India will require $223 billion of investment between 2022 and 2029 in order to meet its goal of wind and solar capacity installations by 2030, according to a report by research company BloombergNEF (BNEF).

In 2020 and 2021, new solar and wind power projects together have secured $17.4 billion of asset financing. But over the next eight years, an average of $27.9 billion is required annually to meet the 2030 targets.

“Scaling up financing to meet 2030 goals requires independent power producers to tap into new or underutilised sources of capital.

This could be revolving construction debt, infrastructure investment trusts, and funding from retail investors, insurance companies and pension funds,” said Rohit Gadre, an analyst at BNEF’s India research team.

The report, however, pointed out that power purchase negotiations, land acquisition and payments delays are among the key risks cited by the industry.

In the short term, rising interest rates, a depreciating rupee and high inflation will create challenges.