At the World Economic Forum 2026 in Davos, Switzerland, India emerged as a formidable force in the global clean energy transition, making an ambitious pitch to international investors by positioning itself as one of the world’s most investment-ready clean energy markets with an estimated capital requirement of $300-$350 billion by 2030. This massive investment opportunity comes at a crucial time when global investors are actively seeking predictable growth opportunities in sustainable energy markets, and India’s unique combination of scale, affordability, and policy certainty is capturing unprecedented attention from the international financial community.
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Strategic Positioning and Policy Framework
Leading India’s comprehensive outreach at the forum, Union Minister for New and Renewable Energy Pralhad Joshi emphasized that the country’s energy transition offers a rare combination of speed, scale, stability, and long-term returns that few other markets can match. Speaking across multiple high-level sessions and bilateral investor meetings at the World Economic Forum, Minister Joshi highlighted India’s remarkable achievement of building 267 GW of non-fossil fuel capacity as of December 2025, firmly establishing the nation on track to meet its ambitious 2030 clean energy targets well ahead of schedule.
The Minister’s presentation to global investors underscored that India’s renewable energy pitch fundamentally rests on three critical pillars: affordability, reliability, and energy security. These attributes have been achieved through a combination of rapidly falling renewable tariffs, comprehensive grid modernization initiatives, and increasingly competitive prices for both storage solutions and green hydrogen production. This trifecta of competitive advantages has effectively positioned clean energy at the very center of India’s economic growth strategy, making it not just an environmental imperative but a core economic driver for the world’s most populous nation.
Competitive Cost Structure and Manufacturing Capabilities
India’s competitive edge in the clean energy sector is perhaps most dramatically illustrated by the substantial decline in renewable energy costs over the past decade. According to official government data, solar tariffs have declined by nearly 80 percent over recent years, making solar power not only competitive with new coal-based power generation but in many cases cheaper than even existing coal plants. This remarkable cost reduction has been driven by multiple factors including global technology improvements, economies of scale achieved through massive deployment, and supportive policy frameworks that have encouraged competitive bidding and market efficiency.
The financial competitiveness extends beyond solar power to encompass the entire renewable energy ecosystem. Recent auctions have demonstrated that renewable energy coupled with storage has become cost-competitive with traditional thermal power generation, addressing one of the critical challenges of renewable energy integration – intermittency and reliability of supply. This achievement represents a watershed moment for India’s energy transition, as it eliminates the cost penalty that was previously associated with clean energy alternatives.
Perhaps even more impressive is India’s progress in green hydrogen and green ammonia production, sectors that are expected to play crucial roles in decarbonizing hard-to-abate industries. India has achieved record-low green ammonia prices of approximately $641 per metric tonne through government auctions, prices that are among the most competitive globally and represent a substantial reduction from international benchmarks. This price discovery demonstrates India’s ability to leverage its renewable energy advantages to create competitive positions in emerging clean energy technologies.
Supporting this cost competitiveness is India’s rapidly expanding domestic manufacturing ecosystem. The country’s renewable energy manufacturing capacity has expanded to 144 GW per annum for solar modules, with an impressive 81 GW added in 2025 alone under the Approved List of Models and Manufacturers (ALMM) framework. This represents a year-on-year increase of approximately 99 percent, demonstrating the extraordinary pace of capacity expansion. This manufacturing scale positions India not merely as a major clean energy market but as a reliable global manufacturing and investment hub, capable of supporting both domestic deployment and international export opportunities.
Investment Priorities and Sector Focus
During bilateral meetings conducted on the sidelines of the World Economic Forum, Minister Joshi engaged extensively with global investors and energy companies to explore concrete investment opportunities across multiple segments of India’s renewable energy sector. These discussions focused primarily on three key areas that represent the most significant investment opportunities: green hydrogen-linked infrastructure, renewable energy plus battery storage projects, and comprehensive grid modernization initiatives.
The Minister specifically encouraged patient capital and blended finance structures to support the large-scale deployment needed to meet India’s ambitious targets. Patient capital – long-term investment that can withstand market volatility and wait for returns – is particularly crucial for renewable energy infrastructure projects that typically require substantial upfront capital but deliver stable, long-term returns. Blended finance structures, which combine public and private capital to de-risk investments, were highlighted as essential mechanisms for attracting the scale of investment required.
