UK invests $300M in India renewable energy

May 19, 2026

India’s renewable energy sector has received a major boost as the UK unveiled a $300 million (£224 million) green energy investment platform aimed at accelerating the country’s transition to clean power. The initiative comes as India, now the world’s third-largest renewable energy market, works to bridge an estimated $160 billion annual financing gap to achieve its ambitious 2030 climate and energy goals.

The new platform, named North Star, is backed equally by British International Investment and Copenhagen Infrastructure Partners, with each organization contributing $150 million. The fund will support large-scale solar, wind, battery storage, and hybrid renewable energy projects across India.

North Star is projected to produce more than 4 million megawatt-hours of renewable electricity every year while cutting approximately 4 million tonnes of carbon emissions annually. The platform marks the first major investment under British Climate Partners, a £1.1 billion climate finance program launched recently by British International Investment to support sustainable growth across emerging markets.

Leslie Maasdorp, CEO of British International Investment, described North Star as a key milestone in mobilizing private capital for clean energy infrastructure. He emphasized that the partnership with Copenhagen Infrastructure Partners is expected to attract additional international investment into India’s rapidly expanding renewable energy sector over the coming years.

India has emerged as a global leader in clean energy development. In June 2025, the country achieved 50% of its installed electricity capacity from non-fossil fuel sources — reaching its Paris Agreement target five years ahead of schedule. Earlier this year, India surpassed 150 gigawatts of installed solar capacity and added a record-breaking 44.61 gigawatts of renewable energy in the last financial year, nearly doubling the previous year’s expansion.

Despite this rapid growth, financing remains one of the biggest obstacles to achieving India’s target of 500 gigawatts of non-fossil fuel energy capacity by 2030. Many renewable energy developers continue to face funding shortages when moving projects from planning stages to construction and operation.

Clean energy growth has also been concentrated in a few leading states, including Rajasthan, Gujarat, and Maharashtra, while regions such as Bihar, Odisha, and Uttar Pradesh have seen slower progress in renewable energy infrastructure development.

Peter Jannik Sjøntoft, partner at Copenhagen Infrastructure Partners’ Growth Markets Funds, said the platform would provide long-term investment for scalable renewable energy projects that strengthen India’s energy security and support national decarbonization efforts.

The wider British Climate Partners initiative is expected to mobilize up to £3.5 billion in private investment throughout its lifecycle, with total climate finance commitments potentially reaching £4.6 billion across India and rapidly developing economies in South and Southeast Asia, including Philippines, Indonesia, and Vietnam.

The announcement arrives amid broader debates surrounding UK government spending cuts, including reductions in climate finance budgets that have faced criticism from advocacy and human rights organizations.

UK Development Minister Baroness Jenny Chapman stated that the initiative reflects growing demand from partner countries for investment-driven partnerships rather than traditional aid models. She highlighted the importance of empowering nations to attract investment, strengthen public systems, and take greater control of their long-term economic and environmental development.

According to Chapman, traditional development finance alone is no longer sufficient to address today’s global climate and infrastructure challenges, making collaboration between governments, investors, and private-sector partners increasingly essential for sustainable growth.