Friday, 25 April 2014

Green Bonds: A key to lower Indian renewable enrgy cost by 25%

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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