India Requires Rs 30 Lakh Crore to Reach 500GW of Renewable Energy by 2030: Pralhad Joshi

Mumbai, Feb 24 (NationPress) India will require Rs 30 lakh crore (approximately Rs 5 to 6 lakh crore each year) to accomplish 500 GW of non-fossil fuel energy (Renewable Energy) by the year 2030. This funding will be sourced from various channels including public sector banks, financial institutions, international loans, equity investments, debt financing, corporate bonds, and pension funds.

The Union Minister for New and Renewable Energy, Pralhad Joshi, who was joined by Minister of State Shripad Naik, made this announcement on Monday following a national workshop focused on mobilizing finance for renewable energy.

“The availability of funds for renewable energy projects has become a significant challenge across all technology sectors in the industry consultations. Nevertheless, the Centre is actively making necessary policy changes and offering financial incentives to assist industry players and developers in accessing the needed funds and technologies,” he stated.

“The government has intensified its efforts to promote greater involvement of mainstream public sector lenders in utility-scale renewable energy, develop credit enhancement mechanisms, and attract pension, insurance, and corporate bond investments,” the minister remarked during a press interaction.

He further emphasized that the Ministry of Renewable Energy is continuously monitoring and working to mitigate project risks, including delays in transmission projects, implementation of power purchase agreements, and land acquisition challenges.

“There is a crucial need to attract international lenders to the Indian market,” he added.

The minister expressed the government’s ambition to achieve 500 GW of renewable energy by 2030, as India's power demand is anticipated to double by 2032.

“India’s energy consumption is expected to grow significantly. Investing in renewable energy is vital to sustainably meet this demand and lessen dependence on fossil fuels. A robust push for local manufacturing of solar modules, wind turbines, battery storage, and electrolyzers is essential for establishing a resilient clean energy ecosystem,” he noted.

As of January 31, 2025, solar power has reached a cumulative installed capacity of 100 GW, making it the cornerstone of India's renewable energy strategy.

He added that significant investments are necessary for large-scale solar parks, rooftop installations, and solar manufacturing units to satisfy the rising energy demands.

According to the minister, India's wind power capacity stood at 48.3 GW as of January 31, 2025.

“The government is encouraging investments in both onshore and offshore wind projects as well as turbine manufacturing,” he stated.

To address the intermittency of renewable energy sources, investments in energy storage solutions such as battery storage, pumped hydro storage, hydrogen storage, and other emerging technologies are critical for grid stability and ensuring continuous renewable energy supply, he added.

“Both central and state governments provide various incentives, including tax breaks and subsidies, to attract investments and expedite renewable energy adoption. Initiatives like the Production Linked Incentive scheme for solar manufacturing and the Green Hydrogen Open Access regulations are already fostering significant investments,” he continued.

The minister mentioned that the government is actively working on the National Green Hydrogen Mission, which has an allocation of Rs 19,744 crore.

Additionally, under the flagship PM-KUSUM Yojana, the government plans to supply electricity to farmers during the day.

PM-KUSUM aims to establish 10 GW of decentralized solar plants on land owned by farmers, install 1.4 million standalone solar pumps, and solarize 3.5 million grid-connected agricultural pumps — known as Components A, B, and C, respectively.

By subsidizing the adoption of solar pumps and assisting DISCOMs in solarizing grid-connected pumps through decentralized solar plants, the scheme ensures reliable daytime power for farmers.

Regarding the PM Surya Ghar: Muft Bijli Yojana (PMSGMBY), the minister reported that approximately 950,000 households have benefitted from rooftop installations to date.

The scheme provides free electricity to households by installing subsidized rooftop solar panels, significantly reducing their energy expenses.