India set to be renewable energy hub with hundreds of billions earmarked for projects

At the Vibrant Gujarat Global Summit earlier this month, Asia’s wealthiest tycoon Gautam Adani pledged a staggering US$24 billion for various green energy projects in the western Indian state over the next five years.

The event, which ended on January 12, saw deals worth a total of US$86 billion signed, more than half of which related to sustainable energy.

A similar optimism was seen at the Tamil Nadu Global Investors Summit on January 7-8, where companies signed deals worth 6.64 trillion rupees (US$79.8 billion), with a quarter of that sum to be allocated to the energy sector alone.

RK Singh, the federal minister for new and renewable energy, on Monday said the government had earmarked a whopping 9.65 trillion rupees (US$116 billion) towards the sector over the next few years.

What underscores this series of investments is the substantial financial commitment to renewable energy efforts. With an insatiable appetite for energy across industries, India has been fortifying its renewable energy systems, aligning with ambitious goals to reduce carbon emissions.

Vibhuti Garg, an energy economist and South Asia director at the Institute for Energy Economics and Financial Analysis said: “For the past two or three years, the investment climate has been very favourable, resulting in a significant uptick in market investment.”

According to government figures, the renewable energy sector attracted more than US$6.1 billion in foreign direct investment between April 2020 and September 2023.

“Private capital will not come in unless they feel their risk-return profile is favourable. The government recognises the challenges in renewable energy deployment and has initiated various schemes like the PLI (Production-Linked Incentive) scheme to