India’s renewable energy deployment of over 70 GW has already witnessed an estimated investment of US $ 75 billion. Of this, an investment of US$ 42 billion was made in last 4 years. The target of 175 GW of renewable by 2022 has provided an investment opportunity for about US $ 100 billion.
Multilateral Development Banks (MDBs) and other Financial Institutions have started supporting renewable energy projects through low-cost finance. Indian Renewable Energy Development Agency (IREDA), Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have been receiving funds from MDBs for supporting renewable energy projects in India. India has already started tapping unconventional funds, such as pension funds, masala bonds etc. The money raised from such sources will go towards financing renewable energy projects nationwide.
India seeks low-cost long tenor funds for renewable energy development in the country. Increased focus on renewable energy and on long-term plans have resulted in making renewable energy sector a very attractive investment destination. Targets coupled with ease-to-do-business offer businesses excellent opportunity for setting and scaling up industries, leapfrogging technologies, and creating volumes. Emphasis is being laid on a simple and predictable policy framework created in the form of tariff policy and standardization of solar PPAs, etc., to reduce the investment risks.