The UK government plans to invest $1.2 billion through public and private investments in India’s renewable energy sector to help India meet its 450 GW renewable energy target by 2030. India’s Finance Minister and the UK’s Chancellor of the Exchequer announced the partnership at the 11th Economic and Financial Dialogue between the two countries. According to the official statement of the British High Commission, of the $1.2 billion proposed investments, $1 billion will come from CDC, the UK’s development finance institution. The funds will be invested during 2022-2026.
Further, $200 million has been committed through private and multilateral funds for the joint Green Growth Equity Fund (GGEF) that invests in green energy financing in India. Moreover, joint UK and Indian investments will be put in venture capitals to support start ups. The Climate Finance Leader Initiative (CFLI) India Partnership was also launched in a bid to mobilise private financing into sustainable infrastructure in India, including solar, wind, and other green technologies. CFLI will be co-chaired by Shemara Wikramanayake, chief executive of Macquarie Group, and Natarajan Chandrasekaran, chairman of Tata Group.
REGlobal’s Views: India’s massive 450 GW renewable energy target by 2030 will need significant investment. Financing has often been cited as a key concern in meeting these targets. Thus, these funds can help the Indian developers access affordable international finance and enable them to set up projects. Further, interested UK firms can explore new opportunities in the Indian renewable energy space and support start ups and new ventures.
