India’s Renewable Energy Future Securing Finance For 500 GW By 2030

Union Minister for New & Renewable Energy Pralhad Joshi emphasized that mobilizing finance is crucial for achieving India’s target of 500 GW renewable energy capacity by 2030. He was speaking at the National Workshop on Mobilizing Finance for Renewable Energy organized by the Ministry of New and Renewable Energy in Mumbai. He stressed the need for collective efforts from financial institutions and policymakers to ensure accessible funding for the renewable energy sector. Along with Minister of State for New & Renewable Energy Shripad Naik, he also addressed a press conference on the sidelines of the workshop.

The idea for the workshop emerged after a review meeting chaired by Prime Minister Narendra Modi, where discussions focused on accelerating key initiatives such as PM Surya Ghar and PM-KUSUM. The Minister highlighted that as India moves towards becoming the third-largest economy, energy demand is expected to double. He emphasized that renewable energy must be scaled up alongside thermal power to ensure a stable and resilient electricity supply.

India is committed to achieving net-zero emissions by 2070 and increasing its non-fossil fuel-based energy capacity to 500 GW by 2030. The Minister urged financial institutions to align their lending policies with the country’s renewable energy goals. He also pointed out that industries relying on carbon-intensive processes will face reduced export opportunities in the coming years. He noted that India has already made significant progress in renewable energy, with installed capacity reaching 222 GW. Solar tariffs have dropped substantially, with a recent bid in Madhya Pradesh reaching ₹2.15 per unit, compared to ₹11 per unit in earlier years. However, he underlined the importance of battery storage to support large-scale renewable energy integration.

Decentralization plays a key role in India’s renewable energy strategy. The Minister explained that schemes like PM-KUSUM and PM Surya Ghar enable farmers to generate their electricity, reducing dependence on centralized power grids and minimizing transmission losses. He urged banks to simplify financing procedures for rooftop solar projects and proposed the introduction of a Renewable Energy Financing Obligation to ensure dedicated funding, similar to Renewable Purchase Obligations for discoms.

India is also making strides in green hydrogen, with significant export orders already secured. The Minister highlighted India’s leadership in this sector and noted that global investors view the country as a preferred destination for clean energy manufacturing. Prime Minister Modi has directed engagement with global financial institutions for renewable energy investments, and India has recently secured commitments worth ₹34.5 lakh crore during a global RE summit in Gandhinagar.

Union Minister of State for Power and New & Renewable Energy Shripad Naik said that achieving the 500 GW target will require an estimated investment of ₹30 lakh crore. He urged stakeholders to explore innovative financing models and provide flexible lending options to accelerate the energy transition.

The workshop included four key sessions addressing financing challenges in different areas of renewable energy. The first session focused on financing utility-scale renewable energy projects, discussing challenges such as interest rates and risk perceptions. The second session explored funding for emerging technologies like offshore wind, floating solar, and green hydrogen. The third session examined financing distributed renewable energy solutions, including rooftop solar and Agri-PV. The final session focused on regulatory measures and capacity building for banks and NBFCs.

Key takeaways included the need for lower-cost financing, improved access to global climate funds, and enhanced risk-sharing mechanisms. Participants also stressed strengthening public-private partnerships and expanding green financial instruments. The event concluded with a commitment from all stakeholders to work towards innovative financing models and policy frameworks to unlock large-scale renewable energy investments.