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India is making significant strides towards its ambitious renewable energy goals, having secured a substantial $386 billion in funding to bolster its renewable energy capacity by 2030. This commitment was announced by Union renewable energy minister Pralhad Joshi, highlighting the nation's unwavering dedication to transitioning towards a cleaner and more sustainable energy future.
The funding, secured from a diverse range of financial institutions and banks, will be instrumental in achieving India's target of reaching 500 GW of renewable energy by 2030. This target, a cornerstone of India's climate action plan, signifies a bold step towards reducing reliance on fossil fuels and mitigating the impacts of climate change.
The announcement follows a successful Renewable Energy Investor's Meet and Expo held in Gujarat, where states, Union Territories, developers, manufacturers, and financial institutions expressed overwhelming support for India's ambitious renewable energy agenda. Power developers, in particular, have pledged to establish an additional 570 GW of power generation capacity, with a substantial portion dedicated to solar modules (340 GW) and solar cells (240 GW).
While India has witnessed impressive growth in its renewable energy sector, adding over 18 GW of capacity in the current fiscal year, the country's reliance on fossil fuels remains significant. Fossil fuels currently account for over 77% of India's total electricity generation. The increasing demand for electricity, fueled by growing economic activities and extreme heatwaves, has led to an average annual increase in electricity generation of approximately 8%.
Looking ahead, India anticipates continued growth in coal-fired power generation, with projections indicating an 8.9% increase from 2024 to 2025. While this growth outpaces the anticipated 8.2% increase for renewable energy sources, such as solar, wind, small hydro plants, and biomass, it highlights the ongoing challenge of balancing energy security with environmental sustainability.
India's commitment to renewable energy, coupled with its ambitious funding target, signals a strong determination to navigate this complex energy landscape. The country's ability to attract significant investment in renewable energy will be crucial in achieving its ambitious goals and establishing itself as a global leader in the clean energy transition.
Source: India Renewable: India secures $386 billon funding for renewable energy expansion by 2030