India has been urging investors to support its green transition for several years, and it appears that the country’s renewable energy sector is gaining momentum. Despite its heavy reliance on fossil fuels, the Indian government aims to achieve net-zero carbon emissions by 2070. This goal requires a rapid expansion of green energy capacity to keep pace with the country’s growing population.
In preparation for the COP26 climate summit, the Indian government introduced the “Roadmap to India’s 2030 Decarbonisation Target.” This plan outlines ambitious goals, including a 50% reduction in carbon emissions and the establishment of 500 gigawatts (GW) of fossil fuel-free generating capacity by 2030. These targets exceed India’s commitments under the 2015 Paris Agreement, highlighting the government’s commitment to a sustainable energy future.
Prime Minister Narendra Modi has consistently called for international support to bolster India’s renewable energy and clean technology sectors. During the G20 Leaders’ Summit in 2023, he stressed the significant investments needed for a successful energy transition to combat climate change. Modi noted, “Trillions of dollars are required for an inclusive energy transition. Developed countries play a crucial role in this.”
At the Global RE-Invest summit in September, Modi reiterated his appeal for investment, stating, “India is a guarantee for better returns if you’re looking to expand. There is no better place for investments and innovation in renewable energy.” He highlighted that India is the only G20 nation to meet its climate commitments made in Paris nine years ahead of schedule. However, India is still 13% short of its pledge to increase renewable energy capacity to 175 GW by 2022.
Despite these challenges, India is now attracting the necessary funding to enhance its renewable energy capacity. The country is projected to connect a record 35 GW of solar and wind power to its grid by March 2025. As the world’s third-largest solar power producer, India needs more solar capacity to replace coal and meet rising energy demands.
To support its climate goals, financial institutions have pledged $386 billion for renewable energy projects by 2030. India will need to install at least 44 GW of clean energy capacity annually until the end of the decade to meet its targets. Renewable Energy Minister Pralhad Joshi stated, “We received overwhelming commitments from states, Union Territories, developers, manufacturers, and financial institutions to support our goal of 500 GW by 2030.”
Private companies are also increasing their investments in India’s green energy sector. This September, Tata Power announced plans to invest nearly $9 billion to expand the country’s renewable energy capacity. The company aims to add 15 GW of renewable energy by the end of the decade. CEO Praveer Sinha said, “We see renewable energy as the future, and this investment will significantly bolster our capacity in that direction.”
Last year, the Avaada Group secured $1.3 billion to advance its projects in green hydrogen, green methanol, green ammonia, solar manufacturing, and renewable power. Meanwhile, REC, an Indian infrastructure lender, signed deals worth approximately $13.37 billion with renewable energy developers for solar, wind, hydroelectric, battery energy, and green ammonia projects.
While this progress is encouraging, the Indian government is actively promoting additional investment opportunities to support its green transition. At the Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum in June, Commerce Secretary Sunil Barthwal announced $500 billion in investment opportunities, particularly in renewables, green hydrogen, and electric vehicles. This effort reflects a nationwide aim to reduce reliance on coal as energy demands continue to grow.
As the COP29 climate summit approaches, we can expect further updates on India’s progress and increased commitments from high-income countries to enhance renewable energy capacity in developing nations like India.
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