THEBUSINESSBYTES BUREAU

NEW DELHI, JANUARY 22, 2026

     India’s energy transition has been consciously crafted as a powerful engine for industrialisation, employment generation and global competitiveness, offering a replicable model for emerging economies, Union Minister for New and Renewable Energy Pralhad Joshi said at the World Economic Forum Annual Meeting 2026 in Davos. He underlined that India’s clean energy journey is not merely about decarbonisation, but about creating economic value, strengthening energy security and lowering costs for industry and households.

Addressing a high-level session on “Energy: The Great Funding Gap,” the Union Minister said that under the leadership of Prime Minister Narendra Modi, India has transformed its energy transition into a people-centric development movement. He noted that the country has already achieved 267 GW of installed non-fossil energy capacity, with renewables accounting for around 52 percent of total installed power capacity, well ahead of earlier timelines. According to him, India views clean energy as a growth enabler that supports rapid industrial expansion while making electricity more affordable across sectors.

Highlighting the socio-economic impact of decentralised renewable energy programmes, Joshi said flagship initiatives such as PM Surya Ghar: Muft Bijli Yojana have enabled the installation of rooftop solar systems in 2.7 million households over the last two years, with a target of reaching 10 million households and generating around 30 GW of power. Under PM-KUSUM, more than 2.1 million farmers have solarised their irrigation pumps, reducing dependence on subsidised grid electricity while creating opportunities for farmers to earn additional income by selling surplus power. “These initiatives are not only providing affordable energy but are also turning consumers into ‘prosumers’, improving household incomes and rural livelihoods,” the Minister said.

The Union Minister explained that the expansion of renewables has played a critical role in reducing electricity tariffs by lowering subsidy burdens on distribution companies. He cited agricultural power reforms through solarisation of pumps as a key example, noting that replacing high-cost subsidised electricity with low-cost solar power has translated into lower tariffs for industry and households. Electricity costs are coming down due to the renewable energy revolution, marking a historic shift in India’s power sector, he observed.

Joshi also highlighted the rapid development of a complete domestic clean energy manufacturing ecosystem. He said India has already established 144 GW of solar module manufacturing capacity, while solar cell manufacturing has reached 27 GW and is expected to expand to around 50 GW in the near future. The country is also moving towards completing the entire value chain, with planned manufacturing of wafers and ingots set to commence shortly. Alongside solar, India is scaling up wind energy, battery storage and pumped storage solutions to ensure grid stability and reliability, efforts that are generating large-scale employment and strengthening industrial competitiveness.

Addressing concerns related to energy security, the Union Minister said India is pursuing an integrated approach that combines renewables with storage solutions, pumped storage hydro and nuclear power. He added that legal and policy reforms are underway to expand nuclear energy capacity and strengthen base-load power. India’s experience, he said, demonstrates that energy security, affordability and sustainability are not competing priorities, but objectives that can be achieved together through coherent policy design, scale and domestic manufacturing.

On the sidelines of the World Economic Forum, Joshi held a series of high-level bilateral engagements with global industry leaders and foreign ministers to advance clean energy investments and international partnerships. He met Dr. Tareq Abu Ghazaleh, Minister of Investment, and Ms. Zeina Toukan, Minister of Planning and International Cooperation of Jordan, to explore enhanced cooperation and investment opportunities. In discussions with Amon Murwira, Minister of Foreign Affairs and International Trade of Zimbabwe, the Union Minister spoke about deepening collaboration in renewable energy and noted Zimbabwe’s appreciation of India’s support through the International Solar Alliance, including the establishment of the STAR-C Centre.

The Union Minister also met Dr. Fatih Birol, Executive Director of the International Energy Agency, to discuss strengthening India-specific data, analysis and policy support, as well as innovative financing mechanisms to lower the cost of capital. Meetings were held with José Entrecanales Carrión of Acciona SA on expanding utility-scale solar, wind and hybrid storage projects, and with ENGIE CEO Catherine MacGregor on deepening long-term investments in India’s clean energy ecosystem. Discussions with Dave Ernsberger, President of S&P Global, focused on developing robust global frameworks for credit assessment and ESG standards tailored to renewable energy markets, while talks with Aman Joshi of Bloom Energy explored distributed and reliable power solutions, including fuel cell technologies for industrial clusters and data centres.

Joshi said India’s clean energy journey offers practical and scalable lessons for emerging economies seeking to drive growth, jobs and competitiveness through a well-designed and inclusive energy transition.