Shortage of funds in the green energy sector


The energy committee, in its latest report, noted that India is targeting the installation of 175 GW of renewable energy by 2022 and has pledged to increase renewable energy capacity to 500 GW by 2022. 2030.

A parliamentary panel has suggested that the government could ask banks and financial institutions to set aside a share of their investments in the renewable energy sector to meet the growing demand for funds in the sector.

The energy committee, in its latest report, noted that India is targeting the installation of 175 GW of renewable energy by 2022 and has pledged to increase renewable energy capacity to 500 GW by 2022. 2030.

But while the Union government has considered an additional investment of around 17 trillion and the country needs 1.5 to 2 billion of annual investments, investments for several years are of the order of 75,000 crores only, he said.

“The ministry could explore the possibility of prescribing a renewable energy financing obligation…for banks and financial institutions to invest a specific percentage of investment in the renewable energy sector,” the panel suggested.

“Since green banks have emerged as an innovative tool to accelerate clean energy financing globally, the government should consider establishing a green banking system that can address the persistent challenges related to the financing…”, said the expert group’s report, submitted to Parliament. . According to data provided by the government to the panel, the Indian Renewable Energy Development Agency (IREDA), a specialized public sector financial institution, has funded more than 2,800 renewable energy projects with loans worth 96,250 crores to add more than 16,165 MW of green power. “IREDA is constrained to meet the financing needs of large capacity projects, mainly due to exposure standards and its weak capital base,” he added.

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