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Investments in Renewable are Overwhelmingly Driven: What About Credibility of the Projects?

News:

International Finance Corporation (IFC) has big plans to invest in India's renewable energy space as the sector is evolving with competitive commercial bidding unlike the subsidy-driven growth in the West, a top executive at the World Bank's investment arm said. IFC joins other global players such as Goldman Sachs, SoftBank and SunEdison in plans to invest in the country, which is aiming to make a quantum leap in the production of solar and wind energy.

Source:- ET

SNP Insight:

Investments are pouring in for the renewable sector which may help the govt. to achieve the target of installing 175 GW of renewable capacity by 2022. The installation will also help in improving country's carbon emission profile. But the stressed financial conditions of the distribution utilities might affect the power evacuation from these projects, which might create stranded capacities in future. Therefore ensuring credibility of the renewable power projects is the need of the hour.

Source:- SNP Infra Research