The investment needed for India’s power sector to meet 2030 climate targets is approximately Rs. 22,621 billion (US$275 billion) over five years, with 70% allocated to renewable energy, mainly solar and wind. Annual investments of Rs. 3,700 billion (US$45 billion) are necessary, excluding funds for existing fossil fuel emissions and other sectors. A 3:1 debt-to-equity ratio is deemed viable, requiring Rs. 900 billion in equity and Rs. 2,800 billion in debt annually. Current debt capital from banks and NBFCs falls short of this need, necessitating policy reforms and innovative financing to bridge the gap and attract investment for the HELE transition.

Read the full article here