|
Financing remains the "biggest barrier" to India's clean energy transition, as inadequate investment in transmission and grid infrastructure continues to constrain the distribution of renewable power despite strong capacity expansion, said Australian economist Nicki Hutley, adding that there is "no shortage of capital."
In an exclusive interview with ANI, Hutley highlighted the need to strengthen India's electricity transmission network to ensure that growing renewable energy capacity translates into actual clean power supply. "There has been strong investment in renewables and other clean power, but not enough investment in the transmission and grid infrastructure needed to distribute that power," she said, stressing, "Large infrastructure companies need to be able to raise the required finance and overcome regulatory issues and land acquisition challenges. However, finance is probably the biggest barrier at this point." She noted that reducing regulatory barriers and the cost of capital would be critical to attracting greater investment into the country's clean energy infrastructure. "What we need to do is get the right people in the room that can make the decisions, that can make sure the regulatory environment is right, make sure that there are no, or as few barriers as possible to getting finance through the door into India," she said. Highlighting the availability of global investment funds, Hutley said the challenge lies in making clean energy projects financially attractive while managing risks for institutional investors. "There's certainly no shortage of capital," she said, pointing to large pension funds in countries such as Australia, the United Kingdom and Canada that could potentially support investment. However, she noted that such funds must consider expected returns and their ability to take on investment risks before committing capital. She noted that India's 2070 net-zero target is too distant to meet the goals of the Paris Agreement, even if the country's emissions peak by 2040, as currently expected. As per Hutley, any measures that can accelerate the transition, even marginally, without compromising India's economic growth would benefit both India and the rest of the world. "Things like electrifying transport, you know, that's lower cost, less pollution. So, that's good for India, but it's also really good for the world and for reaching our Paris goals on net zero," she said. (ANI)
|
