Complete decarbonization of the electricity demand of Indian Railways (IR) – transitioning from the current, largely fossil-fuel based energy mix to clean energy like solar and wind power – is likely to have multiple benefits.

IR is currently the world’s second largest railway network and is the single largest consumer of electricity in India, consuming about 18 TWh per year, or roughly 2% of the country’s total power generation. IR also consumes 2.6 billion liters of diesel annually, or 3.2% of the total diesel consumption of the transport sector in India.

India has ambitious renewable energy targets of 175GW by 2022. In order to meet this target, the renewable energy sector in India will require $189 billion in additional investment, including $57 billion in equity, and $132 billion in debt.

In order to expand the rooftop solar industry in India, there is a need to develop policy solutions, business models, and financing instruments which can address these barriers. One promising solution to manage these barriers is the third party financing model.

Indian Railways (IR) is currently the world’s second largest railway network and is the single largest consumer of electricity in India, consuming about 18 TWh per year, or roughly 2% of the country’s total power generation.

As India prepares to meet its increasing energy demands, which will likely double by 2030, the government has set a path towards ambitious renewable energy targets of 175GW by 2022. Raising enough finance will be central to achieving these targets.

India's solar dreams have a new backer in American energy experts. On the sidelines of the climate talks in Paris, a group of solar experts from Stanford University released a report calling India's solar goals a "global priority".

A major barrier to deploying renewable energy in India is a shortage of debt at attractive terms. Domestic debt in India has high cost, short tenor, and variable interest rates, adding 30% to the cost of renewable energy. Currently foreign debt is as expensive as domestic debt because it requires market-based foreign exchange hedging solutions.

India has ambitious targets for renewable energy growth. As part of its Union Budget 2015-2016, India aims to install 60 GW of wind power capacity and 100 GW of solar power capacity by 2022, which is more than six times the current installed capacities of approximately 22GW and 3GW, respectively.

India has ambitious targets for renewable energy growth. As part of its Union Budget 2015-2016, India aims to install 60 GW of wind power capacity and 100 GW of solar power capacity by 2022, which is more than six times the current installed capacities of approximately 22GW and 3GW, respectively.

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