India is on track to meet its 2030 clean energy goals: Report

While there is no cost gap for solar PVs and BESS, more support is needed for electric vehicles, offshore wind and green hydrogen

India is on track to meet its 2030 clean energy goals, without further financial investment, according to a new report released by the Center for Study of Science, Technology and Policy (CSTEP) and the International Institute for Sustainable Development (IISD). Regulatory reforms and accelerated auctions will keep the momentum going.

Titled, ‘Budgeting for Net Zero: Government Support Needed to Meet India’s 2030 Clean Energy Goals’, the report points out that thanks to government subsidies and policy support, the goals for solar PV and battery energy storage systems (BESSs) will be met. 

However, there needs to be more support for deployment of offshore wind, electric vehicles (EVs), and green hydrogen, in order for these emerging technologies to achieve cost competitiveness, found the report.

Addressing cost gaps

The biggest challenge in making clean and emerging technologies viable for at-scale use is making them cost efficient. That’s what the cost gap denotes – how much the cost of a technology needs to fall to be at similar levels with existing technologies, like coal-generated electricity for energy, and the cost of internal combustion engines (ICE) for vehicles.

The report finds that solar PV and BESS have enough funding to cover the existing cost gaps of ₹14,500 crore and ₹2,637 crore respectively till 2030. However, electric two wheelers need ₹19,000 crore, green hydrogen requires ₹2.8 lakh crore, and ₹ 5.1 lakh crore needs to be pumped in for offshore wind to meet 2030 targets. 

“India’s clean energy ambition is remarkable, and delivering on these goals will require bold investments and policy alignment. Emerging technologies like offshore wind and green hydrogen represent transformative opportunities for the country’s energy landscape but need sustained support to realize their potential,” said Swasti Raizada, policy advisor at IISD and co-author of the report. 

Investing more in clean energy

With a lofty target of 71 GW, offshore wind has the largest cost gap of around₹9,000 crore per GW, found the report. It found that distributing the support costs between public and private investors would increase GDP gains, and also efficiently allocate funding and resources, which would in turn bring down government spending. 

The report recommends adapting a new model where offshore wind is bundled with cheaper renewable energy sources initially so that there are more takers for offshore wind. 

For electric vehicles, the report found that without financial support, electric two-wheelers and cars would achieve cost parity by 2034, and e-buses by 2045. But with financial support involved, the goals can be achieved much earlier – for electric two wheelers and cars, it could be as soon as 2025, according to the report.

“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.

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