ABSTRACT
Indian Parliament in August 2022 has approved the updated Nationally Determined Contribution (NDC) targets. The targets state to reduce the emission intensity of the Gross Domestic Product (GDP) by 45% from the base 2005 levels and increase the share of non-fossil installed fuel capacity to 50% of the mix by 2030. The majority of this intensity reduction comes from greening the electricity systems, which in 2018 contributed to over 40% of the country's annual emissions.
A look at the balance sheets of the major renewable energy players reveals the following – who is financing what? And, how are the funds flowing – in which form? Of the four major financing engines, only two are firing: domestic banks and international green bonds. While the other two, i.e., the domestic bond market and foreign institutional funding, are out of reach for most of the projects in the country. On equity, most of the major players have substantial ownership from sovereign wealth and pension funds. The chapter explores available solutions and comments on these from the standpoint of their usefulness in the Indian context.
