Renewable energy targets
Long term policy targets, either in the form of vision statements or legal commitments, usually serve as the harbinger of a planned sustainable energy transition. At the very least, targets indicate a political commitment for the long term where investors are comfortable to participate in a market. It helps in reducing political risks and facilitate easier access to affordable finance. More importantly, and as can be learnt from the countries who have more mature renewable energy markets, targets help build the infrastructure required to sustain high capacity addition of renewable energy. Several countries leading the renewable energy transition race today started their journey by setting long term but ambitious targets for their national energy landscape.
Ambitious renewable energy targets by India
India's Prime Minister set the track in 2015 by ramping up the renewable energy targets to 175 GW by 2022. This meant more than a fivefold jump from the renewable energy capacity of 35 MW in 2015. India's Nationally Determined Contribution subsequently extended this ambition to 40% of non-fossil fuels-based electricity generation capacity by 2030 (250–300 GW). It was estimated that this ambitious target would mobilise an investment of 189 billion dollars and bring about a drastic change in the composition of the country's power generating capacity. This target guided the planning process for the supporting infrastructure as well as the implementation of required incentives and taxes. The planning for the grid integration of this capacity included measures such as green energy corridors, grid operating reforms, and transport electrification, complemented by policy action on auctioning and contractual reforms to reduce investment risks.