India's Power Sector: A $2.2 Trillion Path to Renewable Dominance

India will need USD 2.2 trillion investment in its power sector over 20 years. Aiming for 500 GW of renewable energy by 2030 and adding 97 GW coal thermal power by 2034-35, India focuses on regulatory frameworks and market design for growth. A flexible approach is essential.

In a significant push towards energy transformation, India will require an estimated investment of around USD 2.2 trillion in the power sector over the next two decades, revealed Union Power Secretary Pankaj Agarwal at the Bharat Electricity Summit 2026.

The country targets adding 500 GW of renewable energy by 2030 alongside 97 GW of coal-based thermal power by 2034-35. This ambitious vision is predicated on robust investment and strategic focus on regulatory frameworks, market design, and institutional innovation.

Efforts like the PM-Kusum scheme showcase how India's energy policies transform farmers into energy producers. The sector's peak demand deficit has reduced sharply, while renewable energy tariffs have plummeted, establishing India as a manufacturing and export powerhouse.