Indian renewable energy (RE) developers have issued green bonds worth Rs.26,300 crore (USD 3.6 billion) in the first half of 2021 alone, beating even previous one year records, says the CEEW-CEF study report.
The study is titled Financing India’s Energy Transition Through International Bond Market.
The study found that Indian developers have raised more than Rs 78,200 crore since 2014 through green bonds issued in international markets.
Greenko and ReNew Power accounts for almost 70% of all issuances value.
CEEW-CEF says, the findings highlight the potential of green bond markets to support India’s ambitious push to achieve energy-independence by 2047, a target recently announced by Prime Minister Narendra Modi.
Proceeds from the Rs 78,200 crore of capital raised have directly refinanced debt for over 10 GW worth of Indian RE projects.
Wind and solar power account for 42 per cent each of this refinanced portfolio and represent a combined 8.4 GW. Hydropower makes up the balance.
This implies that 8.4 per cent per cent of India’s non-hydro RE capacity, totalling 100 GW, has been debt-financed with overseas capital.
Gagan Sidhu, Director, CEEW-CEF, and co-author of the study, said, “India’s non-hydro RE portfolio recently crossed the 100 GW mark, but we need to significantly ramp up capital mobilisation to get to 450 GW by 2030. Additional routes of capital such as green bonds will be essential for this transition, which requires investments of more than INR 15 lakh crore in power generation capacity alone. For perspective, the outstanding exposure of Indian institutional lenders to the entire power sector stood at approximately INR 13 lakh crore as of March 2020.”
The study is supported by Bloomberg Philanthropies.