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JOURNALKEBERLANJUTANJOURNALKEBERLANJUTAN

Journal International Journal of Environmental, Sustainability, and Social ScienceInternational Journal of Environmental, Sustainability, and Social Science Abstract

Indias goals of attaining 500 GW of renewable energy capacity by 2030, as part of its Panchamrit climate commitments, require a significant financial transformation. Addressing the projected annual funding deficit of INR 11 lakh crores (USD 170 billion) is essential for the expansion of renewable initiatives, including solar, wind, and hydro energy projects. This study examines the present state of green finance in India, highlighting the significance of instruments such as sovereign green bonds, blended finance, green banks, and crowdfunding in facilitating the growth of renewable energy. The research employs exploratory analysis of governmental data, policy documents, and multilateral sources to identify critical structural impediments, including inadequate enforcement of Renewable Purchase Obligations (RPOs), underdeveloped debt markets, minimal foreign direct investment (2.05%), and disjointed regulatory frameworks. Research indicates that while entities like IREDA and programs such as viability gap funding (VGF) have stimulated solar expansion, overarching market inefficiencies remain. Merely 34% of public sector banks actively endorse renewable energy, whereas the involvement of foreign banks is minimal. The paper additionally delineates investor engagement and quantifies sector-specific fund distributions, highlighting that solar energy commands the largest proportion (34.58%), followed by hydro and wind energy. The paper promotes enhanced adherence to RPOs, the development of innovative financing models, and the implementation of strategic de-risking mechanisms to bolster investor confidence. These initiatives are crucial for expediting Indias energy transition, fulfilling Sustainable Development Goal 7, and significantly aiding global climate objectives.

Conclusion

Indias renewable energy sector has seen expansion, with solar and wind accounting for 43.5% of total installed capacity as of 2024, but actual energy consumption from renewables remains low at 3%.Despite progress, challenges persist, including inconsistent adherence to Renewable Purchase Obligations (RPOs) and a reliance on public sector funding, with PSUs contributing 34.To meet its 2030 targets, India must strengthen public-private cooperation, improve policy frameworks, and diversify financing sources through measures like credit guarantees and increased awareness of green banking.

Future Research

Berdasarkan hasil penelitian, terdapat beberapa arah penelitian lanjutan yang menarik untuk dieksplorasi. Pertama, perlu dilakukan studi mendalam mengenai efektivitas berbagai instrumen keuangan hijau, seperti obligasi hijau dan blended finance, dalam menarik investasi swasta ke sektor energi terbarukan di India. Penelitian ini dapat mengidentifikasi hambatan dan peluang untuk meningkatkan daya tarik instrumen-instrumen tersebut bagi investor. Kedua, penting untuk menganalisis dampak dari kebijakan pemerintah, seperti Renewable Purchase Obligations (RPO), terhadap pengembangan energi terbarukan. Penelitian ini dapat mengevaluasi efektivitas RPO dalam mendorong permintaan energi terbarukan dan mengidentifikasi cara untuk meningkatkan kepatuhan dan penegakan kebijakan tersebut. Ketiga, penelitian lebih lanjut diperlukan untuk memahami peran bank hijau, seperti IREDA, dalam memobilisasi investasi untuk energi terbarukan. Studi ini dapat mengeksplorasi model bisnis dan strategi pendanaan yang paling efektif untuk bank hijau, serta mengidentifikasi peluang untuk memperluas jangkauan dan dampak mereka. Secara keseluruhan, penelitian-penelitian ini akan memberikan wawasan berharga bagi pembuat kebijakan, investor, dan pemangku kepentingan lainnya yang terlibat dalam transisi energi di India, sehingga membantu mempercepat adopsi energi terbarukan dan mencapai tujuan pembangunan berkelanjutan.

References

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