ONGC plans to invest Rs 1 trillion in clean energy projects by 2030

The Dehradun-headquartered company is planning to invest a huge amount of Rs 1 trillion ($11.5 billion) to build a renewable portfolio of 10 gigawatts by 2030

India’s Oil and Natural Gas Corporation (ONGC), a state-owned oil and gas exploration and production company, is aiming to increase its investments by a significant 100 per cent in new energy projects like wind and power generation. ONGC is planning to achieve this target by the end of the decade to cut its carbon footprint, according to a report by The Economic Times.

 

The Dehradun-headquartered company is planning to invest Rs 1 trillion ($11.5 billion) to build a renewable portfolio of 10 gigawatts by 2030, marking the 100 per cent increase from Rs 10 billion in the current fiscal year. 

 

ONGC operates both domestically and internationally, with a presence in several countries. It is also involved in the exploration of renewable energy sources and the production of petrochemicals.

 

ONGC’s push for green energy

 

In an interview with The Economic Times, the Director of Finance at ONGC, Vivek Chandrakant said, “We are getting into green energy because we do believe India requires a lot more energy in addition to fossil fuels. For us, it is a logical case to move into newer sources of energy.”

 

According to the news report, ONGC also aims to allocate capital expenditure towards 25 compressed biogas plants, hydro projects, and the production of 1 million tons of green ammonia, which includes 180,000 tons of green hydrogen capacity, in addition to 193 megawatts of solar and wind energy.

 

The global renewable energy sector is experiencing significant growth, driven by technological advancements, supportive policies, and increasing environmental awareness.

Global outlook and market dynamics

According to a Reuters report, the cost of clean energy technologies, including wind, solar, and battery storage, is expected to continue decreasing. A BloombergNEF report indicates that these technologies are already more affordable than new coal and gas plants in nearly all markets worldwide. Despite trade barriers, the report predicts a further cost reduction of 2-11 per cent this year and 22-4 per cent by 2035. 

 

The International Energy Agency (IEA) forecasts that the renewable energy share in the electricity sector will expand from 30 per cent in 2023 to 46 per cent by 2030, with solar and wind accounting for almost all this growth.