Push needed for renewable energy

Source: The Dollar Business Bureau

The international financial bodies, including the World Bank, should give a clear roadmap and enhance their monetary commitment to at least 15 percent from the current 5 percent for development of renewable energy sector, opined a senior official from the Ministry of New & Renewable Energy.

“The global bodies, like World Bank, must provide a clear roadmap and tell how much funds they will provide for renewable energy sector during the next five years as they are the chief controller of finances globally. Today, we require at least 15 percent for the sector but World Bank gives only 5 percent for India’s renewable energy sector,” said Upendra Tripathy, Secretary, Ministry of New & Renewable Energy (MNRE) while addressing the ASSOCHAM Solar India Summit 2016.

He said that funds have been the biggest hurdle in the development of renewable energy sector in India, due to the high capital costs.

In order to reduce the cost of capital, the Government is finding new ways and roping in multilateral and bilateral organisations and banks, said the secretary.

“We are thinking to develop an equity fund of $1,000 million to aid new companies to use solar energy and to make it a movement so that we can transition our energy generation from megawatt to gigawatt,” he said.

The secretary informed that the Ministry had been in negotiations with several national banks including the Canara Bank, State Bank of India, Punjab National Bank, and others, to take loans for the funding purpose.