India’s Renewable Energy Push Requires Massive Investment, Says IREDA CMD
India’s renewable energy sector requires an investment of around ₹30 lakh crore, which could unlock an addressable debt market of ₹22 lakh crore for green financing, said PK Das, Chairman and Managing Director of the Indian Renewable Energy Development Agency (IREDA), on Saturday.
Speaking at the 61st National Cost and Management Accountants’ Convention, Das emphasized that India’s infrastructure push requires significant investments. According to the National Infrastructure Pipeline, large-scale investments are needed across various sectors such as power, roads, and ports in India, with a projected investment range between ₹220 lakh crore and ₹260 lakh crore from FY24 to FY30.
Out of this, renewable energy investment is projected at around ₹30 lakh crore till FY30, unlocking an addressable debt market of over ₹22 lakh crore for green financing institutions like IREDA.
Das reiterated IREDA’s commitment to advancing technological integration, operational excellence, and policy alignment within the renewable energy sector through its advisory support and consulting services. Currently, India’s green consulting market stands at ₹2,000-2,500 crore and is expected to reach ₹14,000-16,000 crore by 2030, driven by strong demand for renewable energy project advisory, impact assessment, and ESG reporting services.
IREDA, a state-run non-banking financial company (NBFC), is planning a follow-on public offer (FPO) in the current financial year to meet its capital requirements and lend to green energy projects. The FPO is aimed at raising funds for renewable energy projects, as the borrowing plan of ₹24,200 crore for FY25 would not be sufficient. The lender is targeting the second half of the current financial year or the first half of FY26 for the FPO.
In FY24, IREDA disbursed around ₹25,089 crore, compared to around ₹21,639 crore in FY23, ₹16,071 crore in FY22, and around ₹11,000 crore in FY21.
