Question
According to the International Renewable Energy Agency
(IRENA) report, which agency is considered the preferred agency for green project financing in India?Solution
A recent report titled ‘Low-cost finance for energy transition’ produced by the International Renewable Energy Agency (IRENA), has praised India’s achievement in rolling out renewable energy capacity, calling it “unprecedented”. The country’s renewable energy sector has seen unprecedented growth driven by national targets of 175 GW of renewable energy capacity by 2022 and 500 GW of non-fossil fuel capacity by 2030 noting that India ranked third on the Renewable Energy Attractive Index in 2021. The country’s capacities are some of the fastest growing among the top five countries promoting and advancing renewable energy. The comprehensive policy framework designed by the Indian government has ensured that the national targets are well supported. The report makes a special mention of India setting up the government-owned, non-banking finance company, Indian Renewable Energy Development Agency (IREDA), in 1987. IREDA has been serving India’s renewable energy sector and the government’s ambitions for the past 35 years. According to the IRENA report, IREDA has also become “the preferred agency through which DFIs across the world contribute to green project financing in India.”
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