Low-Cost Financing for Renewable Energy

Undertaken By: CRISIL Risk and Infrastructure Solutions Limited,    Recent Publication: 2013

Renewable energy is characterized by a relatively high initial investment, followed by low variable costs. Since a much greater share of the cost of energy is determined by the initial investment, higher financing costs have a disproportionate impact on renewable energy. This puts renewable energy at a relative disadvantage in India. Access to finance for renewable energy deployment is another challenge.This report highlights interventions in the finance sector that can accelerate the deployment of renewable energy with a greater quantum of capital and low-cost financing.