Green Energy Finance in India: Challenges and Solutions
Sarangi, Gopal Krishna | August 2018
Abstract
India’s energy sector is experiencing a transition with increasing penetration of renewable energy in the energy mix. One of the major impediments in the process of such a transition is to secure the necessary finance to achieve the transformative goal of producing 175 gigawatts of renewables by 2022. The problem gets compounded with limited budgetary resources available, conjugated with difficulties associated with mobilizing private capital for the sector. With this backdrop, the present chapter offers a granular understanding of the associated challenges of mobilizing such finances, drawing from the Indian perspective. It contributes to the present understanding by identifying the emerging pathways of financing renewables and the inherent challenges. The findings are quite revealing. Financing of renewable energy in India continues to face multiple conundrums, largely entrenched with the nature of current financial market in India in general, such as short tenure of loans, high capital costs, and lack of adequate debt financing etc., as well as with the sector specific issues of the renewable energy sector. The success of introducing innovative financing mechanisms and instruments requires necessary conditions to prevail.
Citation
Sarangi, Gopal Krishna. 2018. Green Energy Finance in India: Challenges and Solutions. © Asian Development Bank Institute. http://hdl.handle.net/11540/8642.Keywords
Alternative energy
Alternative energy development
Photovoltaic Energy
Geothermal Energy
Urban Development Finance
Trade Finance
Small Business Finance
Rural Finance
Roundtable on International Trade and Finance
Regional Development Finance
Public Service Finance
Public Finance
Project Finance
Private Finance
Nonbank Financing
Non-Bank Financial Institutions
Municipal Finance
Local Government Finance
Local Currency Financing
Limited Resource Financing
International Financial Institutions
Infrastructure Financing
Industrial Finance
Government Financial Institutions
Government Finance
Financing of Infrastructure
Financial Sector Development
Financial Regulation
Alternative energy program
Alternative energy technology
Energy Demand
Energy planning
Energy Resources
Energy Resources Development
Primary Energy Production
Primary Energy Supply
Taxation
Public Accounting
National Budget
Municipal Bonds
Local Government
Local Taxes
International Monetary Relations
International Financial Market
International Banking
Central Banks
Business Financing
Capital Resources
Budgetary Policy
Capital Needs
Corporate Divestiture
Capital Instruments
Pension Funds
Insurance Companies
Banks
Portfolio Management
Fiscal Administration
Economics of Education
Development Banks
Green technology
Energy conversion
Electric power consumption
Cost effectiveness
Inventions
Sun
Solar heating
Solar energy
Renewable energy source
Power resource
Natural resource
Energy harvesting
Energy development
Energy facility
Power supply
Solar activity
Solar constant
Earth
Weather
Renewable energy resource
Energy security
Energy tax credit
Energy assistance
Solar energy policy
Conservation of natural resources
Use tax
Taxing power
State of taxation
Tax-sales
Tax revenue estimating
Tax planning
Spendings tax
Special assessments
Tax administration and procedure
Sales tax
Real property and taxation
Progressive taxation
Effect of taxation on land use
Effect of taxation on labor supply
Intergovernmental tax relations
Inheritance and transfer tax
Energy tax
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