Mobilizing finance is essential for reaching the ambitious target of 500 GW of renewable energy by 2030, according to Union Minister Pralhad Joshi. He stated that approximately Rs 32 lakh crore will be required to achieve this goal and emphasized the importance of a national movement to enhance funding in the renewable energy sector.
During a recent workshop organized by the Union Ministry of New and Renewable Energy, Joshi urged banks and financial institutions to simplify their financing processes for clean energy projects. He called for a reduction of unnecessary compliance burdens and a more supportive approach to lending in this sector. The workshop aimed to address key issues such as mobilizing finance, establishing regulatory frameworks, and creating risk-sharing mechanisms to support India’s green energy objectives.
Joshi highlighted that as India aspires to become the third-largest economy globally, its energy demand is projected to double. He noted that the transition to renewable energy must keep pace with thermal energy production to ensure a reliable power supply. The minister reaffirmed India’s commitment to achieve net-zero carbon emissions by 2070 and to reach 500 GW of non-fossil fuel energy capacity by 2030.
He mentioned that India has already made significant strides in renewable energy, with current capacity reaching 222 GW. To further enhance financing in this sector, Joshi proposed that financial institutions align their lending policies with the country’s renewable energy growth strategy. He pointed out that industries reliant on carbon-intensive practices will likely face diminished export opportunities in the future.
The workshop featured discussions on various topics, including financing for utility-scale renewable energy projects, challenges in funding distributed renewable energy, and innovative applications of renewable technology. Stakeholders underscored the urgent need for improved regulatory frameworks and financial instruments to unlock necessary capital for achieving India’s renewable energy goals.
Moreover, Joshi stressed the importance of collaborative efforts among policymakers, financial institutions, and industry leaders to mobilize substantial investments. He noted that the workshop generated valuable ideas aimed at increasing financing by Rs 5-6 lakh crore annually to meet the target of Rs 30 lakh crore by 2030.
He also called for banks to simplify financing for rooftop solar projects and proposed a renewable energy financing obligation to ensure dedicated funding for the sector, similar to existing obligations for distribution companies. As for green hydrogen, Joshi stated that India is already receiving major export orders and is ahead of several developed nations in this field.
Joshi concluded by emphasizing that the transition to renewable energy is not merely a choice but a necessity, calling for a national movement to support renewable energy financing.
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