India’s total green investments surpassed $20 billion in 2018, beating thermal power investments in the country. A pro-renewable energy government at the center, the promise of power for all, and improving fundamentals of renewable energy have led to increased adoption of renewable energy sources of power across the country. India has so far achieved an installed renewable energy capacity of about 80 GW.

India is now running the most ambitious renewable energy program and aims to install 175 GW of renewable energy capacity by 2022, in order to fulfill its clean energy commitment. Not only that, but the country has also increased its overall installation target to 500 GW by 2030. Solar and wind energy have become prominent renewable energy sources in the overall portfolio of clean energy assets. The tariffs of solar and wind have also declined to Rs. 2.44 per unit and Rs. 2.64 per unit, respectively, making them more lucrative options. As a result, investments in the green energy sector have almost doubled in the last five years to $20 billion in 2018 and is further expected to increase to $80 billion by 2022, and to $250 billion during 2023-30. The financing options and terms for both utility-scale solar PV and wind projects have improved and the country’s utility-scale installed capacity stood at over 27 GW for solar and more than 36 GW for wind, by the end of May 2019.

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However, uncertainty over future financing costs for new plants as well as existing plants remains the biggest concern for power generation investments. There is still a problem of weak availability of long-term, fixed-rate debt for these projects.