At COP26, Modi outlined a net zero emissions target by 2070 for India.
The new announcements put forth a clear ambition of the Modi government to tackle climate change more aggressively. India is targeting to increase its low-carbon power capacity to 500 gigawatts (GW) by 2030 and meet 50 per cent of its total energy requirements by 2030.
Fitch Soutions said "We highlight that these pledges pose a mounting upside risk to our forecasted 313 GW of installed low carbon power capacity, including nuclear, hydro and non-hydropower renewables by 2030," Non-hydropower renewables will make up the vast majority, 83 per cent, of this growth highlighting the significance of the wind and solar sub-sectors.
"We highlight that the market will not reach the Modi government's previous plans to develop 175 GW of renewables capacity by 2022 and will fall short with just 116 GW installed by end 2021.
"We also highlight increased risks to the successful continuation of renewables auctions as well as the development of recently selected projects within those tenders," it said. We are bearish on the prospects of this being sufficient to ensure the smooth integration of renewables capacity into the grid,