India’s energy storage sector represents a particularly compelling investment opportunity, with battery energy storage capacity set to rise nearly ten-fold to around 5 GWh in 2026 from just 507 MWh in 2025. This dramatic expansion reflects the transition from tendering to actual project execution and demonstrates the government’s serious commitment to addressing the intermittency challenges associated with renewable energy. Government support through viability gap funding and competitive tariff discoveries are driving rapid deployment, positioning energy storage as a cornerstone for renewable integration and grid reliability.
The green hydrogen sector has emerged as another focal point for international investment. India’s National Green Hydrogen Mission, with an initial outlay of ₹19,744 crore, aims to develop a production capacity of at least 5 million metric tonnes per annum by 2030. Recent auction results have demonstrated strong investor confidence, with the Solar Energy Corporation of India’s procurement achieving a record low price of ₹55.75 per kilogram of green ammonia, translating to approximately $641 per metric tonne. This represents a substantial decrease from the previous international benchmark of $1,153 per metric tonne discovered in the H2Global auction in 2024, marking a watershed moment in India’s green hydrogen journey.
State-Level Execution Excellence
India’s renewable energy transformation is being advanced not only at the national level but through strong, reform-oriented states that are translating policy into tangible outcomes on the ground. The central government specifically highlighted the crucial role of states in driving the energy transition, pointing to Maharashtra and Madhya Pradesh as exemplary cases of delivering globally competitive solar and storage projects while emerging as hubs for green hydrogen development.
Madhya Pradesh has distinguished itself through demonstration of strong execution capabilities, achieving some of the lowest costs for solar power and battery storage in the country alongside globally competitive green hydrogen prices. The state’s Rewa Ultra Mega Solar Park achieved landmark low tariffs that made solar power more affordable than thermal energy, and the upcoming Morena Solar Park will incorporate energy storage solutions to ensure reliable power supply even during non-solar hours. The state government has set an ambitious goal to generate 50 percent of its power needs from solar energy by 2030, backed by substantial investments from state-owned and private sector entities.
Maharashtra, another leading renewable energy state, has been aggressive in its green energy push with initiatives spanning renewables and hydrogen. The state has implemented the world’s largest agriculture feeder solarization project, redesigned as Mukhyamantri Saur Krishi Vahini Yojana 2.0, which envisages commissioning 16,000 MW of feeder level solar plants by December 2026. Additionally, Maharashtra has approved ₹8,562 crore for implementing its green hydrogen policy, demonstrating serious financial commitment to emerging clean energy technologies. These state-level initiatives, paired with localized incentives and policies, are creating a competitive environment that attracts both domestic and international investment.
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Global Engagement and Strategic Partnerships
The Davos engagement extended beyond investment pitches to include strategic dialogues with international partners and organizations. Minister Joshi held constructive discussions with Børge Brende, President and CEO of the World Economic Forum, focusing on the importance of global cooperation in addressing shared economic and developmental challenges. These high-level engagements underscored India’s commitment to multilateral platforms in shaping consensus around clean energy transition and climate action.
Bilateral meetings with international investors demonstrated strong interest from major global financial institutions. La Caisse, a Canada-based institutional investor, engaged in focused discussions about strengthening long-term climate and clean energy investments in India, with conversations centering on scaling solar, wind, and hybrid renewable projects, strengthening transmission infrastructure, and exploring green hydrogen and energy storage solutions. This dialogue aligns with La Caisse’s substantial climate commitment targeting $400 billion in climate-related investments by 2030.
The Ingka Group, which operates the IKEA retail business, expressed keen interest in entering India’s renewable energy sector in a significant manner, particularly in solar, wind, and hybrid solutions. Minister Joshi encouraged the group to scale up its engagement in India, leveraging the country’s stable policies and investment-friendly ecosystem. Such commitments from major multinational corporations demonstrate the growing confidence in India’s renewable energy market and its potential for delivering sustainable returns.
India also engaged with partner countries on bilateral clean energy cooperation. Discussions with Oman’s Economic Advisor focused on deepening India-Oman cooperation in renewable energy, highlighting India’s proven capability to scale solar, wind, green hydrogen, and energy storage solutions even in arid and desert conditions. These discussions covered potential collaboration on manufacturing and export of solar modules, electrolysers, and green hydrogen, investments in renewable-powered hydrogen hubs, integrated energy projects, and port-based export infrastructure. Such bilateral engagements position India not just as an importer of capital and technology but as a potential exporter of clean energy solutions and expertise.
