India Needs Strong Regulatory Push to Achieve 500 GW Non-Fossil Energy Target by 2030: CRISIL

The government has set an ambitious target of achieving 500 gigawatts of non-fossil fuel-based power generation capacity by 2030. This non-fossil fuel capacity includes sources such as solar, wind, biomass, waste-to-energy, and hydropower projects. In a statement issued by industry body FICCI, Ashish Mittal, Director (Energy and Commodities), CRISIL, said, "Achieving India's 500 gigawatts non-fossil energy target requires a coordinated regulatory framework at the national and state levels that provides long-term investor confidence."

Mittal said at FICCI's India Power and Energy Storage Conference on Wednesday that cap-and-floor (financial futures and options) mechanisms, project viability financing (PVGF), and storage-as-a-service (SaaS) models will play a key role in reducing investment risks and attracting private capital at the scale India needs. The government should prioritize these aspects to achieve its objectives.

SBI Deputy Managing Director Ashok Sharma said that energy storage is a capital-intensive sector, with batteries accounting for a significant portion of project costs. He added that financing structures need to be developed with consideration for the unique risk and revenue profile of these assets.

The two-day FICCI conference, attended by policymakers, regulators, and top industry officials, focused on developing a roadmap for the energy sector, which is grappling with the complexities of integrating renewable energy and managing thermal assets. The major challenges faced by the industry include delays in signing of power purchase agreements (PPAs) for projects for which tenders have been issued, non-availability of necessary approvals/permissions for the projects in time, among other issues.