The need to create an environment conducive to renewable energy sources

BY
Real Estate Plus

The green energy sector is undergoing a paradigm shift, driven by strategic government initiatives and innovative financial instruments. Production Linked Incentive (PLI) programmes are aimed at increasing domestic production and creating a competitive advantage for Indian companies in the coming years. This initiative alone could create a lot of jobs and drive technological innovation.

We hope that the government will revise the GST rates on renewable energy components, bringing it down to 5% (from the current 18%), thereby significantly reducing the cost structure of green energy projects. This will also make renewable energy investments more affordable and attractive, promoting faster adoption across the country.

Higher capital spending, as evidenced by the government’s plan to invest more than $360 billion in renewable energy infrastructure by 2030, underscores the commitment to expanding the country’s renewable energy mix and increasing grid capacity. In addition, lower interest rates have made it easier to access more affordable financing options, helping to lower the cost of capital and making large-scale renewable energy projects more viable.

Green bonds have become a powerful tool, with India issuing over $21 billion of green bonds since February 2023. These bonds are key to financing environmentally sustainable projects, aligning investor interests with the global drive towards a low-carbon economy.

Taken together, these efforts will create a robust and enabling environment for the renewable energy sector, positioning India as a global leader in sustainable energy solutions and bringing us closer to our goal of a resilient, green future.