Capital flows underpinning India’s energy transformation

According to the report 'Capital Flows Underpinning India's Energy Transformation' released by Institute for Energy Economics and Financial Analysis (IEEFA), India needs an Investment of USD 500 Billion to reach its target of 450 Gigawatts (GW) of Renewable Energy (RE) by 2030. With India recording an 18% year-on-year decline to a new record low solar tariff of Rs1.99/kWh with zero inflation indexation – which translates into a levelised cost of energy (LCOE) of below Rs1.30/kWh – solar continues on its strongly deflationary trajectory. Even the pandemic is unable to stop this momentum, with solar module costs dropping 20% year-on-year.