India Needs ₹32 Lakh Crore for 500 GW Renewables

India seeks ₹32 lakh crore to achieve 500 GW renewable energy by 2030, urging streamlined lending and investments.

Union Minister Pralhad Joshi emphasized the central requirement of financing to achieve India's aggressive target of having a 500 GW renewable energy capacity by 2030, i.e., that ₹32 lakh crore would be required. At a national workshop on finance of renewable energy, he exhorted financial institutions to de-risk lending and play a facilitatory role.

The workshop, organized by the Ministry of New and Renewable Energy, focused on utility-scale project financing, new technology, and policy intervention. Key areas were risk-sharing instruments, credit enhancement, and new financial products.

Joshi highlighted India's commitment to net zero carbon emissions by 2070 and called for increased public sector lender participation. He also called for leveraging pension funds, insurance, and corporate bonds in the renewable space and addressing project risks such as transmission delays and land.

The minister pointed out that India has already reached 222 GW of renewable capacity and is witnessing increasing investor interest. He called for banks to make financing for rooftop solar projects easier and suggested a renewable energy financing obligation, akin to purchase obligations for power distribution companies.

Discussing green hydrogen, Joshi said India has secured major export orders and is ahead of several developed nations. He reiterated Prime Minister Narendra Modi’s directive to engage global financial institutions to boost clean energy investments, emphasizing that transitioning to renewable energy is a necessity.

The minister also urged the financial institutions to support important schemes such as PM Surya Ghar and PM-KUSUM, ensuring smoother disbursements of loans and addressing funding issues. He pointed out that India has to mobilize ₹5-6 lakh crore a year to achieve its 2030 renewable energy target.