India requires an estimated ₹30.5 lakh crore from FY24 till FY30 to achieve 500 gigawatt (GW) of non-fossil fuel-based power capacity
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PERIASAMY M
The Ministry of New & Renewable Energy (MNRE) informed Parliament on Wednesday that the country needs to mobilise finances for battery storage, transmission infrastructure, green hydrogen and offshore wind power projects.
Over the last five financial years, around ₹7.16 lakh crore has been deployed in the Renewable Energy (RE) sector by public sector banks, IREDA, PFC, REC, SIDBI, IIFCL and NaBFID.
“Investment in the RE sector has increased considerably from ₹0.66 lakh crore in FY21 to ₹2.68 lakh crore in FY25, although higher mobilisation of RE finance to meet national targets, particularly in emerging segments such as energy storage, green hydrogen, offshore wind, and transmission infrastructure is required,” Minister of State for New & Renewable Energy Shripad Naik said in written response to a query in Lok Sabha.
Government has taken various steps to increase deployment of investment in the Renewable Energy sector including allowing 100 per cent Foreign Direct Investment (FDI) in the sector under automatic route and raising, and allocating funds using Sovereign Green Bonds.
Further, the Reserve Bank of India (RBI) has recently enhanced the eligibility limit of priority sector classification for bank loans up to ₹35 crore to borrowers for renewable energy-based power, the Minister added.
Quoting from an IREDA report, Naik pointed out that India requires an estimated ₹30.5 lakh crore from FY24 till FY30 to achieve 500 gigawatt (GW) of non-fossil fuel-based power capacity.
Improved profile
Renewed interest from global private equity and sovereign funds has significantly improved the profile of India’s RE sector with investments hitting almost $18 billion, or more than ₹1.60 lakh crore, during January to September period in the current calendar year—already a three year high.
The Institute for Energy Economics and Financial Analysis (IEEFA) in a recent report pointed out that renewable energy sector investments in the first nine months of 2025 overtook full-year investments in the previous calendar years as the sector witnessed renewed interest from global investors.
The nine-month (January-September) investment numbers in 2025 already reached $17.96 billion, well above the full-year numbers in 2022 ($15.2 billion), 2023 ($13.2 billion), and 2024 ($10 billion), it added.
“Global private equity and sovereign funds are showing heightened interest in India’s renewable energy sector, spurred by supportive energy transition policies and sustained economic growth. While solar power remains the primary driver of India’s energy transition, emerging hybrid applications and the integration of energy storage to deliver firm power are further accelerating investment momentum,” the institute pointed out.
Published on December 17, 2025
