India draws $400 bn in preliminary renewable investment pledges

Global and domestic investors, along with renewable energy companies, have pledged investments totaling $400 billion in India's renewable energy sector, according to New Delhi's Minister for New and Renewable Energy, Pralhad Joshi. The commitments were disclosed during the chief executive officer's roundtable at the Bharat Renewable Energy Summit, and are preliminary in nature. The Indian government plans to review each investor's proposal.

The $400 billion investment commitment is nearly double the projected requirement of $220 billion by the end of this decade. Joshi revealed that global fund managers and companies have expressed interest in investing in various renewable energy areas, including green hydrogen, battery storage, and transmission infrastructure. He stated that even if some of the proposed investments do not come to fruition, India would still be able to meet the $220 billion target, as the interest shown at the BRE Summit is nearly double the amount required.

Despite concerns over the ongoing conflict in West Asia and its potential impact on the global investment scenario, Joshi noted that international investors still view India favorably, even during periods of geopolitical uncertainty. The Union Cabinet recently approved ₹14,500 crore viability gap funding for grid-scale energy storage, which will help address concerns related to grid stability and variability in renewable electricity generation.

Currently, India has a non-fossil capacity of 308GW, with a target of 500GW by 2030. Prime Minister Narendra Modi addressed the summit on Monday, expressing the government's aim to add another 500GW of non-fossil capacity within the next 10-11 years. The minister added that India plans to achieve around 1,800GW of non-fossil capacity by 2047.