India’s target of achieving 175 GW of renewable energy capacity by 2022 might appear ambitious, but it is crucial as it will have a positive impact on the country’s economic growth, energy security and the fight against climate change. Financing is emerging as the key challenge to this vision, slowing down the pace of growth; as of December 2019, over 50 percent of the 2022 target is yet to be achieved. This brief outlines India’s existing renewable energy financing landscape and identifies the challenges therein. The most critical issue facing India’s financing framework is the lack of innovative financing options that will offer larger sums at lower interest rates and for longer durations. Overall, sound financing will boost the number and size of the projects, ultimately translating to accelerated renewable energy growth.
Full article, is published in Observer Research Foundation, can be accessed here.