Wednesday, 29 July 2015

Japan set to finance solar power parks in India

The Japanese International Cooperation Agency has finalised plans to fund solar power parks in various states of India. According to the recent announcement, the Japanese International Cooperation Agency (JICA) plans to invest $500 million into the Indian solar parks. Other multilateral institutions like the World Bank, KfW, the European Investment Bank, and the Asian Development Bank also plan to provide low-cost debt financing for large-scale and rooftops solar power projects.

The Indian government plans to set up 25 of these solar parks across the various states. Out of total 100GW solar power installation by 2022, about 20GW is expected to come from solar parks. Over the years, the Indian solar power market has attracted significant foreign investment. The Indian government expects a total investment of $160 billion in the country’s renewable energy sector over the next 5 years. A large portion of this is expected to come from international private project developers and development banks, although Indian banks have started raising funds through green bonds as well.
The government may also consider launching tax-free green infrastructure bonds to attract domestic long-term investments. In February, Indian banks and foreign investors pledged to provide funding worth $57 billion for renewable energy capacity addition in the country. According to earlier reports, the Indian government was in talks with various international development banks to raise $3 billion for the National Solar Mission. The government has already signed agreements with the US Trade and Development Agency and the US Export-Import Bank for a total debt funding of $3 billion. Currently India’s solar installed capacity is approximately 4GW, meaning that it has to add 96 GW over the next 7 years.
  
http://cleantechnica.com/2015/07/29/japan-set-finance-solar-power-parks-india/

No comments: