December
Renewable Energy

IREDA sanctions over Rs 3,000 crore for green energy projects in Odisha

[Source - Business Standard , 23 December 2024]
Author
Arjun Dutt

Notable because

Most investments in clean energy are in the form of physical assets, which are majority funded by debt. In the case of renewable energy (RE), debt accounts for roughly 75% of project costs. Domestic banks and non-bank financial companies have fund most of the debt financing requirements of RE projects in India. However, these lenders would struggle to meet the debt financing requirements of RE capacity needed to meet India’s 2030 clean power targets.

What to look out for in the months ahead

Will policymakers facilitate the opening up of new channels of debt finance to complement or recycle primary debt from domestic lenders? 

Could a subsidised credit enhancement facility  help generate evidence of credit performance that supports RE issuances on the domestic bond market at scale?