40 banks and NBFCs recently sanctioned USD 10.7 billion worth of commitments for financing renewable energy projects in the country made at the Re-Invest event held in February last year. Of this amount, USD 4.4 billion has already been dispersed by financial institutions.
Re-Invest 2015, a government-organized “meet and expo” was conducted in New Delhi, and is India’s flagship event for the promotion of renewable energy development and investment in the country. As part of the event, these financial institutions committed to providing debt funding for renewable energy projects of cumulative capacity of over 78.75 GW over the next five years. The amount sanctioned till date accounts for over 18% of the total pledged amount.
Source: The Hindu
This news is a positive development amidst the growing concerns over the lack of adequate financing for Indian solar projects. The solar PV industry is still thinking over the possible long-term effects of SunEdison’s financial troubles as it tries to offload about 1 GW of renewable capacity in the country. Meanwhile, no developer that bid for solar projects at a tariff lower than INR 5 per kWh has secured financing yet.
The Re-Invest 2015 event witnessed renewable energy commitments of more than 283 GW from the stakeholders along with a commitment of 62 GW of manufacturing capacity in the country. These commitments complement the government’s target of 175 GW of renewable capacity by 2022, which includes 100 GW of solar energy. As per the Ministry of New and Renewable Energy (MNRE)’s calculations, this would require an outlay of USD 160 billion. Banks and NBFCs are expected to have a major role to play in providing low cost and long term financing for projects of this nature.
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