IREDA and PNB to co-finance renewable energy projects
Upstox
2 min read • Updated: February 19, 2024, 3:12 PM
Summary
In a recent exchange filing, Indian Renewable Energy Development Agency (IREDA) and Punjab National Bank (PNB) have announced, about co-financing green energy projects through syndication. The memorandum of understanding (MoU) was signed between two parties on 19th February in New Delhi.
In a recent exchange filing, Indian Renewable Energy Development Agency (IREDA) and Punjab National Bank (PNB) have announced, about co-financing green energy projects through syndication. The memorandum of understanding (MoU) was signed between two parties on 19th February in New Delhi.
While signing the agreement, Pradip Kumar Das, CMD of IREDA, said that the partnership with PNB will play an important role in India’s renewable energy landscape. Thus MoU along with similar partnerships with PNB as well as other financial institutions, will aid IREDA to finance large-scale projects in renewable energy space, added Das.
India plans to generate 500 GW of non-fossil electricity by 2030, as committed at COP26. Globally, 100+ countries have pledged to triple their renewable energy capacity by 2030, which would require financing of $35 trillion investments into energy transition technologies.
India’s renewable energy landscape has been evolving rapidly with total installed capacity of 181 GW as of 2023 against 131 GW in 2019 – a 38% increase, or over 50 GW added in just 4 years. The ambitious target provides ample opportunities for green energy project financing in India.
The partnership provides a boost to IREDA’s existing loan book of ₹50,580 crore (Q3FY24), which is spread across different categories including solar, wind, hydropower and bio-energy.
Meanwhile, shares of IREDA, which have rallied 300% post IPO, are trading at ₹179 (+1.2%) higher today.