India's RE policies a role model for emerging economies: Analysis

NEW DELHI: As India looks to attract international investment and deepen cooperation in clean energy, green hydrogen, storage and manufacturing at the Bharat Renewable Energy Summit & Expo (BRESE), a new international analysis has described the country as a “role model” in developing its renewable power sector, crediting its policy and regulatory measures for addressing investment risks and creating an environment conducive to private capital.The assessment comes at a time when India is looking to mobilise around $220 billion in investment between 2027 and 2030 to expand renewable energy capacity, manufacturing, transmission infrastructure and energy storage as it works towards its target of 500 GW of installed non-fossil fuel capacity by 2030. Govt has already secured $64 billion in private investment between June 2024 and June 2026, including $6.2 billion in foreign direct investment, MNRE secretary Santosh Sarangi told reporters earlier this week.The recent analysis by Zero Carbon Analytics, titled Emerging market financing for renewables, said India had adopted a holistic approach to addressing risks related to project development, construction and market access, describing the country as “a renewables powerhouse built on enabling policies”.The report said India's long-term target of 500 GW of non-fossil fuel capacity by 2030, backed by an annual bidding trajectory of 50 GW of renewable energy capacity through FY28, provides visibility to developers and investors. It also highlighted govt’s decision to allow up to 100% foreign direct investment in the electricity sector.Among the measures aimed at reducing project development risks, the analysis cited the Ultra Mega Renewable Energy Power Parks scheme, which provides developers access to land and transmission infrastructure, along with capital and interest subsidies for renewable energy projects. It also pointed to viability gap funding for offshore wind projects, including support for the development of India's first offshore wind farms.On the demand side, the report said renewable consumption obligations, which require distribution companies and large industrial and commercial consumers to source a specified proportion of their electricity from renewable sources, have helped create an expanding market for green power. Access to day-ahead and intra-day power exchanges has also widened avenues for generators to sell electricity.The analysis also highlighted measures introduced by govt in 2022 to address delays in payments by distribution companies to power generators, which had been a major concern for renewable energy developers. Outstanding dues of distribution companies, which stood at Rs 1.4 lakh crore in 2022, declined to Rs 4,109 crore in Feb 2026, it said.The report estimated that capital expenditure on solar and onshore wind projects across emerging and developing economies could reach $356 billion by 2040 if current trends continue.A senior industry executive said India’s policies to boost investment in the renewable energy sector over the past two decades had catalysed green energy growth and helped the country meet its Paris Agreement goals ahead of schedule. “Further investment focus is now required in the country’s solar supply chain. India will continue to lead in renewable energy growth and investment attractiveness, thanks to the conducive policy environment and resilience of the Indian solar industry,” the executive said.You use AI every day. Now get your AI Quotient. Take the AIQ test.