+
India's $15 Trillion Net-Zero Investment Challenge by 2070
ECONOMY & POLICY

India's $15 Trillion Net-Zero Investment Challenge by 2070

A joint report by the Federation of Indian Chambers of Commerce & Industry (FICCI) and Deloitte on India's energy transition has projected a total expenditure of $15 trillion to achieve net-zero emissions in India from 2022 to 2070.

While the report equated the average annual spend at $300 billion, it pointed out that a significantly higher outlay will be required in the initial years, for which it recommended innovative financing models to attract private investment into the market and bridge the gap in funding.

Stating that India's energy transition is anchored by the three fundamental pillars of grid decarbonisation, industrial decarbonisation and transport transition; the report said that these pillars collectively form the foundation of India's energy transition journey and can address around 90 percent of India?s current emissions.

Projecting India?s final energy demand to double from 2020 to 2070, the report indicated that aggressive energy efficiency measures are expected. The industry sector is likely to contribute 65 to 70 percent to the total energy demand and the passenger and freight demand expected to increase by three to five times by 2070 in the transport sector. However, the report said that energy demand will remain moderate due to a high uptake of Electric Vehicles (EVs) with higher energy conversion efficiency.

The share of electricity in the final energy mix is expected to increase from 18 percent in 2020 to over 50 percent by 2070. According to the report, 2,000 GW of grid-scale renewable energy (wind + solar) and another 1,000 GW of renewable energy for green hydrogen production will be required to achieve net-zero emissions by 2070 and decarbonise grid operations. This will translate into a capacity addition of 50 GW/year of renewable energy in the future from a historical average of 15-20 GW annually.

Stating that industrial decarbonisation will be crucial to abate 30 percent of energy-related emissions, the report pointed out that hydropower and nuclear power will play a critical role in the supply-side transition. It added apart from harnessing its full technically feasible hydro potential of 140 GW and a rise in nuclear capacity, India may need to import hydropower from Nepal and Bhutan.

A joint report by the Federation of Indian Chambers of Commerce & Industry (FICCI) and Deloitte on India's energy transition has projected a total expenditure of $15 trillion to achieve net-zero emissions in India from 2022 to 2070. While the report equated the average annual spend at $300 billion, it pointed out that a significantly higher outlay will be required in the initial years, for which it recommended innovative financing models to attract private investment into the market and bridge the gap in funding. Stating that India's energy transition is anchored by the three fundamental pillars of grid decarbonisation, industrial decarbonisation and transport transition; the report said that these pillars collectively form the foundation of India's energy transition journey and can address around 90 percent of India?s current emissions. Projecting India?s final energy demand to double from 2020 to 2070, the report indicated that aggressive energy efficiency measures are expected. The industry sector is likely to contribute 65 to 70 percent to the total energy demand and the passenger and freight demand expected to increase by three to five times by 2070 in the transport sector. However, the report said that energy demand will remain moderate due to a high uptake of Electric Vehicles (EVs) with higher energy conversion efficiency. The share of electricity in the final energy mix is expected to increase from 18 percent in 2020 to over 50 percent by 2070. According to the report, 2,000 GW of grid-scale renewable energy (wind + solar) and another 1,000 GW of renewable energy for green hydrogen production will be required to achieve net-zero emissions by 2070 and decarbonise grid operations. This will translate into a capacity addition of 50 GW/year of renewable energy in the future from a historical average of 15-20 GW annually. Stating that industrial decarbonisation will be crucial to abate 30 percent of energy-related emissions, the report pointed out that hydropower and nuclear power will play a critical role in the supply-side transition. It added apart from harnessing its full technically feasible hydro potential of 140 GW and a rise in nuclear capacity, India may need to import hydropower from Nepal and Bhutan.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train’s Surat-Vapi Section Set for 2027

The first section of the Mumbai-Ahmedabad Bullet Train corridor, linking Surat and Vapi, is targeted to begin services in 2027. Construction is expected to be completed by December 2026, while Railway Minister Ashwini Vaishnaw has indicated that an inauguration could take place around the middle of 2027. The National High Speed Rail Corporation (NHSRCL) said the train being manufactured in India is expected to reach the tracks around April or May 2027. The train will undergo extensive testing before the section is opened for passenger services. The project began construction in 2021 and includ..

Next Story
Infrastructure Transport

Indian Railways Approves Four Projects Worth Rs. 7.36 bn Across Four States

Indian Railways has approved four projects with a combined value of Rs. 7.36 bn across Uttar Pradesh, Maharashtra, Andhra Pradesh and Gujarat. The programme covers train protection, signalling, electric traction supply and a road overbridge, with each project assigned to a different railway zone. In Uttar Pradesh, Rs. 2.52 bn has been approved to extend the Kavach 4.0 automatic train protection system across 607.7 km in the Lucknow Division of North Eastern Railway. The system monitors train movements and can apply the brakes if a driver fails to observe a signal or exceeds a safe speed. The w..

Next Story
Infrastructure Urban

Chandru Raheja Sells 1.49% Stake in Mindspace REIT for Rs. 5 bn

Billionaire Chandru Lachmandas Raheja has sold a 1.49 per cent holding in Mindspace Business Parks REIT for Rs. 5 bn through a bulk deal on the BSE. The transaction involved 9.9 mn units and was executed at an average price of Rs. 505 per unit, according to exchange data. Following the sale, units of Mindspace Business Parks REIT were trading 0.18 per cent lower at Rs. 504.05 on Tuesday. Exchange data did not identify the buyers involved in the transaction. Raheja is the chairman of real estate company K Raheja Corp. The sale involved 99,00,990 units, representing 1.49 per cent of the Mumbai-b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code