India’s growing clean energy market requires specialized low-cost and long-term fund raising instruments for clean energy projects. However, there are a limited number of investment instruments that cater specifically to the clean energy sector. Debt products available in the market often do not carry the requisite longer term required for clean energy projects and have high interest rates. The higher risk perception leads investors and banks to seek guarantees on other assets owned by the borrower.
Well-designed financial instruments that reduce investor risks and improve their financial returns can play a central role in financing clean energy interventions. Shakti Sustainable Energy Foundation (Shakti) enables the design and development of new and innovative financial instruments that can help solve the challenges related to financing.