India Requires $220 Billion for Green Power Transition by FY30
Context
The Ministry of New and Renewable Energy indicated that India would require approximately $220 billion in investments between FY27 and FY30 to expand renewable energy generation, transmission infrastructure and green technology manufacturing.
Key Highlights
- Total investment requirement: India needs approximately $220 billion between FY27 and FY30 to accelerate its renewable energy transition.
- Solar energy: Solar power is expected to attract the largest share of investment, requiring approximately $70–75 billion.
- Transmission infrastructure: Investments of $40–45 billion will be required to expand transmission infrastructure.
- Wind energy and green hydrogen: Wind energy is expected to require $25 – 30 billion, while green hydrogen will need $20 – 25 billion.
- Green technology manufacturing: An additional $15 – 20 billion will be required to manufacture green technologies and associated equipment.
- Private investment and FDI: The renewable energy sector attracted approximately $64 billion in private investment between July 2024 and June 2026, including $6.2 billion in foreign direct investment.
- Green hydrogen and geothermal energy: India’s green hydrogen developers have secured orders to supply approximately 5.5 lakh tonnes until 2026. Meanwhile, the government is developing a framework for geothermal exploration rights.
Key Concepts
- Energy Transition: The shift from fossil fuel based energy systems towards cleaner and renewable energy sources.
- Green Hydrogen: Hydrogen produced using renewable electricity, with potential applications in industry, transport and energy storage.
- Green Finance: Financial flows directed towards environmentally sustainable projects and low carbon technologies.
- Energy Security: Ensuring reliable, affordable and sustainable access to energy while reducing external vulnerabilities.