Foreign investors are pairing up with local independent power producers to tap into India’s booming solar market despite problems with timely payments, land acquisition, and grid access, analysts say.
Sovereign wealth funds from Singapore and Abu Dhabi, along with banks like Goldman Sachs, funds like Copenhagen Infrastructure Partners (CIP), and utilities such as Japan’s JERA currently hold sizeable stakes in solar projects led by Indian developers, according to a 31 July IHS Markit analysis of India’s solar market.
The same analysis found major banks like JP Morgan and Standard Chartered are prepared to underwrite many of the green bonds that Indian power producers are floating to add to their renewables portfolios.
India is eager to draw in foreign investment as it knows it cannot reach its target of 450 GW of installed renewable capacity through its own capital as the country seeks to decarbonize its economy.
[ Amena Saiyid ]