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

India targets to have 500 gigawatts (GW) of renewables capacity installed by 2030, compared to around 153 GW capacity now.

The country will need to install at least 44 GW of clean energy capacity every year by the end of the decade to meet the 500-GW goal, according to Bloomberg’s estimates based on data from the Indian Ministry of Power.

“We received overwhelming commitments from states and Union Territories as well as from the developers, manufacturers, and financial institutes to support our goal of 500 GW by 2030,” the renewables minister, Pralhad Joshi, said at the annual Renewable Energy Investor’s Meet and Expo, as carried by Reuters.

India-based conglomerates Reliance Industries and Adani are among the companies that have pledged additional renewable energy capacity. Reliance committed 100 GW of additional renewable capacity, and Adani Green Energy pledged to develop 38.8 GW of capacity.

The growing economy and rising electricity demand are boosting estimates for India’s long-term power needs.

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

The country will see growth of above 6% on average annually until 2026, supported by strong economic activity and expanding ownership of air conditioners, according to the Paris-based agency.

“Over the next three years, India will add electricity demand roughly equivalent to the current consumption of the United Kingdom. While renewables are set to meet almost half of this demand growth, one-third is expected to come from rising coal-fired generation,” the IEA noted.

Despite the renewables push, India plans to increase its domestic coal production and reduce imports, G. Kishan Reddy, Minister of Coal and Mines, said in June 2024.

By Tsvetana Paraskova for Oilprice.com

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