India must accelerate financing for renewable energy to achieve its target of 500 gigawatts of non-fossil fuel capacity by 2030, Union Minister for New & Renewable Energy Pralhad Joshi said on Monday.
Speaking at the National Workshop on Mobilizing Finance for Renewable Energy in Mumbai, Joshi urged financial institutions to align their lending policies with the country’s clean energy goals.
The workshop, organized by the Ministry of New and Renewable Energy, focused on addressing financing challenges in the sector. It followed a review meeting chaired by Prime Minister Narendra Modi, which stressed the need to fast-track programs such as PM Surya Ghar and Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan.
Call for Financial Sector Reforms
Joshi emphasized that as India moves toward becoming the world’s third-largest economy, its energy demand will double, necessitating an expansion in renewable capacity to match thermal energy production.
He highlighted battery storage’s importance in supporting large-scale deployment and called for simplified financing processes, particularly for rooftop solar projects.
“A Renewable Energy Financing Obligation, similar to Renewable Purchase Obligations for power distribution companies, should be introduced to ensure dedicated funding,” Joshi said. He also noted that India is emerging as a leader in green hydrogen, with significant export orders already secured.
Union Minister of State for Power and New & Renewable Energy Shripad Naik estimated that achieving the 500 GW renewable target would require around ₹30 lakh crore ($360 billion) in investment. He urged financial institutions to adopt innovative financing models and prioritize green investments.
Global Investments and Policy Support
Joshi emphasized Prime Minister Modi’s push for global financial engagement, citing India’s success in securing commitments worth ₹34.5 lakh crore during a recent global renewable energy summit in Gandhinagar. He stressed that transitioning to clean energy is not a choice but a necessity.
Secretary MNRE Nidhi Khare highlighted the role of affordable finance, green bonds, and innovative funding models in advancing India’s renewable energy transition.
The workshop included key discussions on financing utility-scale renewable projects, emerging technologies such as offshore wind and floating solar and decentralized energy solutions like rooftop and canal-top solar.
Financial sector leaders, including representatives from major banks such as State Bank of India, HDFC Bank and ICICI Bank, participated in discussions on reducing risks, streamlining lending policies, and enhancing access to global climate funds.
Also Read:
India Powers Ahead in Renewable Energy, Meeting Clean Energy Targets
