Mobilizing Finance Key to Achieving 500 GW Renewable Energy by 2030: Union Minister Pralhad Joshi

Union Minister for New & Renewable Energy, Pralhad Joshi, emphasized the crucial role of financing in achieving India’s target of 500 GW renewable energy capacity by 2030. Speaking at the National Workshop on Mobilizing Finance for Renewable Energy, organized by the Ministry of New & Renewable Energy (MNRE) in Mumbai, he urged financial institutions and policymakers to ensure accessible funding for the sector. Minister of State for MNRE, Shripad Naik, also addressed a press conference held alongside the workshop.

Key Highlights of the Workshop

Joshi stated that the idea for the workshop stemmed from a review meeting chaired by Prime Minister Narendra Modi, which focused on accelerating flagship schemes like PM Surya Ghar and PM-KUSUM. He noted that as India aims to become the world’s third-largest economy, its energy demand is set to double, necessitating a rapid scale-up of renewable energy alongside thermal power for a stable and resilient energy supply.

Reaffirming India’s commitment to achieving Net Zero emissions by 2070 and 500 GW of non-fossil fuel-based capacity by 2030, Joshi called on financial institutions to align their lending policies with the country’s renewable energy goals. He also warned that carbon-intensive industries would face declining export opportunities in the future.

Highlighting India’s progress, he pointed out that renewable energy capacity has already reached 222 GW. He cited a significant reduction in solar tariffs, noting a recent bid in Madhya Pradesh at ₹2.15 per unit compared to ₹11 per unit earlier. However, he stressed that battery storage solutions remain essential for large-scale renewable deployment.

Discussing decentralization in energy generation, Joshi emphasized that schemes like PM-KUSUM and PM Surya Ghar empower farmers to become energy providers while reducing transmission losses. He urged banks to simplify financing processes, especially for rooftop solar projects, and called for a Renewable Energy Financing Obligation, akin to Renewable Purchase Obligations (RPOs) for distribution companies.

On India’s advancements in green hydrogen, Joshi stated that the country has already secured major export orders and is ahead of several developed nations in this field. He highlighted growing global investor interest in India’s clean energy sector, attributing it to the country’s skilled workforce and industrial capacity.

The minister further noted that Prime Minister Modi has directed engagement with global financial institutions to attract renewable energy investments. He cited India’s success in securing commitments worth ₹34.5 lakh crore at a recent global renewable energy summit in Gandhinagar. Stressing the urgency of the energy transition, he described PM Surya Ghar as a national movement and called on financial institutions to streamline lending processes, reduce compliance burdens, and adopt a more supportive approach to clean energy financing.

Minister of State for Power and MNRE, Shripad Naik, estimated that achieving 500 GW of renewable energy capacity by 2030 would require an investment of approximately ₹30 lakh crore, covering infrastructure, transmission, and storage systems. He urged stakeholders to adopt innovative financing models, introduce flexible lending terms, and prioritize green investments.

MNRE Secretary, Nidhi Khare, underscored the critical role of affordable finance, green bonds, and innovative funding models in driving India’s renewable energy transition.

Workshop Discussions

The National Workshop on Mobilizing Finance for Renewable Energy featured four key sessions addressing financing challenges in the sector:

• The first session examined the financing landscape for utility-scale renewable energy projects, discussing challenges faced by developers, banks, and NBFCs in securing funding. Topics included interest rates, risk perceptions, and potential solutions for financial institutions to support large-scale projects.
• The second session focused on financing emerging renewable energy technologies such as offshore wind, floating solar, and green hydrogen. Experts from NABARD and leading financial institutions discussed capital allocation strategies, policy interventions, and mechanisms to mitigate investment risks.
• The third session explored financing challenges for distributed renewable energy (DRE) applications, including rooftop solar, canal-top PV, and Agri-PV. Discussions covered financing constraints for startups, perceived investment risks, and policy support needed for scaling up these solutions.
• The fourth session addressed regulatory and capacity-building measures for banks and NBFCs, with discussions on RBI guidelines, sector-specific lending policies, and strategies to enhance financing for consumer-oriented renewable energy applications.

Stakeholders emphasized the need for improved regulatory frameworks, risk-sharing mechanisms, and financial instruments to unlock capital for India’s renewable energy ambitions.

Key Takeaways

The workshop concluded with several key insights, including the need for lower-cost financing, enhanced access to global climate funds, and improved risk-sharing mechanisms for emerging technologies. Participants also stressed the importance of strengthening public-private partnerships and expanding green financial instruments to support India’s clean energy transition.

Senior officials from major public and private sector banks, including State Bank of India, Union Bank of India, HDFC Bank, ICICI Bank, Bank of India, Bank of Baroda, Canara Bank, UCO Bank, IDFC Bank, IDBI Bank, AU Small Finance Bank, Axis Bank, Punjab National Bank, Indian Overseas Bank, Indian Bank, Central Bank of India, Punjab & Sind Bank, Jammu & Kashmir Bank, and Bank of Maharashtra, attended the event.

The workshop marked a significant step toward bridging financial gaps in India’s renewable energy sector, reinforcing the government’s commitment to a clean, sustainable, and financially inclusive energy future. Participants reiterated their commitment to mobilizing large-scale investments, ensuring energy security, economic growth, and environmental sustainability.