India's existing power generation portfolio is the world's third-largest at nearly 360 GW, and S&P Global Market Intelligence data shows another 203 GW of planned capacity.
As part of India's long-term decarbonization effort, Prime Minister Narendra Modi has pledged to add 500 GW of nonfossil generating resources by 2030.
BloombergNEF on June 22 estimated that India would need investments totaling $223 billion to meet the 2030 target.
S&P Global Ratings in an April report questioned whether the 2030 target is achievable. Ratings noted that although India has been adding renewables at a rate of about 10 GW to 15 GW annually, the country will not make a 2022 target of 175 GW.
"The addition of new capacity will need to rise by at least double for India to achieve 50% generation from renewables by 2030," Ratings said, adding that the country "lacks comprehensive energy transition policies and a clear commitment to phase out of coal."
Ratings said India will also need significant investment in expanding its transmission and distribution grid. In all, about $500 billion in new spending will be required by 2030.
India is both the world's second-largest producer and second-largest consumer of coal, according to the U.S. Energy Information Administration. Coal fuels about 62%, or 224 GW, of the country's existing power generation fleet. Hydroelectric resources power another 15%, or 53 GW, of existing resources.
The country's planned resources include 38%, or 77 GW, of coal-fired infrastructure, with another 31%, or 64 GW, to come from hydro sources, according to Market Intelligence data.
Power Grid Corp. of India Ltd., majority-owned by the Indian government, runs the nation's high-voltage transmission system and has interconnected several regional systems. The grid features several 800-kV ultra-high-voltage, direct-current lines running more than 1,000 miles each.
NTPC Ltd. is India's largest power generator, owning nearly 18% of the country's operating capacity. Its assets include India's largest power plant, the 4,760-MW coal-fired Vindhyachal Super Thermal Power Station in Madhya Pradesh, comprising 13 units built between 1987 and 2015. NTPC is 51% government-owned.
Counting both operating capacity and development projects, Nuclear Power Corp. Of India Ltd. owns the country's nuclear plants and is India's second-largest owner of generating capacity, according to Market Intelligence data. India's largely homegrown nuclear industry is based mostly on pressurized heavy water reactors. One 700-MW unit at the Kakrapar Nuclear Plant in Gujarat began operating in January 2021, joining two from the mid-1990s. A fourth unit is under construction.
Government-owned NHPC Ltd. operates and develops hydroelectric assets and is India's third-largest owner of combined operating and planned generating capacity. Its largest operating asset is the 1,000-MW Indira Sagar Hydro Plant on the Narmada River in Madhya Pradesh.
Private companies are invested in India's utilities sector as well. According to Market Intelligence data, the largest by both operating and planned generation capacity is Adani Power Ltd., a division of the Ahmedabad-based Adani Group conglomerate, which owns and operates coal-fired power plants. A separate division, Adani Green Energy Ltd., operates and develops wind and solar capacity.
On June 14, France-headquartered oil major TotalEnergies SE announced the acquisition of a minority interest in another Adani business to support green hydrogen development in India. TotalEnergies previously acquired an interest in Adani Green Energy and a separate interest in a portfolio of solar projects.
India has begun to explore its offshore wind potential, attracting the interest of foreign companies. In February, a unit of Mumbai-based private power producer Tata Power Co. Ltd. and German energy company RWE AG signed a memorandum of understanding to explore the joint development of offshore wind facilities. India has set a goal of obtaining 30 GW from offshore wind by 2030.
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