The country aims to reach 500 GW of renewable energy by 2030.

India will need up to $385b to meet its energy transition goals specifically for the power sector, backed with consistent policy support, according to a report by Moody’s.

In a report, Moody’s said that India will have to secure around $190b to $215b of investment over the next seven years to achieve its target of 500 gigawatts of renewable energy capacity by 2030.

To support the capacity growth, India will also need another $150b to $170b of investment for electricity transmission and distribution, and energy storage.

Abhishek Tyagi, a Moody's Vice President and Senior Credit Officer, said the sizeable project pipeline will keep the financial leverage of renewable energy firms it rate high over the next two to three years, but the leverage of government-related issuers will stay moderate due to strong balance sheets.

"We expect the strong growth in India's renewable energy capacity to continue, although coal will remain a major source of electricity generation over the next 8-10 years," Tyagi added.

Moody’s noted that the country was able to raise its renewable energy mix to around 43% by the end of fiscal year 2024 ending in March. on the back of strong policy support.

Continuing the support will enable India to make significant progress toward its 2030 transition targets and net-zero goals by 2070.