India plans blended domestic and international financing to achieve 500 GW renewable energy goal, says MNRE Secretary

Key facts

• India aims to combine domestic funding, international capital and blended financing models to meet its target of 500 GW of renewable energy capacity, according to Ministry of New and Renewable Energy (MNRE) Secretary Santosh Kumar Sarangi.
• India seeks to mobilise around $220 billion in renewable energy financing between 2027 and 2030.
• The government has introduced 25-year power purchase agreements signed by distribution companies, a payment security mechanism through Solar Energy Corporation of India (SECI), and tripartite agreements between the Centre and state governments to reduce risks for renewable energy developers.
• Under the tripartite agreements, state governments may be liable to cover losses if a DISCOM fails to meet its payment obligations.
• The government has committed incentives for 5 GW of floating solar capacity, which could benefit states such as Chhattisgarh, Jharkhand, Odisha, West Bengal and Uttar Pradesh.
• Andhra Pradesh plans to add around 7.7 lakh households under the PM Surya Ghar scheme, while Odisha aims to cover 3 lakh households.
• States such as Madhya Pradesh, Chhattisgarh, Jharkhand, Odisha and Uttar Pradesh have potential for agrivoltaics, and the ministry is working with the Agriculture Ministry to promote adoption in eastern and northern India.
• India has 266 GW of renewable energy capacity, and the government expects round-the-clock renewable energy tenders and battery energy storage systems to help DISCOMs meet demand throughout the day.