India requires approximately $220 billion in clean energy investment over the next three years to support its target of achieving 500 GW of non-fossil fuel power generation capacity by 2030, a senior government official said on Wednesday. Santosh Kumar Sarangi, a senior official at the Union Ministry of New and Renewable Energy, said the investment would support the expansion of solar and wind power, battery energy storage, green hydrogen and electricity transmission infrastructure.
India Accelerates Non-Fossil Fuel Capacity Expansion
India currently has approximately 308 GW of non-fossil fuel power generation capacity. Achieving the 500 GW target by 2030 will require substantial investment in renewable energy generation, energy storage and supporting infrastructure. The target forms part of India’s broader strategy to reduce carbon emissions and achieve net-zero emissions by 2070. Consequently, accelerating clean energy deployment and mobilising long-term financing remain key priorities for the country.
Clean Energy Sector Attracts Domestic and Foreign Investment
Between 2024 and 2026, India’s clean energy sector attracted approximately US$64 billion in private investment, including US$6.2 billion from foreign investors. During the same period, the government invested an additional US$6 billion, Sarangi said. Furthermore, the government has awarded numerous clean energy project tenders in recent years to accelerate renewable energy deployment. However, around 40 GW of clean energy projects are yet to secure customers, highlighting the challenges associated with project offtake and market demand. The official did not specify how the proposed US$220 billion investment would be distributed between public and private funding or allocated across different clean energy technologies.
Solar, Wind and Energy Storage Drive Investment Needs
India’s clean energy expansion will require coordinated investment across several areas, including solar and wind power generation, battery energy storage systems, green hydrogen production and transmission networks. Energy storage and transmission infrastructure will play an important role in integrating renewable electricity into the grid and managing fluctuations in solar and wind power generation. Meanwhile, green hydrogen could help decarbonise industrial sectors that are difficult to electrify directly. Therefore, mobilising the required capital will be essential to expanding renewable energy capacity and strengthening the reliability of India’s power system.
India Develops Green Ammonia Export Opportunities
Alongside domestic renewable energy development, India is also advancing opportunities in green hydrogen derivatives, including green ammonia. According to Sarangi, the country has developed a market representing approximately 550,000 tonnes of green ammonia demand from overseas buyers, including Japan and South Korea. Green ammonia is produced using hydrogen generated with renewable electricity. It can support industrial decarbonisation and serve as a potential low-carbon fuel and energy carrier. These emerging export opportunities could strengthen India’s clean energy ambitions while creating new markets for renewable power, green hydrogen and associated technologies. As reported by esgnews.com, as India works towards its 2030 capacity target, sustained investment, stronger project demand and the expansion of supporting infrastructure will be critical to accelerating the country’s energy transition.
