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India to set up $350 mn fund for solar projects to meet renewable energy target
(The Hindu)
Context
India will set up a $350 million fund to finance solar projects, Power Minister R.K. Singh said, as the country steps up efforts to achieve its ambitious target of adding 175 gigawatts (GW) in renewable energy by 2022
Backdrop
An event organised by the International Solar Alliance (ISA) in Abu Dhabi
Minister confident of achieving 175 GW of installed capacity well before 2020
India will need at least $125 billion to fund a plan to increase the share of renewable power supply in the country’s grid by 2022, underlining the immense financing challenge ahead.
Ambitious target
- India expects renewable energy to make up 40% of installed power capacity by 2030, compared with 18.2% at the end of 2017.
- Installed renewable power capacity is currently about 60 GW, and India plans to complete the bidding process by the end of 2019/20 to add a further 115 GW of installed renewable energy capacity by 2022.
Contributions
Yes Bank: India’s Yes Bank Ltd. has committed to financing solar projects worth $5 billion
NTPC: State-run NTPC Ltd. will contribute $1 million to an ISA fund
Foreign capital
- India wants foreign capital to account for a bulk of its investments to meet its renewable energy target.
- But industry experts said most of the financing for the country’s renewables drive so far has come from domestic banks and such banks have to account for the lion’s share of new renewable investments in the future.
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