Rating agency Moody’s Investor Service outlined India as having one of the most ambitious renewable energy goals across the world in its sector report published on Tuesday.
“India, Taiwan and Saudi Arabia have the most ambitious goals, underpinned by attractive incentives,” the report said, further adding: “India (Baa3 negative) will need to maintain its policy support to reach its 2022 goal.”
The Centre hopes to achieve a capacity of 175 GW worth of renewable energy by the end of 2022, which expands to 450 GW by 2030. As of January 2021, this number stands at 92.5 GW, according to the Central Electricity Authority (CEA).
“While the goal is very ambitious, India has implemented a number of steps to encourage renewables, such as competitive auctions awarding long term tariffs, renewable purchase obligations for utilities and dispatch preference,” Moody’s said.
Pointing out wide-ranged issues afflicting the power sector, the report said that the delay of payments by the state distribution companies (discoms) and curtailment issues remain a big worry moving forward.