Funding
renewable projects with green bonds Indian government could
lower the cost of clean power by as much as 25 percent, according to a
study.
The government could sell bonds and lend the
proceeds to wind and solar farm developers. India could offer funds a
third cheaper than commercial bank loans and for double the tenor as the
government has the highest domestic credit rating, according to a
report by the Indian School of Business and Climate Policy Initiative, a
San Francisco-based research firm.
India, ranked Asia’s third-most attractive
country for renewable investments by Ernst & Young LLP this year,
plans to double its clean-energy capacity to 55 gigawatts by 2017. Lack
of affordable financing is an obstacle to reaching that target as the
central bank is raising interest rates to combat inflation and
commercial banks are wary about lending to new technologies.
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