ABSTRACT
The Government of India has set the target to achieve 175 GW of installed renewable energy by 2022 and, under the Paris Climate Agreement, has committed to have 40% electricity generation from non-fossil fuel resources by 2030. The cost of funding is critical because a far greater part of electricity from renewable energy is cost-based capital. The promotion of fixed income securities to finance clean energy investments at a lower cost of capital is an attractive investment vehicle for large institutional investors. By increasing renewable capacity in its supply mix, India can meet its energy needs to support economic development and growth in a manner that addresses its environmental and climate objectives. A long-term financial market supported by institutional investors could be ideal for renewables, enabling lower cost of debt funding. Since 2015, developing economies have invested more in the renewable sector than their developed counterparts.
