The Ministry of New and Renewable Energy (MNRE) told Parliament on Wednesday that India needs to raise much more funding for battery storage, transmission networks, green hydrogen and offshore wind power projects to meet its clean energy goals, reports The Hindu businessline.
Over the past five financial years, about ₹7.16 lakh crore has been invested in the renewable energy sector by public sector banks and financial institutions, including IREDA, PFC, REC, SIDBI, IIFCL and NaBFID.
Minister of State for New and Renewable Energy Shripad Naik said investment in the sector has risen sharply in recent years. He said renewable energy investments grew from ₹0.66 lakh crore in 2020-21 to ₹2.68 lakh crore in 2024-25. However, he noted that much higher funding will be needed to meet national targets, especially in newer areas such as energy storage, green hydrogen, offshore wind power and transmission infrastructure.
The minister said the government has taken several steps to boost investment in renewable energy. These include allowing 100 per cent foreign direct investment in the sector through the automatic route and raising funds through the issue of sovereign green bonds.
He also said the Reserve Bank of India has recently increased the loan limit under priority sector lending. Banks can now classify loans of up to ₹35 crore for renewable energy-based power projects under this category, which is expected to improve access to credit.
Citing an IREDA report, Naik said India will need an estimated ₹30.5 lakh crore in investment between 2023-24 and 2029-30 to achieve its target of 500 gigawatt of non-fossil fuel-based power capacity.
India’s renewable energy sector has also seen a sharp rise in interest from global investors. Investments reached nearly $18 billion, or over ₹1.60 lakh crore, during the January to September period of the current calendar year, marking the highest level in three years.
According to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA), investments in renewable energy during the first nine months of 2025 exceeded the total investments recorded in each of the previous three full calendar years.
The report said investments between January and September 2025 stood at $17.96 billion, higher than the full-year figures for 2022 ($15.2 billion), 2023 ($13.2 billion) and 2024 ($10 billion).
IEEFA said global private equity firms and sovereign funds are increasingly looking at India’s renewable energy sector, supported by strong policy backing and steady economic growth. While solar power continues to lead the country’s clean energy transition, newer projects that combine renewables with energy storage are helping attract even more investment, the report added.
