Instruments and Markets

India requires massive investments in clean energy projects to reach the ambitious Nationally Determined Contribution (NDC) targets it has set for itself. Though investment in clean energy projects is growing, the inflow of funds for clean energy enterprises stands at approximately ~$14 bn per (3 year average) year as opposed to the required ~$35 billion per year for the next 10 years.

Managing clean energy finance flows in the country requires a robust financial infrastructure that can track and measure investments. This can help the country optimise its funding allocations by allowing policy stakeholders to analyse data and develop clear action plans to support innovation and leverage-in private investment through de-risking instruments.

India has a diverse mix of financial instruments that are used to deploy financial capital for green investments. However, maintaining and developing the growth of this space requires context-driven financing instruments to attract private investment. Low-cost public funds will be useful in scaling up pioneering business models and technologies to the point where they independently invite mainstream investors.

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 enables the design and development of new and innovative financial instruments that can help solve the challenges related to financing.