Technology Integration and Innovation
India’s renewable energy strategy extends beyond traditional solar and wind to encompass cutting-edge technologies and innovative deployment models. The government is promoting integration of artificial intelligence with energy systems, with Minister Joshi delivering a keynote address at the session “Call to Action: Spotlight on the Global Mission on AI for Energy” at the World Economic Forum. This focus on AI-driven energy management reflects India’s commitment to leveraging digital technologies to optimize renewable energy deployment, improve grid stability, and enhance overall system efficiency.
The country is also making strides in emerging technologies such as geothermal and advanced nuclear energy as part of its comprehensive approach to achieving net-zero emissions by 2070. The government has launched a dedicated Nuclear Energy Mission with an allocation of ₹20,000 crore to develop at least five indigenously designed Small Modular Reactors by 2033 and promote advanced nuclear technologies. This diversified technology approach ensures that India’s clean energy transition is not overly dependent on any single technology pathway.
Energy storage technologies are receiving particular attention as essential enablers of high renewable energy penetration. Beyond conventional battery storage, India is promoting pumped storage hydroelectric projects, with 10 projects totaling 11,870 MW currently under construction. These long-duration storage solutions complement shorter-duration battery storage systems, providing the flexibility needed to manage the variability of renewable energy generation across different time scales.
Economic and Social Impact
India’s renewable energy expansion is generating substantial economic and social benefits beyond emissions reduction. According to government estimates, the transition saved India over $46 billion in pollution-related costs in 2025, avoided 410.9 million tonnes of CO₂ emissions, and delivered $31.7 billion in health benefits. These figures underscore that clean energy is not merely an environmental imperative but makes strong economic sense, delivering tangible financial returns through avoided costs and improved public health outcomes.
The employment impact of India’s renewable energy sector is equally significant. Under the Ministry’s skill development programs – Suryamitra, Vayumitra, and Jal-urja Mitra – over 31,829 local youth and technical workers have been trained and placed in renewable energy jobs. This human capital development is creating a skilled workforce capable of supporting the continued expansion of the sector while providing quality employment opportunities in emerging industries.
Grassroots programs are democratizing access to clean energy, ensuring that the benefits of the renewable energy transition reach ordinary citizens. The PM Surya Ghar Muft Bijli Yojana, which provides rooftop solar access, has already benefited over 1.8 million households, with the government targeting one crore (10 million) households by 2026-27. Similarly, the PM-KUSUM program is empowering farmers to solarize their energy needs, with plans for 4 million solar pumps that will reduce dependence on grid electricity and diesel while providing reliable power for agricultural operations.
Investment Climate and Policy Stability
India’s pitch at Davos emphasized that the country combines large demand with policy certainty, a growing manufacturing base, and strong state-level execution – the key factors required for attracting long-term global capital. This combination of attributes is relatively rare in emerging markets, where either demand is insufficient, policy frameworks are unstable, or execution capabilities are weak. India’s demonstrated ability to deliver on all these fronts simultaneously makes it an attractive destination for patient, long-term capital seeking sustainable returns.
The policy framework supporting renewable energy investment has been carefully designed to provide certainty while maintaining competitiveness. Standard bidding guidelines for tariff-based competitive bidding have been issued for various renewable energy technologies including solar, wind, wind-solar hybrid, and firm and dispatchable renewable energy projects. The Ministry of New and Renewable Energy has established a bidding trajectory for issuance of renewable energy power procurement bids of 50 GW per annum from fiscal year 2023-24 to 2027-28, providing visibility to investors about the pipeline of opportunities.
Fiscal incentives have been strategically deployed to de-risk investments and improve project economics. Inter-State Transmission System charges have been waived for inter-state sale of solar and wind power for projects to be commissioned by June 30, 2025, for green hydrogen projects until December 2030, and for offshore wind projects until December 2032. These waivers significantly improve project economics by reducing operational costs and making renewable energy more competitive with conventional power.
The Production Linked Incentive scheme for high-efficiency solar PV modules, with an allocation of ₹19,500 crore, has been instrumental in catalyzing domestic manufacturing capacity. This scheme has attracted investment commitments amounting to ₹48,120 crore and is expected to establish manufacturing capacity of 48 GW of fully integrated solar PV modules. Such targeted interventions demonstrate the government’s commitment to creating a complete domestic value chain that reduces import dependence while generating employment and building technological capabilities.
Global Leadership and South-South Cooperation
India’s renewable energy achievements are being leveraged to provide leadership and support to other developing countries, particularly in the Global South. As the current President of the International Solar Alliance Assembly, India is actively promoting South-South cooperation in clean energy deployment. Minister Joshi emphasized that India’s clean energy leap is being hailed as a model for the Global South, with the country’s approach emphasizing affordability, resilience, and inclusivity to ensure that clean energy is accessible to households, farmers, and small businesses.
