Modi's 175 GW green energy target for 2022 seems a distant dream; Can act as a barrier here

One of the important barriers to attract investment in the Indian green energy sector is the lack of appropriate financing structures.

New Delhi (Natural Energy News): According to a report of India Ratings, Modi government's initiative for renewable energy capacity of 175 GW by the year 2022 may fall short of the ambition, because it will require at least Rs 3.5 lakh crore. The report noted that one of the key barriers to attracting investment into the Indian green energy sector is the lack of appropriate financing structures, such as flexible repayments to navigate counterparty issues, comprehensive bill discounts, and return on investment Low-cost capital to optimize, has been added to the report. However, the use of novel financing measures with greater involvement of lenders and international RE players will play a key role in achieving green energy targets, it further added.

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The recent transition to the Indian renewable energy sector is believed to be a safer investment than before. In this context, the role of international RE players become more important, given their available costs of wealth advantage, access to a larger pool of funds, and a stronger balance sheet.

Last month, Prime Minister Narendra Modi said that there are huge renewable energy deployment plans for the next decade, which are likely to generate business prospects of orders of around $ 20 billion per year. Inviting global investors, developers and businesses to join India's renewable energy journey, PM Modi said that India has a very liberal foreign investment policy for renewal and foreign investors can either invest themselves Or they can collaborate with an Indian company. Following the success of PLI in electronics manufacturing, the government has decided to give similar incentives to high-efficiency solar modules.

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Meanwhile, India has set an ambitious target of the power capacity of 450GW from renewable energy by 2030, while the nation is already struggling on attaining a short-term target of 175GW of renewable energy by the year 2022. Out of the 2022 target, India has installed 88.7 MW capacity of green energy by August 2020.

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