Mobilising finance is key to achieving 500 GW of renewable energy by 2030, said Union Minister for New & Renewable Energy Pralhad Joshi. He made these remarks while addressing the National Workshop on Mobilising Finance for Renewable Energy, organised by the Union Ministry of New and Renewable Energy in Mumbai. The Minister emphasised the importance of collective efforts from financial institutions and policymakers to ensure accessible funding for the renewable energy sector. Alongside him, the Minister of State for New & Renewable Energy, Shripad Naik, also participated in a press conference held in conjunction with the workshop.
Joshi stated that the idea for the workshop emerged from a review meeting chaired by Prime Minister Narendra Modi, where discussions centred around accelerating flagship schemes such as PM Surya Ghar and PM-KUSUM. Highlighting India’s growing energy needs, the Minister noted that as the country progresses towards becoming the third-largest economy, its energy demand is expected to double. He stressed that renewable energy must be scaled up to match thermal energy production, ensuring a reliable and resilient power supply.
India has committed to achieving Net Zero by 2070 and reaching 500 GW of non-fossil fuel-based capacity by 2030. The Minister urged financial institutions to align their lending policies with India’s renewable energy growth strategy, emphasising that carbon-intensive industries will face reduced export opportunities in the future. He also noted India’s progress in renewable energy, with capacity increasing to 222 GW. Solar tariffs have significantly dropped, with a recent bid in Madhya Pradesh reaching ₹2.15 per unit compared to ₹11 per unit earlier. However, he underlined the importance of battery storage solutions in supporting large-scale renewable deployment.
Discussing the role of decentralisation, Joshi highlighted that schemes such as PM-KUSUM and PM Surya Ghar empower farmers to become “Urjadata” (energy providers) while also reducing transmission losses. He urged banks to simplify financing processes, particularly for rooftop solar projects, and called for the introduction of a Renewable Energy Financing Obligation to ensure dedicated funding for the sector, similar to Renewable Purchase Obligations (RPOs) for distribution companies.
India is also leading in the field of green hydrogen, according to the Minister, who stated that the country has already received major export orders and is ahead of several developed nations in this area. He noted that global investors are increasingly looking at India as a preferred destination for clean energy investments due to its young workforce and strong industrial capacity. Prime Minister Modi has directed engagement with global financial institutions for renewable energy investments, and India recently secured commitments worth ₹34.5 lakh crore at a global RE summit in Gandhinagar. Joshi emphasised that transitioning to renewable energy is not optional but a necessity and called for a national movement in renewable energy financing. He urged financial institutions to streamline lending processes, reduce compliance burdens, and adopt a more supportive approach toward financing clean energy projects.
Union Minister of State for Power and New & Renewable Energy, Shripad Naik, stated that achieving 500 GW of renewable energy by 2030 will require an estimated investment of ₹30 lakh crore, covering infrastructure, transmission, and storage systems. He called on stakeholders to adopt innovative financing models, extend flexible lending terms, and prioritise green investments to accelerate the energy transition.
In her address, Secretary MNRE Nidhi Khare underscored the critical role of affordable finance, green bonds, and innovative funding models in driving India’s renewable energy shift. The National Workshop on Mobilising Finance for Renewable Energy featured four key sessions, focusing on financing challenges in the renewable energy sector. The first session examined the financing landscape for utility-scale renewable energy projects, addressing challenges faced by developers, banks, and NBFCs in securing funding. Discussions covered interest rates, perceived risks, and solutions for financial institutions to support large-scale projects. The second session focused on financing new and emerging renewable technologies, such as offshore wind, floating solar, and green hydrogen, with experts from NABARD and leading financial institutions discussing capital allocation strategies, policy interventions, and financial risk mitigation.
The third session tackled financing challenges for distributed renewable energy (DRE) and innovative renewable energy applications, including rooftop solar, canal-top PV, and Agri-PV. Experts discussed financing constraints for startups, perceived investment risks, and necessary policy support to scale up these solutions. The final session focused on regulatory and capacity-building measures for banks and NBFCs, addressing RBI guidelines, sector-specific lending policies, and strategies to enhance financing in consumer-oriented renewable energy applications. Stakeholders emphasised the need for improved regulatory frameworks, risk-sharing mechanisms, and financial instruments to unlock capital for India’s renewable energy ambitions.
Key takeaways from the discussions included the need for lower-cost financing, improved access to global climate funds, and enhanced risk-sharing mechanisms for new technologies. Participants also stressed the importance of strengthening public-private partnerships and expanding green financial instruments to support India’s clean energy transition. The event concluded with a commitment from all stakeholders to work towards innovative financing models and policy frameworks to unlock large-scale investments in the renewable energy sector.
Senior officials from major public and private sector banks, including 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, also attended the workshop.
The workshop marked a significant step towards ensuring that financial constraints do not hinder India’s renewable energy ambitions. It reaffirmed the government’s commitment to a clean, sustainable, and financially inclusive energy future. By providing a platform for key stakeholders—including banks, NBFCs, policymakers, and industry leaders—the workshop facilitated discussions on strategies for mobilising large-scale investments in renewable energy. Participants reiterated their commitment to supporting India’s clean energy transition, ensuring energy security, economic growth, and environmental sustainability. The event served as a crucial step in bridging the financial gap for renewable energy projects, reinforcing India’s position as a global leader in the clean energy revolution.