During a roundtable session alongside Maharashtra Chief Minister Devendra Fadnavis and Zimbabwe’s Foreign Affairs Minister, Minister Joshi shared India’s experience in scaling rooftop, agricultural, and decentralized renewable energy solutions specifically tailored for Global South countries. This knowledge sharing goes beyond rhetoric to include concrete initiatives such as the PM Surya Ghar Muft Bijli Yojana for rooftop solar adoption and PM-KUSUM for solar-powered agriculture, which are expanding clean energy access for households and farmers while reducing costs.
India’s approach offers a blueprint that developing countries can adapt to their local contexts, available resources, and specific goals. Unlike many developed nation approaches that are capital-intensive and technology-heavy, India’s model emphasizes cost-effectiveness, local manufacturing, and incremental deployment that matches countries’ absorptive capacity and financial constraints. This pragmatic approach makes India’s experience particularly relevant for countries in Asia, Africa, and Latin America that face similar development challenges.
The launch of the Green Investment Handbook titled “The India Story” at the India Pavilion during WEF 2026 further demonstrates India’s commitment to sharing its experience and attracting investment. The pavilion highlighted India as a future-ready investment destination across manufacturing, infrastructure, renewable energy, technology, and innovation, all aligned with the vision of Viksit Bharat 2047 (Developed India 2047).
Challenges and Path Forward
While India’s renewable energy story is overwhelmingly positive, the country continues to face challenges that must be addressed to sustain the momentum of growth. Grid infrastructure remains a critical constraint, with renewable energy curtailment occurring despite sufficient capacity due to grid congestion, forecasting gaps, and rigid contract-based scheduling. Only about 7-9 percent of electricity is traded on power exchanges, restricting nationwide optimization as most power remains locked into long-term Power Purchase Agreements.
Distribution company (DISCOM) finances continue to strain the sector despite improvement schemes like UDAY and RDSS. Aggregate Technical and Commercial losses hover around 16 percent, while tariff under-recovery persists, limiting the ability of DISCOMs to invest in modern grids and flexibility solutions. Addressing these fundamental issues in the power distribution sector is essential for enabling higher renewable energy penetration and ensuring that clean energy can be effectively utilized.
Supply chain vulnerabilities have also emerged as a concern, with China tightening export controls around critical minerals and rare earth elements essential for wind turbines, power electronics, and storage technologies. While India’s downstream solar manufacturing capabilities have expanded dramatically, upstream capabilities in polysilicon and wafer production remain largely inadequate, leaving the sector partially exposed to external shocks and price volatility.
Looking ahead to 2026 and beyond, India’s renewable energy growth trajectory is expected to remain robust, though the pace may moderate in certain periods. A significant volume of solar capacity is likely to be commissioned before the June 2026 deadline for implementation of the Approved List of Cells and Manufacturers, boosting installations in the first half of the year. However, post this deadline, capacity additions could moderate unless the government provides clarity or an extension to the timeline.
The key to sustaining India’s renewable energy momentum lies in continued policy reforms, coordinated action across all energy stakeholders, faster execution of planned projects, and addressing structural constraints in grid infrastructure and power distribution. With clear long-term policy direction and sustained implementation efforts, India can meet and potentially exceed its target of 500 GW of renewable energy capacity by 2030.
Conclusion
India’s presentation at the World Economic Forum 2026 in Davos successfully positioned the country as a stable, future-ready destination for clean energy investment with an unprecedented $300-$350 billion capital requirement by 2030. By highlighting its achievements in cost reduction, manufacturing scale-up, and effective execution, India demonstrated that it offers not just a large market but a complete ecosystem for successful renewable energy investment.
The combination of competitive renewable tariffs, expanding domestic manufacturing, supportive policy frameworks, strong state-level execution, and proven delivery capabilities makes India uniquely attractive among emerging markets. For global investors seeking predictable growth opportunities in sustainable energy, India offers the rare combination of scale, speed, and stability that can deliver long-term returns while contributing to global climate goals.
As the world transitions to clean energy, India’s emergence as a renewable energy powerhouse represents not just a national transformation but a significant contribution to global decarbonization efforts. With the largest democracy demonstrating that rapid economic growth and environmental sustainability can progress together, India’s renewable energy journey offers both inspiration and a practical roadmap for countries worldwide seeking to accelerate their own clean energy transitions.
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By: Montel Kamau
Serrari Financial Analyst
23rd January, 2026
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