India needs greater support to achieve 2030 clean energy goals: Report

India is on track to meet its 2030 clean energy goals for solar power and battery energy storage systems (BESS), but immediate government support is needed to accelerate the deployment of offshore wind and green hydrogen (GH2), according to a new report.

 

The report, ‘Budgeting for Net Zero: Government Support Needed to Meet India’s 2030 Clean Energy Goals’, is jointly produced by the Center for Study of Science, Technology and Policy (CSTEP) and the International Institute for Sustainable Development (IISD).

 

It highlights that while solar PV and BESS are progressing well with the current levels of subsidies and policy initiatives, other emerging clean technologies require urgent intervention to bridge cost gaps and achieve competitiveness.

 

The report estimates that offshore wind faces the largest cost gap, with existing government support falling short of what is needed. To leverage India’s 71 GW offshore wind potential, additional support of about Rs 9,000 crore per GW (~$1.08 billion per GW) will be required.

 

Similarly, the cost gap for GH2 stands at Rs 2.8 lakh crore ($34 billion) until 2030, while electric two-wheelers need Rs 19,000 crore ($2.29 billion) during the same period.

 

In comparison, the report finds that financial support for solar PV and BESS is sufficient to meet their cost gaps by 2030. For solar PV, the cost gap amounts to Rs 14,500 crore ($1.76 billion), and for BESS, it is Rs 2,637 crore ($0.3 billion).

 

Green hydrogen (GH2) will not be cost-competitive with natural gas-based grey hydrogen until after 2050, as per the report. Current subsidies cover only 5 per cent of the cost gap and will run out before 2030.

 

Bridging the full cost gap would require nearly 0.96 per cent of GDP until 2030, with further support needed beyond this period. The high costs result in a poor benefit-cost ratio (BCR) of -0.24, as economic benefits are projected beyond the study period.

 

Given this, the government may need to revise GH2 targets set in 2020, aligning them with realistic timelines and increased financial support, including extending subsidy tenures.

 

The report underscores the critical role of both central and state governments in scaling up investments in clean technologies.

 

It emphasises that small but timely interventions can crowd in significant private investments, creating long-term economic and environmental benefits.

 

Achieving clean energy goals, it notes, will spur economic growth, generate jobs, and enhance public revenue while reducing greenhouse gas emissions and air pollution.

 

“Investing now in clean energy technologies, even for high-cost sectors like offshore wind and green hydrogen, will ensure India’s global competitiveness and long-term economic and environmental resilience,” said Anasuya Gangopadhyay, senior associate at CSTEP and co-author of the report.