(Commonwealth_India) Union Minister for New and Renewable Energy, Pralhad Joshi, highlighted the critical importance of financing in meeting India’s ambitious renewable energy goals, especially the target of achieving 500 GW of renewable energy capacity by 2030. Speaking at the National Workshop on Mobilizing Finance for Renewable Energy, organized by the Ministry of New and Renewable Energy (MNRE) in Mumbai, Joshi emphasized that financial institutions and policymakers must work together to ensure that accessible funding is available to support the growth of the renewable energy sector. Alongside him, Shripad Naik, the Minister of State for MNRE, addressed a press conference in conjunction with the workshop, stressing the need for collective action.
Joshi shared that the workshop concept was conceived after a review meeting chaired by Prime Minister Narendra Modi, which focused on accelerating flagship schemes like PM Surya Ghar and PM-KUSUM. He pointed out that as India’s economy grows to become the third-largest in the world, its energy demand is expected to double. The situation means that India must scale up its renewable energy capacity rapidly to keep pace with this growth, alongside thermal power, to ensure 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 energy capacity by 2030, Joshi called on financial institutions to align their lending policies with the country’s renewable energy goals. He cautioned that industries heavily reliant on carbon emissions will face challenges in the future, particularly as the global market increasingly demands cleaner energy alternatives. He underscored that, despite the obstacles, India’s renewable energy sector has already made substantial progress, with its renewable energy capacity having reached 222 GW.
Joshi pointed out the impressive reduction in solar energy tariffs, with a recent bid in Madhya Pradesh costing just ₹2.15 per unit compared to ₹11 per unit in the past. Even though these changes are a big step forward, Joshi stressed that effective battery storage solutions would still be needed for large-scale deployment of renewable energy to fix problems with intermittent power and make sure a steady supply of energy.
The minister also highlighted the role of decentralization in energy generation. Programs such as PM-KUSUM and PM Surya Ghar empower farmers to generate their energy, contributing to a reduction in transmission losses. He urged banks to simplify their financing processes, particularly for rooftop solar projects, and called for the establishment of a Renewable Energy Financing Obligation. This would function similarly to the Renewable Purchase Obligations (RPOs) that distribution companies are already required to meet, encouraging further investment in renewable energy.
On the topic of green hydrogen, Joshi was optimistic about India’s potential. He shared that the country has already secured major export orders and is ahead of many developed nations in this emerging field. This, he believes, is attracting significant interest from global investors, who are keen to capitalize on India’s skilled workforce and industrial capacity in the clean energy sector.
Joshi also noted that Prime Minister Modi has directed the government to engage with global financial institutions to attract investments in the renewable energy sector. The results of this outreach have been evident, as India successfully secured ₹34.5 lakh crore in commitments at a recent global renewable energy summit in Gandhinagar. With clean energy financing being an urgent priority, Joshi described PM Surya Ghar as a national movement, urging financial institutions to streamline lending processes, reduce compliance burdens, and adopt a more proactive approach to financing renewable energy projects.
Minister of State for Power and MNRE, Shripad Naik, provided further details on the financial requirements to achieve the target of 500 GW renewable energy capacity by 2030. He estimated that it would require an investment of approximately ₹30 lakh crore to develop the necessary infrastructure, transmission systems, and storage solutions. Naik called on all stakeholders to explore innovative financing models, offer more flexible lending terms, and prioritize green investments to ensure that India meets its renewable energy goals.
Representatives from several major public and private sector banks attended the event, including the 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. These institutions play a vital role in facilitating the financing required to transition to a clean, sustainable energy future.
The workshop served as an important platform for addressing the financial challenges facing India’s renewable energy sector, reinforcing the government’s commitment to creating a clean, sustainable, and financially inclusive energy system. Participants left the event with a shared determination to mobilize the investments necessary for achieving India’s renewable energy targets, ensuring energy security, economic growth, and environmental sustainability for the country’s future.
