A whole world of new business opens up
Green energy firms in India bring opportunities, says Kirsty McBirnie
In a historic first, renewable energy overtook coal as the world’s leading source of electricity in the first half of 2025, according to global energy think tank Ember.
The data showed that developing countries led the growth in clean energy, with India in particular adding enough new solar and wind capacity to allow it to cut back on coal and gas.
This milestone news followed a year of rapid green energy expansion for India, which now has the third largest installed solar power capacity and the fourth largest installed wind capacity worldwide. This adds to India's large-scale investment in nuclear, green hydrogen and biomass energy.
In July this year, India's government announced it had met the demands of the 2030 targets set out in the Paris Agreement five years early, with non-fossil fuel sources now making up half of the country’s electricity capacity.
Yet India still depends on fossil fuels, particularly its domestic supply of coal, which accounts for half of the country’s energy capacity and approximately 70% of its electricity generation.
The urgent need to build robust electricity transmission infrastructure and the even more pressing need to generate increasing amounts of energy, regardless of source, each year, presents part of the challenge.
India has ambitious plans to tackle its reliance on coal and continue its clean energy expansion, with a target of 500 gigawatts by 2030.
Achieving this will require international collaboration – and Scotland is particularly well placed to contribute to this endeavour.
Scotland brings world-leading expertise in offshore wind, tidal energy and hydrogen, complementing India’s renewable power interests and highlighting huge opportunities for Scottish businesses.
The UK-India Free Trade Agreement, signed in July 2025, includes a significant green energy component which aims to accelerate trade in clean technologies.
The agreement is expected to boost the growth of both the Indian and UK economies and has the potential to provide substantial opportunities for Scottish businesses seeking to expand into the Indian market.
Offshore energy presents a major opportunity, with India’s offshore wind leasing target of 37 GW by 2030 and its technical potential exceeding 70 GW, which aligns closely with Scotland’s sector-leading experience in the financing, project development, construction and operation of offshore wind projects.
Financing these ambitious goals is not without its challenges; the critical hurdle for investors being structuring deals that address regulatory, currency and counterparty risks to secure returns.
Both traditional and innovative financing models are available, such as green bonds, blended finance and public-private partnerships. Financing models where multilateral development banks and international financial institutions play a key role are also options.
Those willing to engage with the financial and legal complexities will find solutions that unlock significant opportunities.
Dentons, with its partner firm Dentons Link Legal, in India, provides support in project development, structuring, financing, risk assessment and due diligence, as well as advisory services for Indian stakeholders. With a local presence in India, it also advises on regulatory framework and investment regulations and incentives for foreign investors to support Scottish businesses looking to participate in India’s green transition.
Kirsty McBirnie is a partner in the Banking and Finance practice in Dentons' Edinburgh office and a member of the firm's India taskforce. This article was co-written by Linzi Hedalen, a partner in the Projects practice at Dentons.