Renewable Energy

Power Finance Corporation to Lend Rs 2.37 Lakh Crore to 20 Clean Energy Projects

Riddhi Mukherjee

Notable because

India would require INR 13.9 lakh crore (~USD 200 billion) to install 450 GW of RE by 2030. PFC can play an important role in bridging the gap between the required and current finances available to RE technologies. In PFC’s loan portfolio, the share of conventional generation sources is steadily declining, with a shift in focus to RE-based generation. In addition, PFC’s commitment will also cover projects related to green hydrogen and battery storage.

What to look out for in the months ahead

PFC as an entity has been historically lending to state-owned gencos and discoms. Will its ongoing shift towards RE also coincide with a shift in balance towards the private sector? PFC plans to invest in offshore wind, pumped hydro storage, and solar module and cell manufacturing. Will investments in such technologies be increasingly routed through the PFC’s GIFT City subsidiary, which is currently awaiting RBI approval?