India Secures USD 100 Bn In Clean Energy Investment, Nears 50% Non-Fossil Capacity Target For 2030: IEA

(MENAFN- KNN India) New Delhi, Jun 7 (KNN) India is on track to achieve its 2030 target of 50 percent non-fossil fuel generation capacity ahead of schedule, according to the International Energy Agency (IEA).

The IEA's World Energy Investment 2025 report, released on June 6, reveals that 83 percent of India's power sector investments in 2024 were directed toward clean energy initiatives.

India's clean energy expenditure reached USD 100 billion in 2024, approaching the combined investment of Japan and South Korea, which totaled USD 103 billion.

This positions India significantly behind China's USD 627 billion investment and the United States' USD 400 billion commitment, while remaining competitive with the European Union's USD 386 billion allocation.

The government's strategic emphasis on cleaner energy sources serves dual objectives of reducing foreign exchange expenditure and decreasing emissions output.

The country emerged as the world's largest recipient of development finance funding for clean energy in 2024, securing approximately USD 2.4 billion in project-type interventions.

This financial support has contributed to achieving 44 percent non-fossil power generation capacity in 2024, demonstrating substantial progress toward the 50 percent target established for 2030.

Despite these achievements, the investment landscape presents mixed signals regarding foreign participation.

Foreign portfolio investment (FPI) in the energy sector has declined over the past two years due to macroeconomic pressures and sector-specific challenges, although long-term trends indicate steady growth patterns.

India's cost of capital for grid-scale renewable energy remains 80 percent higher than advanced economies, despite ranking among the lowest within emerging markets and developing economies.

These elevated financing costs directly affect project viability and result in higher energy prices for end consumers.

Infrastructure constraints present additional challenges to sector expansion.

Transmission infrastructure inadequacy has constrained 60 gigawatts of renewable capacity deployment, highlighting the critical need for coordinated development between generation and transmission capabilities to support India's accelerated clean energy transition.

(KNN Bureau)

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