AIIB Commits Rs 7.3 Billion To Boost India’s Renewable Energy Plans
Notable because
India needs to considerably scale up its current RE capacity to achieve its 2030 target of 500 GW of non-fossil installed capacity. The RE bidding trajectory announced last year is a step in the right direction, with 47.5 GW of tenders issued by the four implementing agencies in FY24. Converting tenders to actual capacity requires securing capital from all available sources, including multilateral development banks, to mobilise the ~USD 200 billion in investments needed.
What to look out for in the months ahead
The scale of India’s RE financing challenge is so significant that traditional sources such as banks and non-banking financial companies (NBFCs) may not have sufficient headroom to mobilise adequate capital by themselves.
How soon can we expect the domestic debt capital market (bonds) to come into its own to finance RE capacity, primarily for private developers?