Mumbai, June 12 (IANS): India's target of 500 gigawatts (GW) of renewable energy capacity by 2030 will require $190 billion-$215 billion of investment over the next seven years, a Moody’s report said on Wednesday, adding that solid growth in India's renewable energy capacity will continue.

Another $150 billion-$170 billion of investment will be required for electricity transmission and distribution as well as energy storage, the report stated.

Government policies and stable regulatory frameworks will support credit quality.

"The sizeable pipeline of announced projects will keep the financial leverage of renewable power companies rated by Moody’s high over the next 2-3 years – a credit negative – but the leverage of government-related issuers will remain moderate over the same period, given their relatively strong balance sheets," said Abhishek Tyagi, a Vice President and Senior Credit Officer with Moody’s.

Strong policy support has helped India increase the share of renewable energy in its power capacity mix to around 43 per cent in fiscal 2023 (which ended March 2023) and fiscal 2024. Continued policy support will help the country make significant progress toward its 2030 transition targets and 2070 net-zero goals, the report mentioned.

"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 said.

Union Minister for New and Renewable Energy and Consumer Affairs, Food and Public Distribution Pralhad Joshi said on Tuesday the government is committed to advancing renewable energy initiatives to meet the country’s rising energy demands and environmental goals. "Achieving self-reliance in terms of fuel and energy by 2047 is our conviction," he said.