India’s clean energy expansion is moving ahead, but officials are looking to investors for support as new projects, storage needs and infrastructure plans put pressure on the sector’s next phase of growth.
India will need substantial investment over the next three years to expand renewable power generation, strengthen electricity transmission and develop emerging clean energy technologies, a senior government official said on Wednesday. The funding will support the country’s target of reaching 500 GW of non-fossil fuel capacity by 2030.
Santosh Kumar Sarangi, the senior official at the federal clean energy ministry, said investment would be required across solar and wind power, battery energy storage, green hydrogen and transmission infrastructure. India currently has around 308 GW of non-fossil fuel-based power generation capacity and is working to increase that figure as part of its longer-term goal of achieving net-zero emissions by 2070.
The scale of the investment requirement comes as India works to attract more private capital into clean energy while addressing difficulties in finding buyers for projects already developed or awarded through tenders.
Sarangi said around 40 GW of clean energy projects have yet to secure customers. The situation follows a strong government push for renewable energy and the award of a large number of projects in recent years.
Investment, storage and demand remain key challenges
India attracted approximately $64 billion in private investment in the clean energy sector between 2024 and 2026, according to Sarangi. That total included $6.2 billion in foreign investment. The government invested a further $6 billion over the same period.
Despite those inflows, the volume of projects awaiting buyers highlights the need to align new generation capacity with demand and the infrastructure required to deliver electricity. The federal government is working with state governments to encourage greater adoption of clean power and expand battery storage, Sarangi said.
Battery energy storage is among the areas identified for investment, alongside renewable generation and transmission networks. The government’s efforts involve coordinating with states as India continues to build capacity and seeks ways to support the wider use of clean electricity.
Green hydrogen and green ammonia are also part of the sector’s expansion. Sarangi said India had already developed a market representing around 550,000 tonnes of green ammonia demand from overseas buyers, including Japan and South Korea.
That overseas demand offers a market for Indian producers as the country develops clean energy industries beyond electricity generation. However, the official’s remarks also underline the need for investment across several connected parts of the energy system, from generating power to storing and transmitting it.
The government is preparing to engage potential investors at a clean energy summit in New Delhi next week. Sarangi said discussions would cover possible investments from several countries, including Canadian pension funds.
The meetings come as India seeks further capital to support its 2030 capacity target while working with state governments to increase clean power adoption and battery storage. With projects still waiting for customers, attracting investment will be only one part of the task. The country must also build demand and supporting infrastructure to make its expanding clean energy capacity useful across the power system.
India’s longer-term climate objective remains net-zero emissions by 2070, while the immediate target is to reach 500 GW of non-fossil fuel capacity by 2030. The investment discussions will help determine how additional capital could support those ambitions and the technologies needed to deliver them.