Banks pledge $386 billion to support India’s renewable energy industry

Financial institutions have pledged a total of $386 billion in investment commitments to help India develop its renewable energy sector, Renewable Energy Minister Pralhad Joshi said on Monday.

India has set a target of installing 500 gigawatts (GW) of renewable energy capacity by 2030, up from about 153 GW currently.

To reach the 500 GW target, the country will need to install at least 44 GW of clean energy annually by the end of the decade, according to Bloomberg estimates based on data from India’s Power Ministry.

“We have received huge commitments from states and union territories as well as developers, manufacturers and financial institutions to support our target of 500 GW by 2030,” Renewable Energy Minister Pralhad Joshi said at the annual Renewable Energy Investors Meet and Exhibition, Reuters reported.

Indian conglomerates Reliance Industries and Adani are among the companies that have pledged to increase renewable capacity. Reliance has pledged to add 100 GW of renewable capacity and Adani Green Energy has pledged to add 38.8 GW.

A growing economy and rising demand for electricity are driving up estimates of India’s long-term energy needs.

India’s electricity demand is expected to increase by 7% in 2023, the International Energy Agency (IEA) said in its Electricity 2024 report earlier this year.

According to the Paris-based agency, the country will record average annual economic growth of more than 6% by 2026, helped by strong economic activity and a growing number of air conditioner owners.

“India is set to increase its electricity demand to about the same level as the UK’s current consumption over the next three years. While renewables are expected to meet almost half of this increase in demand, a third is expected to come from growth in coal-fired power generation,” the IEA noted.

Despite the push to develop renewable energy sources, India plans to increase domestic coal production and cut imports, G. Kishan Reddy, minister for coal and mining, said in June 2024.

Author: Tsvetana Paraskova for Oilprice.com

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