India's annual clean energy investment projected at $145b by 2035, says IEEFA

Debt structure will determine the pace of capacity expansion, report says.

India’s annual investment in renewables, storage, and transmission is projected to rise from $68b by 2032 to $145b by 2035, according to the Institute for Energy Economics and Financial Analysis (IEEFA).

This comes as the country targets 60% non-fossil fuel energy in its overall mix by 2035 and 500 gigawatts of renewable energy by 2030.

The report says the scale of investment ties the energy transition to the structure and depth of India’s debt markets.

It adds that long-lived renewable assets depend on long-tenor amortising debt, placing debt availability, tenor, and cost at the centre of capacity expansion.

IEEFA says credit markets are separating renewable and thermal assets. Renewable assets show stronger margins, lower operating costs, and wider access to capital, whilst thermal assets face tighter access to international capital markets.

All outstanding USD-denominated bonds from Indian power utilities relate to renewable or hydro assets.

The report cites the 2021 offshore bond repayment by Tata Power as a withdrawal point for thermal-linked offshore issuance.

IEEFA said India’s corporate bond market remains shallow and dominated by loans, as nearly 80% of debt across eight power utilities comes from loans.

It added that bond market participation remains limited despite annual issuances exceeding $500b in 2025.

The eight utilities analysed are Adani Green Energy Limited, Adani Power, JSW Energy Limited, ReNew Power, NLC India Limited, NTPC Limited, SJVN Limited, and Tata Power, representing about one-third of India’s installed power capacity.

The report highlights a reliance on international capital flows and states that mobile foreign capital creates exposure to reallocation during geopolitical stress.

It calls for greater participation from domestic institutional investors, including pension funds, insurers, and provident funds, as a stabilising source of long-term finance.