India's G20 presidency: Government plans low-cost energy financing

The government is developing an interest subvention scheme to aid the energy sector's adoption of clean energy and energy efficiency technologies, revealed Alok Kumar, the Power Secretary. Speaking at the third Energy Transition Working Group (ETWG) meeting during India's G20 Presidency, Kumar stated that India is formulating a scheme to support the deployment of expensive emerging energy efficiency technologies, offering interest subvention. It's under consideration. He emphasised the need for initial support such as viability gap funding (VGF) and priority lending to facilitate the widespread implementation of new technologies. Kumar further highlighted the government's commitment to achieving universal access to clean energy and addressing the challenges posed by deep decarbonisation and hard-to-abate sectors. The ETWG is diligently identifying priorities and estimating low-cost financing options to present to the G20 leadership. Kumar stressed the importance of affordable finance for promoting these technologies in the fight against climate change, emphasising the government's focus on selecting appropriate technologies and securing low-cost financing. He emphasised the necessity of substantial public finance to reduce the financing costs of clean energy projects in developing countries, where the majority of action is required. Kumar expressed the G20 community's responsibility to ensure that countries embarking on the path of development receive sufficient fund flows and affordable finance, ensuring equitable access to the benefits of progress. During the event, Bhupinder Singh Bhalla, Secretary of the Ministry of New and Renewable Energy, emphasised the need for robust policy commitments, citing policy and regulatory stability, transparency, and predictability as essential factors for attracting investments. Hosted by the Ministry of New and Renewable Energy (MNRE) and the International Renewable Energy Agency (IRENA) in collaboration with the Indian Renewable Energy Development Agency, the official side event titled Low-cost Finance for New & Emerging Energy Technologies took place in Mumbai on May 15, 2023, as part of the G20 ETWG meeting under India's G20 Presidency. The event brought together policymakers, financial institutions, and technology developers to discuss cost-effective financing estimates for energy transition based on emerging critical technologies such as hydrogen, offshore wind, energy storage, and carbon capture utilisation and storage. At the event, the report Low-Cost Finance for Energy Transition, prepared by IRENA in partnership with MNRE under the G20's India Presidency, was unveiled. Also Read HP govt focuses on business-friendly environment and investmentWill Government Spending Accelerate Construction?