A report was published on Wednesday that predicted that solar and wind power projects in India would bring in investments between $110 and $120 billion in the renewable energy sector in the coming years.
In a report backed by the government’s clean energy transition objectives and long-term net-zero aspirations, Colliers India estimated that the planned additions to solar and wind capacity by 2030 could open up a land aggregation and acquisition opportunity worth $10–15 billion.
At present, India’s renewable energy capacity stands at 251 GW, and an extra 270-300 GW is projected to be added by the end of the decade through solar and wind power.
With an additional 270-300 GW of solar and wind energy expected to be added by 2030, the sector is poised to enter its next phase of accelerated growth, according to Badal Yagnik, Chief Executive Officer and Managing Director of Colliers India. “India’s renewable energy capacity stands at 251 GW,” Yagnik stated.
Land acquisition and the development of industrial and warehousing infrastructure are two areas where the expansion is expected to create substantial opportunities for the real estate sector, according to the report.
Yagnik pointed out that increasing the use of renewable energy sources would help India’s decarbonisation initiatives and pave the way for the creation of new investment hubs and growth corridors, both of which are essential to long-term economic growth.
The report states that 51% of India’s installed power capacity comes from non-fossil fuel sources, which includes nuclear and renewable energy. This puts the country on track to reach its goal of 500 GW of non-fossil-based capacity by 2030.
In wind and solar power projects, the purchase and consolidation of land usually makes up around 10%-12% of the overall budget.
Private developers or nodal agencies backed by the government typically acquire land for solar projects. This is especially true for large solar parks. For wind energy projects, it is common practice to lease the land around the turbines and secure the land for the substations and other necessary infrastructure.
Renewable energy original equipment manufacturers (OEMs) are driving demand for industrial and warehousing facilities, according to the report.
Approximately three million square feet of industrial and warehousing space will be leased in 2025, according to Vimal Nadar, National Director and Head of Research at Colliers India. This figure is a fourfold increase from the previous five years.
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