Competing conviction: India’s Reliance Industries is backing the country’s energy transition and its legacy

Four years ago, Reliance Industries Limited (RIL) chairman Mukesh Ambani allocated $10bn for a ‘New Energy’ business. It was a notable change of tide, given the Indian conglomerate’s large-scale petroleum refining operation that Ambani spearheaded back in the 1990s.

That same year, RIL began work on a new integrated renewable energy manufacturing hub named after the group’s founder: the Dhirubhai Ambani Green Energy Giga Complex.

At the 2025 AGM, Anant Ambani – the chairman’s son - gave shareholders a glimpse into its scale. A build area four times the size Tesla’s gigafactory, a steel order large enough to build 100 Eifel Towers and a stretch of cables enough to ‘reach the moon and back’.

The tale of an Indian petroleum behemoth embracing the appeal of renewable energy begs two questions – why Reliance and why now?

New energy, old spirits

The gigafactory’s location adds to its symbolism. It is based in Jamnagar – the home of RIL’s largest refining complex. “Jamnagar is the face of New Reliance and New India”, said Anant Ambani in his address to shareholders.

“Products from the giga factories would be deployed for delivering round-the-clock renewable power and producing green chemicals, including green ammonia, e-methanol, and sustainable aviation fuel”, Ambani explained.

Alongside the gigafactory, Reliance has also expanded into other opportunities.

“In Kutch, Gujarat, we are developing one of the world's largest single-site solar projects spanning 5,50,000 acres of arid land – three times the size of Singapore”, Ambani noted.

Ambani also mentioned other simultaneous forays into the energy transition opportunity - solar PV, battery storage, green hydrogen and sustainable aviation fuel are all part of the plan.

Legacy

The renewable energy embrace however, is unlikely to signal a pivot for the conglomerate. In what was his first ever address at a Reliance AGM, Anant Ambani was quick to point out that legacy businesses have been doing well too.

The exploration business, where nearly a third of India’s natural gas supply comes from, earned a before tax income of $2.5bn. Production from the KG-D6 gas well was up 4% and new drilling is expected in 2026. Reliance is therefore seemingly convinced that the investment case for renewables does not necessarily erode the appeal of its legacy.

Investor interest

Reliance now joins a group of investors who, despite India’s fossil fuel dependence, are optimistic over the long-term. That group includes Norway’s largest pension provider, KLP.

In December last year, the fund announced a NOK 1.1bn ($100m) investment in an Indian grid company, in partnership with Norfund. The two entities acquired a 49% stake in an Indian solar farm two years prior.

“KLP's interest in investing in renewable energy in India is primarily related to the sector's financial attractiveness and the KLP group's strategy for sustainable and responsible investment”, says Eric Nasby, an investment analyst at KLP.

“We have invested in solar and wind power projects in India, in addition to electricity transmission networks. We continue to see opportunities in hybrid parks that often can combine solar and wind power with battery storage, as well as transmission”, Nasby told Net Zero Investor.

KLP’s investment thesis takes into account India’s current energy mix. 50.5% of the country’s installed power capacity still comes from fossil fuels.

“As we all know, India is one of the world's fastest growing markets and still very dependent on coal-fired power generation”, notes Nasby.

“As a result of this, investments in India have significant climate benefits. India also has a large well-functioning market for these investments and as a result it has become an important part of our investment portfolio”, he adds.

India’s renewable energy roll-out has picked up pace in recent years. As of June 2025, renewable energy installed capacity stood at 226.9 GW. The roll-out has been largely led by solar which accounts for 47% of non-fossil fuel power capacity.

Year-on-year capacity additions are driven by investors such as KLP backing New Delhi’s renewable energy vision. With Reliance joining their ranks, confidence and competition is now on the rise.

For the AGM’s list of attendees that included Meta boss Mark Zukerberg, Google chief executive Sundar Pichai and Disney’s Bob Eglar, both would seem palpable.