That price tag was put on the country’s clean energy programme by Vinjay Rustagi, managing director of Bridge to India, a renewables-focussed consulting and research company.
In an article in the latest issue of Power Engineering International magazine, he says that the sum “is spread between equity and debt in the ratio of 25 and 75 per cent. Most of that investment is geared towards power generation, which is being dominated by the private sector. And of course there needs to be a lot of ancillary investment in transmission and distribution and upgrading of the grid, which is currently led by the public sector.”
Rustagi says that “when you talk to major international investors about the Indian renewables sector, the fundamentals are compelling”, adding that the Indian renewables market “provides visibility, growth and strong government support, which are huge positives for financiers in the sector”.
The scale and pace of India’s renewables rollout is vast and fast. “The key thing is, historically, the sector has been about 5 GW a year – going forward we want to scale that up to 10-15 GW a year,” explains Rustagi. “Is India and investors ready to make this sustainable on a long-term basis? Is there enough appetite in the financing market to support this growth?”
To read more about financing India’s renewable energy dream – and to discover who are the major players in the sector – read the full article here.