India To Mobilise Domestic, Global Capital For 500 GW Clean Energy Goal: MNRE Secretary

New Delhi, Oct 27 (KNN) India is looking to mobilise around USD 220 billion in renewable energy financing between 2027 and 2030 by combining domestic funding, international capital and blended financing models to achieve its clean energy ambitions, Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy (MNRE), said.

Sarangi said India was confident of meeting its target of 500 gigawatts (GW) of renewable energy capacity through a combination of domestic and international capital.

“Given the trajectory that the renewable energy journey has seen until now, one is fairly confident that a blend of domestic and international capital should be able to meet India's aspiration in achieving the 500 gigawatt target in future,” he said.

Policy certainty will remain a priority as the country seeks to mobilise the required funding amid elevated global interest rates and tighter capital markets, reported CNBC.

Govt Focuses On Reducing Project Risks

The government has introduced several measures to reduce risks for renewable energy project developers and attract investment into the sector.

These include 25-year power purchase agreements (PPAs) signed by distribution companies (DISCOMs), which provide long-term revenue visibility to developers.

A payment security mechanism established through the Solar Energy Corporation of India (SECI) is designed to minimise risks associated with delayed payments or defaults by power purchasers.

The government has also put in place tripartite agreements involving the Centre and state governments to strengthen payment security. Under these arrangements, state governments may be liable to cover losses if a DISCOM fails to meet its payment obligations.

These measures are intended to improve investor confidence, reduce project risks and support the expansion of renewable energy capacity.

Solar Capacity Expansion Beyond Leading States

The government is also working to spread solar power capacity beyond the states that currently account for a large share of India's installations.

Expanding deployment across more states, alongside improved financing mechanisms and greater participation by international investors, is expected to support the next phase of renewable energy growth.

With around USD 220 billion in financing required between 2027 and 2030, policy stability, payment security and access to diverse sources of capital will be important to sustaining investment and advancing India’s renewable energy ambitions.

(KNN Bureau)