A sustainable reduction in the cost of capital for renewable energy projects will take a multi-pronged approach, which could herald a range of broader changes to institutional investor/asset manager relations across a range of timescales. The most effective catalyst will depend on the market.
In recent years, the Indian Renewable Energy (RE) sector has witnessed high grow rate – driven by the Government of India (GOI) commitment to increase RE capacity to 175 GW in 2022 and the assurance to increase the proportion of non-fossil fuel in India’s fuel mix to 40 percent by 2030 (as part of India’s NDCs target).
Power grids operators around the world have been experiencing challenges in operating the grid with increasing penetration of Variable Generation (VG) sources like Solar PV and Wind. Variability in one form of generation must always be compensated with other forms of generation at all times to ensure grid stability.