Strategic Recommendations for Financing Green and Sustainable Energy Projects

Abstract

The main hindrances for the large-scale development of the Renewable Energy (RE) projects are the bankability and lack of indetermination to match investment and investor with a proper financial instrument or robust policy measures. To give an example of a bankable project a research-based case study on greening Indian Railway systems is presented in this paper. A quantitative measure of the tentative amount of fossil fuel savings by commissioning solar panel on the rooftop of rail coaches is depicted here through the case study with real-world data to provide an insight regarding the kind of RE projects that might be very attractive to the financial institutions as well as to the promoters owing to the lucrative internal rate of return (RoI). It is identified that most of the Asian countries are crawling to find the financial gap between access to finance and cost of capital in the RE sector. In this context, the limitations of all existing RE project financing mechanisms of India are thoroughly analyzed and finally three policy measures are recommended towards developing a robust financial mechanism to meet investment and investor.