IREDA and Ministry of New and Renewable Energy sign Memorandum of Understanding
On November 2, 2020, the Indian Renewable Energy Development Agency Limited and the Ministry of New and Renewable Energy signed a Memorandum of Understanding to set key targets for the year 2020-21.
According to the agreement, the Government of India has set a new revenue target of Rs 2,406 crore from the renewable energy industry. Till November 2, 2020, the IREDA has financed more than 2,700 renewable energy projects in India. The total loan disbursement to these projects were Rs 57,000 crores. By this, it has helped to add 17,259 MW of green power to the country.
It was set up in 1987 and is the leading financial institution dedicated to clean energy expansion in India. It is a non-banking financial institution.
Need of the moment
India is one of the top three leading global renewable energy growth markets in the world. India needs Rs 21,45,000 cores, that is, 330 billion USD to accomplish its Paris Agreement targets. India has set a target of achieving 175 GW of renewable energy by 2022.
Currently, India has scaled up its non-fuel based power generation to 134 GW. This is about 35% of the total power generated in the country.
The programme of Green Window is being implemented by IREDA. It was launched in January 2020. Under the Green Window, green banks and other public entities will be set up. These entities will work to bring clean energy financing into the mainstream. This is to increase the finances being provided to the green energy companies. Also, these institutes will adopt innovative new tools that are already successful in countries such as Malaysia, UK, Japan, Australia and US.
The Green Window will help serve the unserved segments of renewable energy.
Category: Economy & Banking Current Affairs