The Indian Government will soon be launching equity fund for pushing the renewable energy investment. As per media reports, the Indian Government is now planning to launch the equity fund, which is worth $2 billion for boosting the renewable energy development. The initial funding of one billion dollars will be available from the next financial year, April 2017.
CEEF, which is also known as Clean Energy Equity Fund, will see the contribution from the centre and also some of the state-owned firms. Close to $600 million will be given from National Investment and Infrastructure Fund, under the Ministry of Finance, and the rest contributed by those state-owned firms – NTPC Ltd, IREDA – that is the Rural Electrification Corporation and Indian Renewable Energy Development Agency.
These firms and many others have already increased many million dollars via green bond issues that might be directed to CEEF. The government is actually expected to be tapping into foreign investors for further increase in the size of the fund. The pension as well as the insurance funds will be focused for this fund expansion.
The Indian government is now aiming to raise the funds from a lot many sources. It has tapped into the green bonds market, the international development banks as well as national banks and also financial institutions. India has planned a target to have the installed renewable energy capacity of 175 GW, which includes the 100GW solar power and then 60-GW wind energy capacity.
Renewable energy in the country comes under the purview of MNRE. The newer renewable electricity sources are now targeted to be growing majorly by the end of 2022, which includes a more than doubling of the country’s big wind power capacity and close to fifteen-fold increase in solar power from April 2016 levels. These ambitious targets will be placing India amongst the top leaders in the world when it comes to renewable energy use and also place India at the middle of the International Solar Alliance project, which promotes the growth as well as the development of solar power internationally to over 100 plus countries.
India was actually the first nation in the world to be setting up the ministry of non-conventional energy resources in early 80s. As of April 2016, the country’s cumulative grid interactive or grid tied renewable energy capacity reached about 43 GW, going beyond the installed capacity of big scale hydroelectric power in the country for the first time in the history of India. 64% of the renewable power actually came from the wind, and the solar contributed close to 16%. Big hydro installed capacity was around 43 GW as of April 2016; it is administered separately by the Ministry of Power and it is excluded from the MNRE targets.
From the year 2015, MNRE started laying down actionable plans for the renewable source of energy sector under the ambit to make a big jump, building on the strong foundations that are already set up in the country. The MNRE renewable electricity targets have been increased to grow from under the 43-GW in April 2016 to 175-GW by the end of the year 2022, which includes 100-GW from solar power, 60-GW from the wind power, 10-GW from bio-power and 5-GW from small hydro power. These super targets will see the nation quickly becoming one of the biggest green energy producers in the globe by surpassing a lot of developed nations.
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