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India Poised to accelerate Clean Energy Expansion for underserved markets

Published in General Saturday, 06 October 2018 12:28

 

Catalytic Financing Crucial to Growth to Achieve its Ambitious Climate Goals 

 India’s goal to dramatically ramp-up solar and wind energy capacity could get a major boost through catalytic financing — according to new analysis released by the Indian Renewable Energy Development Agency (IREDA) in partnership with the Natural Resources Defense Council (NRDC) and the Council on Energy, Environment and Water (CEEW) during RE-Invest conference in New Delhi today.

This report outlines the need for financing instruments and institutional mechanisms that jumpstart the clean energy expansion. These solutions could attract much needed low-cost finance for clean energy projects and open the market to India’s huge clean energy potential, while also helping achieve climate goals.

“For India to meet the vital challenge of protecting the climate and extending energy access to millions of Indians, then the world of finance must be involved full force,” said Douglass Sims, Director of Strategy and Finance, Center for Market Innovation at NRDC. 

Through robust policies and initiatives, India’s Ministry of New and Renewable Energy (MNRE) has laid the foundation for a clean energy expansion. For example, the National Solar Mission has boosted India’s large-scale solar energy market from a mere 17 megawatts (MW) in 2010 to more than 20 gigawatts (GW) in 2018.

To achieve this growth, several public financial institutions, along with private banks and non-banking financial companies (NBFCs), provided debt to the utility-scale renewable energy sector. These factors, combined with declining equipment costs, have resulted in impressive growth in investment and deployment in utility-scale renewable energy, especially over the past three years. 

“The analysis on catalytic finance and green windows and what this means for clean energy advancement in India has come at an opportune time during RE-Invest. It was valuable to collaborate with strong knowledge partners like NRDC and CEEW and we look forward to working together to unleash attractive finance for clean energy so that India can achieve its targets,” said IREDA Chairman K.S. Popli.  

The report released today is part of NRDC and CEEW’s series on clean energy finance with stakeholders as well as key agencies in the government, to help meet energy needs.

“India is at a critical crossroads. To reach India’s ambitious clean energy goals while providing electricity for millions across the vast country, India could tap into emerging financing mechanisms. Catalytic finance and new tools, such as “green windows” can help put India on the road to a clean energy future at home while protecting our climate worldwide,” said Poonam Sandhu, Senior Finance and Management Consultant.

“India can become the largest clean energy market in the world to operate on market-friendly principles and RE-Invest 2018 is an opportunity to showcase that potential to the world. However, attractive low-cost finance will be crucial to meet India’s renewable energy ambitions and climate commitments,” said Dr. Arunabha Ghosh, CEO of CEEW. 

The new report, Clean Energy for All, Framework for Catalytic Finance for Underserved Clean Energy Markets in India can be found here:

https://www.nrdc.org/resources/clean-energy-all-framework-catalytic-finance-underserved-clean-energy-markets-india

 

 

 

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Business Digest August September 2018

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