“To support the scalable and cost-effective production of green hydrogen under India's National Green Hydrogen Mission, the financial strategy must focus on a mix of public and private sector investments alongside targeted policy incentives. ”
Which key technological innovations are crucial for India to reach its 500 GW renewable energy target by 2030, following its 200 GW milestone?
For a country like India to achieve its ambitious target of 500 GW of renewable energy capacity by 2030 and 2100 GW by 2040, there will be a need to leverage several key technological innovations. These include advancements in energy storage solutions, such as large-scale batteries (BESS) and grid-scale storage technologies, to address intermittency issues of solar and wind power. More efficient and cost-effective innovations, such as bifacial and perovskite solar cells, will form an essential part of the capacity. The next-generation turbine designs will benefit wind energy by letting it work at lower wind speeds, especially in more varied environments. Smart grids and digital technologies enabling real-time monitoring and managing energy flow will be decisive in integrating a higher share of renewables into the grid.
Last but not least, green hydrogen technologies are expected to grow both as a storage medium and an industrial fuel, thus helping decarbonize hard-to-abate sectors and providing a flexible backup for renewable generation. These innovations, coupled with robust policy frameworks and higher investment, will be essential in helping India meet its renewable energy targets while ensuring grid reliability and economic sustainability.
Which regulatory policies are needed to integrate emerging technologies into renewable energy systems, while encouraging investment?
Successful integration of emerging technologies into renewable energy systems requires regulatory policies that strike a balance between fostering innovation, attracting investment and ensuring long-term sustainability.
First, clear and flexible standards are essential to ensure new technologies meet safety, efficiency, and environmental guidelines without stifling creativity. The policy must provide a predictable long-term investment environment with incentives such as tax credits or grants for clean tech research and development. As public and private sectors work together, they can accelerate the deployment of technology, ensuring that emerging solutions – whether in energy storage, smart grids, or advanced solar – are integrated into existing infrastructure. These efforts should seek to achieve these goals with a policy framework that drives growth in renewable energy and fosters a competitive, transparent market for these cutting-edge solutions.
With the National Green Hydrogen Mission vital to India’s energy future, how do you envision structuring the financial strategies for scalable, cost-effective production?
To support the scalable and cost-effective production of green hydrogen under India’s National Green Hydrogen Mission, the financial strategy must focus on a mix of public and private sector investments alongside targeted policy incentives.
Governments could also facilitate de-risking in the sector by providing early-stage financing to encourage technology development, infrastructure building, and pilot projects through subsidies or grants. This could also unlock private sector capital for large-scale production and hydrogen storage facilities. Public-private Partnerships (PPP) are likely to ensure long-term investments aligned with national energy goals. Green bonds or other sustainable finance mechanisms could attract greater investment from the institutional side. Policy frameworks, such as RPOs, could also provide demand assurance with respect to green hydrogen, making it more commercially viable. Tax incentives, carbon pricing, and price support at the early stage of production would continue to reduce costs and allow for a step-by-step transition to market competitiveness as economies of scale are achieved. The strategy can boost innovation, decrease production costs, and make India the leader in the green hydrogen economy globally by creating the right regulatory environment.
In what ways can India optimize its regulatory environment to attract foreign investment in renewables, while balancing energy security and sustainability goals?
To optimize its regulatory environment and attract foreign investment in renewables, India can adopt a comprehensive approach that streamlines policies while ensuring energy security and sustainability. This will support policy optimization in core concepts of energy security and sustainability. Approval procedures for such renewable energy projects should be streamlined with long-term policy clarity, tax incentives and subsidies offered to investors. India can also, for instance, establish a robust grid infrastructure capable of hosting solar and wind renewable sources, reducing risks related to uncertainty and ensuring a reliable supply for investors.
To ensure energy security, the government must encourage diversification in the energy mix and emphasize the local content of renewable energy to reduce reliance on imports.
This would improve investor confidence and strengthen the dynamics of sustainable growth through public-private partnerships and greater openness in the regulatory framework. Making sustainability criteria integral to renewable projects will drive growth that aligns with ecological and social objectives, as the policy is aligned with economic priorities and environmental concerns. India should, therefore, tread this path while attracting a significant inflow of foreign investment and meeting its energy needs sustainably.
How do you assess the financial risk of CCU projects in global carbon markets, and can carbon credits realistically offset costs and drive profitability?
Financial risk assessment on any new venture into Carbon Capture and Utilization (CCU) in the global carbon market would be done in layers, with technical and market uncertainties underscoring a series of concerns. The first concern is capital investment in CCU infrastructure, followed by technological feasibility and scalability for carbon capture, and finally, the rules governing carbon pricing and credit allocation. Another important factor is market volatility, which encompasses fluctuations in the price of carbon credits and demand for carbon offsets, both of which can impact profitability. While carbon credits can offset some operational and capital costs, several factors will need to fall into place to achieve profitability, including a project’s ability to produce high-quality credits, a record of long-term stability for carbon prices, and the dynamic regulatory environment. While revenues from carbon credits may be available, they may not be sufficient to reduce all financial risks in the early stages of CCU projects. Thus, a diversified strategy is also crucial for CCU projects, combining revenues from carbon credits with other business models, such as DAC or innovation of low-carbon products, to ensure long-term financial sustainability and profitability.
In the coming years, which technology do you foresee being the most transformative for India’s renewable sector?
In the coming years, India’s renewable sector will likely be profoundly transformed by advancements in energy storage technologies (BESS), particularly through innovations in battery storage and grid integration systems. The intermittency challenge of inconsistent power generation will still be one key constraint with which the country must contend as it continues scaling up its solar and wind energy production. Additionally, further advancements in efficient and cost-effective storage of batteries, be it through advancement in lithium-ion or new technologies like solid-state batteries, will allow India to store surplus renewable energy and deploy it in peak demand hours, increasing grid stability. Moreover, smart grid technologies based on AI and IoT will help optimize energy distribution, reduce transmission losses, and improve efficiency. Reducing fossil fuel consumption without compromising the ever-growing demands of its population and economy holds the potential to make India the leader in sustainable energy.
About Partha Das:
Partha Das, is a seasoned financial expert with more than two decades of experience in the energy sector, spanning both traditional oil and gas and renewable energy. As the CFO of IndianOil NTPC Green Energy Private Limited – a joint venture between Indian Oil Corporation and NTPC Green Energy – he is driving financial strategy to support India’s clean energy goals.
His expertise spans finance, energy and renewable initiatives, complemented by a comprehensive knowledge of international trade, marine insurance, and contract management. Partha’s blend of technical expertise and strategic vision makes him a pivotal figure in advancing India’s green energy transition, driving sustainable growth in both conventional and renewable energy sectors.
