New and renewable energy minister Joshi to meet bank chiefs on increasing green project financing in January

New Delhi: Union minister for new and renewable energy Pralhad Joshi will meet bank chiefs and chairpersons in January to discuss increasing financing for renewable energy projects.

Industry executives will also be included in the discussions, the minister told the 5th International Energy Conference organised by the Confederation of Indian Industry.

“In the coming days, I think somewhere in the month of January, I will meet the chairmen and MDs of all banks in Mumbai,” Joshi said on Tuesday.

Speaking to reporters on the sidelines of the event, he added: “We will talk about providing more financing for the renewable energy sector.”

The focus on financing of green energy projects comes in the backdrop of India’s plan to set up 500 GW of non-fossil power generation capacity by 2030. Investments of about ₹42 trillion are required in the green energy ecosystem to achieve the target.

Prashant Kumar Singh, secretary in the ministry of new and renewable energy, said recently that there is a need to have a green energy financing obligation on banks. Joshi was confident that India will be able to attract investments in renewable energy.

“We are confident of making India one of the top global markets for renewable energy investments. In fact, in just last month alone, 2.3 GW of new capacity was added, which means a four-fold increase from the 566.06 MW added in November 2023. So yes, this transformation is not just a dream, it is happening today,” the minister said.

Joshi added that in the past three financial years, India attracted $6.1 billion in foreign direct investment in the renewable energy sector. He said the government is taking steps to improve the attractiveness of India’s renewable energy space.

Resilient infrastructure

A report prepared by CII and EY released on Tuesday stressed the need for financing and investments to boost growth in the renewable energy space, with a target of 1,600 GW by 2047.

“However, the renewable-rich states, particularly those with huge wind and solar power capacity, will need to further enhance their intra-state transmission networks to facilitate energy export to other regions. Key challenges include the need for significant and timely financial investments to upgrade existing infrastructure and build new transmission lines,” it said.

Noting that the transmission network is vulnerable to natural disasters and other disruptions, the report stressed that investments would be required in climate-resistant infrastructure and implementation of advanced technologies like smart grids and real-time monitoring systems.