credit Office of Moody’s said that many projects will keep renewable power companies in major debt for the next two to three years, which is very bad for their credit. However, companies connected to the government will have moderate debt because they are financially stable. He also said that the nation will grow its renewable energy capacity and coal will remain an important source for power supply for 8-10 years.
According to Moody’s ratings, companies of India’s infrastructure will invest in energy transition because of the nation’s strong economic growth. Government policies, programs, and stable regulations will help in maintaining credit quality. Moody also states that ongoing policy support is required for the country to achieve its 2030 energy transition goals and 2070 net zero emission target.
Support from the government and its policies has increased India’s renewable energy and power supply to 43% in the years 2023-24. Policy support should continue for a significant process to achieve success in its 2030 and 2070 targets.
Investment Information and Credit Rating Agency (ICRA), an affiliate of Moody in India, predicts that expenditure on transportation, and infrastructure projects which includes roads, ports, and airports will go high in the upcoming years. These increases will be made by the government and their support, rising spending, and many planned projects.
ICRA, which is connected to Moody’s in India, predicts that spending on transportation infrastructure projects like roads, ports, and airports will go up in the next few years. This increase will be helped by strong government support, more money being spent, and many planned projects.
