Mumbai, June 4 (IANS) India will need massive investment to achieve its 2070 net-zero pledge as it balances energy security, affordability and transition, Moody’s Ratings said on Wednesday.
Achieving this pledge will necessitate substantial investment, particularly in the power sector, which is a material contributor to the nation’s carbon emissions.
Over the next decade, these investments are projected to constitute 2 per cent of real GDP for the electricity value chain, encompassing power generation, storage, transmission and distribution, the report mentioned.
The government’s plan to reach net-zero emissions by 2070 will be contingent upon a shift in the fuel mix from the current predominantly coal-fired power toward clean and renewable energy.
However, strong economic growth implies India will also expand its coal-based power generation capacity by 32-35 per cent (or around 70GW-75GW) over the next 10 years, even as it adds around 450GW of renewable energy over the same period.
“We expect the private sector to remain active in India’s renewable energy sector, while government-owned companies will also increase their role,” said Abhishek Tyagi, a Moody’s Vice President and Senior Credit Officer.
Solar and wind power will dominate new generation capacity additions over the next 20-25 years, with smaller nuclear and hydropower additions, he added.
Securing diverse sources of capital, including foreign investments (both debt and equity), will be crucial to bridge the funding gap for energy transition-related infrastructure.
Meanwhile, the government has planned sizeable capex under its ‘Maritime India Vision 2030’ to augment port capacity and infrastructure over the course of next few years.
Moody’s Indian affiliate ICRA expects cargo volumes to rise by 3-5 per cent in FY26, driven largely by the growth in the container, petroleum products and the fertiliser segment.
Apart from the traditional segments like transportation and energy within infrastructure space, data centre is emerging as a new hotspot for infrastructure investment.
ICRA expects significant investment pipeline of Rs 1.6-1.8 trillion in data centre (DC) capacity addition over next 5-6 years in India, supported by rapid digitalisation along with favourable policy measures.
–IANS
na/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
