India’s Green Energy Boom: Investments Surge 83%, Set to Reach $16.5 Billion by 2024 on Path to 500 GW by 2030

India is poised to experience a substantial surge in investments in renewable energy projects, with estimates from the power ministry indicating an over 83% increase to approximately USD 16.5 billion by 2024. This aligns with India’s ambitious goal of achieving 500 GW of renewable energy by 2030, along with a commitment to reduce overall power generation capacity from fossil fuels to below 50%. Union Power and New & Renewable Energy Minister R K Singh have consistently emphasized that non-fossil fuel-based power generation could reach 65% by 2030, surpassing the targeted 50%.

In an interview with PTI, Singh projected a significant growth in renewable energy capacity, anticipating the addition of 25 GW in 2024, requiring an investment of about USD 16.5 billion. This surpasses the 13.5 GW added in 2023, with an investment of nearly USD 9 billion. Besides solar and wind energy, India has intensified its focus on green hydrogen to decrease reliance on fossil fuels, particularly diesel.

The National Green Hydrogen Mission, approved by the Union Cabinet in January, allocates Rs 19,744 crore for promoting green hydrogen production. In July, the Solar Energy Corporation of India invited bids for incentives to produce 4,50,000 tonnes of green hydrogen and 1.5 GW of electrolyser manufacturing facilities annually. Noteworthy participants in the bidding include Reliance Electrolyser Manufacturing, Adani New Industries, L&T Electrolysers, and Bharat Heavy Electricals.

The National Green Hydrogen Mission aims to establish India as a global hub for green hydrogen manufacturing, with an expected production capacity of 5 million metric tonnes per annum by 2030. The Ministry of Ports, Shipping, and Waterways has identified major ports like Deendayal, Paradip, and Tuticorin Ports for developing hydrogen hubs.

Singh highlighted that India currently has 7.8 million tonnes of green hydrogen capacity at various stages. The Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme, supported by Rs 17,490 crore, is designed to catalyze green hydrogen and electrolyser production, develop the ecosystem, and facilitate industrial decarbonization.

Industry experts, including Vineet Mittal and Rahul Munjal, expressed optimism about India’s commitment to environmental sustainability and the potential for the country to become a production hub for green hydrogen derivatives. The Central Electricity Authority’s vision for 2030 includes targets of 292 GW of solar, 100 GW of wind, and 18 GW of hydro, providing ample opportunities for diverse investments in the renewable energy sector. The Central Electricity Authority’s report also outlines the need for large-scale tenders and the promotion of green hydrogen usage through Green Hydrogen Consumption Obligations (GHCOs) in key industrial sectors. Girishkumar Kadam from ICRA highlighted the expected increase in renewable energy capacity to about 170 GW by March 2025, supported by significant tendering activity and the government’s 50 GW annual bidding trajectory.