Mobilising Finance Critical for 500 GW RE Expansion, Says Union Minister

"Mobilising finance is key to achieving 500 GW renewable energy capacity by 2030," said Union Minister for New and Renewable Energy Pralhad Joshi at the National Workshop on Mobilising Finance for Renewable Energy in Mumbai.

Speaking on the occasion, he highlighted India’s commitment to achieving Net Zero by 2070 and reaching 500 GW of non-fossil fuel-based capacity by 2030. He also urged financial institutions to ensure affordable and accessible funding for clean energy projects, stressing that financing is the backbone of India's energy transition. The workshop, organised by the Ministry of New and Renewable Energy (MNRE), brought together Minister of State Shripad Naik, policymakers, and financial leaders to explore innovative financing mechanisms and address barriers to scaling up investments in renewable energy.

He noted that with India poised to become the third-largest economy, energy demand is set to double in the coming years. While renewable energy will be the primary driver of this growth, thermal power will continue to play a role until energy storage solutions become more viable.

To ensure steady financing for clean energy, he proposed a 'Renewable Energy Financing Obligation', similar to the 'Renewable Purchase Obligation' (RPO) imposed on power distribution companies. This initiative would mandate financial institutions to allocate a portion of their lending portfolio exclusively for renewable energy projects, ensuring a steady flow of capital into the sector.

India’s renewable energy sector has witnessed unprecedented growth, with the country’s installed clean energy capacity reaching 222 GW. A significant milestone has been the sharp decline in solar tariffs, with the latest bids in Madhya Pradesh settling at INR 2.15 per unit, compared to INR 11 per unit a decade ago.

However, energy storage remains a critical bottleneck. Joshi emphasised the need for large-scale investments in battery storage technologies to maintain grid stability and enhance the share of renewables in the energy mix. Developing cost-effective and scalable storage solutions will be key to sustaining India's clean energy transition.

Decentralised solar energy is expected to play a vital role in India's clean energy roadmap. Under the PM Surya Ghar initiative, the government aims to accelerate the adoption of rooftop solar power nationwide.

Joshi stressed the need for simplified bank financing to enable homeowners and businesses to transition to solar energy with ease. "PM Surya Ghar is not just a scheme—it is a national movement," he said, urging citizens to become "Urjadata" (energy providers) and contribute to India's renewable energy expansion.

India continues to attract strong investor confidence in its clean energy sector. Joshi announced that INR 34.5 lakh crore worth of investment commitments were secured during a global renewable energy summit in Gandhinagar, reflecting India’s strategic leadership in the global renewable energy landscape. He also highlighted India's growing capabilities in green hydrogen (GH2), with major international export orders already in the pipeline, positioning the country as a key player in the emerging hydrogen economy.

Minister of State Shripad Naik emphasised that achieving 500 GW renewable energy capacity by 2030 requires an estimated INR 30 lakh crore in investments. These funds are crucial for infrastructure development, grid expansion, and energy storage integration. Naik called for the expansion of green finance instruments and the introduction of risk-sharing mechanisms to attract global investors and accelerate renewable energy projects. Strengthening financial backing will be pivotal in realising India’s ambitious energy goals.

The workshop featured high-level discussions on financing challenges, emerging technologies, and strategies for scaling up investments in distributed renewable energy (DRE) solutions like rooftop solar, Agri-PV, and canal-top solar projects. Participants discussed aligning RBI lending policies with clean energy goals to create a more favourable investment climate.

Joshi urged Indian banks to streamline lending policies and foster public-private partnerships (PPPs) to mobilise large-scale renewable energy investments.

The event concluded with commitments from SBI, HDFC Bank, ICICI Bank, Axis Bank, and IDBI Bank to enhance lending access for renewable projects. Strengthening financial backing will be pivotal in realising India’s ambitious energy goals, reinforcing the country’s position as a global leader in clean energy.