India is poised to experience an impressive 83% surge in investments in renewable energy projects, reaching approximately $16.5 billion in 2024, as the country intensifies its efforts towards energy transition and reducing carbon emissions. This initiative is aligned with India’s ambitious target of achieving 500 GW of renewable energy by 2030 and reducing overall power generation capacity from fossil fuels to less than 50%. Additionally, India has committed to achieving a net-zero emission target by 2070.
Union Power and New and Renewable Energy Minister R K Singh has emphasized that as much as 65% of the power generation capacity is expected to come from non-fossil fuels by 2030, surpassing the targeted 50%. In an interview with PTI, Singh revealed that India is likely to witness the addition of 25 GW of renewable energy capacity in 2024, requiring an investment of approximately Rs 1,37,500 crore (about $16.5 billion), which is higher than the 13.5 GW added in 2023 with an investment of Rs 74,250 crore (nearly $9 billion).
In addition to solar and wind energy, India has ramped up its focus on green hydrogen to reduce its reliance on fossil fuels, particularly diesel, which is widely used in commercial vehicles for passenger and freight services. The Union Cabinet approved the National Green Hydrogen Mission with an initial outlay of Rs 19,744 crore. Furthermore, the Solar Energy Corporation of India (SECI) invited bids for providing incentives for the production of 4,50,000 tonnes of green hydrogen and 1.5 GW of electrolyser manufacturing facilities annually under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme.
Several companies, including Reliance Electrolyser Manufacturing, Adani New Industries, L&T Electrolysers, and Bharat Heavy Electricals, participated in the bidding process for electrolyser manufacturing. Similarly, companies like ACME Cleantech Solutions, Torrent Power, UPL, and others showed interest in setting up green hydrogen production facilities. The National Green Hydrogen Mission aims to establish India as a global hub for manufacturing green hydrogen, with a target of developing 5 million metric tonnes per annum of green hydrogen production capacity by 2030.
The Ministry of Ports, Shipping, and Waterways has identified three major ports—Deendayal, Paradip, and V O Chidambaranar (Tuticorin)—to be developed as hydrogen hubs as part of the mission. India currently has 7.8 million tonnes of green hydrogen capacity at various stages of development. The SIGHT scheme, backed by Rs 17,490 crore, is expected to catalyze green hydrogen production, develop the green hydrogen ecosystem, and facilitate industrial decarbonization.
Industry leaders and experts have expressed optimism about India’s transition towards environmental sustainability and the growing focus on green hydrogen. Vineet Mittal, Chairman of CII’s Taskforce on Green Hydrogen, highlighted India’s potential to emerge as a production hub for green hydrogen derivatives. Rahul Munjal, Co-Chairman of CII Renewable Energy Council, emphasized the expectation of continued investment and technological advancements in renewable energy and battery storage.
The Central Electricity Authority (CEA) has outlined a comprehensive vision targeting 292 GW of solar, 100 GW of wind, and 18 GW of hydro installations by 2030, presenting diverse investment opportunities in the sector. Shekhar Dutt, Director General of Solar Power Developers Association (SPDA), advocated for large-scale tenders and the implementation of Green Hydrogen Consumption Obligations (GHCOs) to promote green hydrogen usage. Girishkumar Kadam, Senior Vice President and Co-Group Head of Corporate Ratings at ICRA, projected that India’s installed renewable energy capacity, excluding large hydro, is expected to increase to about 170 GW by March 2025, supported by significant tendering activity.
The surge in renewable energy investments and the emphasis on green hydrogen signify India’s commitment to sustainable energy and its role in the global transition towards clean energy solutions.
