India to create US$2 billion renewables equity fund – reports

Facebook
Twitter
LinkedIn
Reddit
Email
There may be a shortage of equity in India next year. Flickr: Gopal Vijayaraghavan

The Indian government and three of its state-run companies are setting up a US$2 billion equity fund to help renewable energy companies meet the country's ambitious targets, according Reuters citing two government sources.

From next financial year, an initial fund of more than US$1 billion will be available to both private and public companies. Reuter’s sources said that India is particularly keen to attract pension and insurance funds from Canada and Europe, as reported in PV Tech Power last year. Indeed, such funds tend to suit the renewable energy sector where projects can have lengthy contract lifetimes of up to 25 years,

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The National Investment and Infrastructure Fund, part of the finance ministry, will give US$600 million for the first provision of the equity fund. The rest will come from India’s largest utility NTPC, the Indian Renewable Energy Development Agency (IREDA) and Rural Electrification Corporation.

One of the sources told Reuters: “As we expand our clean energy capacity, there may be a shortage of equity next year. Private equity is seen as risky in India, but if the government itself creates a fund, that gives a lot of confidence.”

A Bloomberg New Energy Finance (BNEF) report yesterday described solar as the “King of Indian Renewables”, but it said that another US$100 billion needs to be leveraged to meet prime minister Narendra Modi’s 175GW renewables target by 2022.

The report stated: “Indian project developers are trying to meet this capital requirement through various means, including increasing borrowings from multilateral organisations and issuing green/masala bonds. While the Securities and Exchange Board of India is still finalising the modalities for the formation of quoted infrastructure investment trusts (similar to US yieldcos), Indian renewable energy developers are already planning to list assets adding up to US$1.3 billion under this mechanism.”

Read Next

June 27, 2025
Indian solar manufacturer Premier Energies has commissioned its 1.2GW TOPCon solar cell manufacturing line at Fab City, Hyderabad, Telangana.
June 26, 2025
ACEN has partnered with UPC Renewables to build two renewable projects in Rajasthan and Karnataka, India. 
June 25, 2025
Emmvee has secured INR15 billion (US$174 million) order for TOPCon bifacial solar modules from KPI Green Energy. 
June 25, 2025
State-owned firm Solar Energy Corporation of India (SECI) has launched a solar-plus-storage tender seeking 1.2GW of solar PV.
June 24, 2025
Waaree Renewable Technologies has signed an MoU with Viet Khanh to establish a 100MWp solar project in the region. 
June 24, 2025
BluPine Energy has raised INR2,416 million (US$290 million) debt sanctions for its 150MW power project in Aland, Karnataka.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece