The use of novel financing measures along with higher participation from lenders and international RE players would play a pivotal part in attaining the green power target.
Modi government’s ambition of 175 GW renewable power by 2022 may perhaps fall quick of the target, as it would call for at least Rs 3.5 lakh crore from international sources, stated a report by India Ratings. One of the essential barriers to attract investments in the Indian green power sector is the lack of appropriate financing structures such as versatile repayments to navigate counterparty concerns, widespread bill discounting, and low-price capital to optimise the return on investments, the report added. However, the use of novel financing measures along with higher participation from lenders and international RE players would play a pivotal part in attaining the green power target, it additional stated.
The current transition in the Indian renewable power sector is believed to be a safer return creating investment than just before. In this context, the part of international RE players becomes additional crucial, provided their out there price of funds benefit, access to a massive pool of funds, and powerful balance sheets.
Last month, Prime Minister Narendra Modi had stated that there are enormous renewable power deployment plans for the subsequent decade, which are probably to create small business prospects of the order of about $20 billion per year. Inviting the international investors, developers, and corporations to join India’s renewable power journey, PM Modi had added that India has a incredibly liberal foreign investment policy for renewables and the foreign investors can either invest on their personal or they can collaborate with an Indian firm. After the achievement of PLI in electronics manufacturing, the government has decided to give related incentives to higher-efficiency solar modules.
Meanwhile, India has set an ambitious target of 450GW of RE by 2030, though the nation is currently functioning on reaching a quick-term target of 175GW of RE by 2022. Out of the 2022 target, India has installed 88.7 GW capacity of green power till August 2020.