In FY 2023-2024, renewable energy accounted for a significant portion of India’s newly added power generation capacity, with solar energy dominating the renewable energy addition. The share of coal and lignite in India’s total installed capacity fell below 50% for the first time. The report also highlights the rise in peak power demand and the increase in foreign investment in non-conventional energy.
Banks in India have requested incentives from the Reserve Bank of India (RBI) and the Centre for sustainability-linked loans. They are seeking relaxed norms on risk-weighted assets (RWA) and cash reserve ratio (CRR) for such loans. Sustainability-linked loans have interest rates connected to a company’s sustainability performance. Discussions are ongoing on green financing models and their adoption by banks.
