IREDA to Raise ₹50 Billion for Green Energy Financing, Accelerating India’s Renewable Growth

In a significant boost to India’s renewable energy sector, the Indian Renewable Energy Development Agency Limited (IREDA) has approved a plan to raise ₹50 billion through Qualified Institutions Placement (QIP) of equity shares. This strategic move aims to strengthen financial resources, enabling IREDA to expand green energy financing and support large-scale renewable projects nationwide.

A Key Step Towards Sustainable Growth

With the global shift towards cleaner energy sources, India has made significant strides in its renewable energy transition. IR EDA’s latest fundraising initiative is expected to:

• Enhance funding availability for solar, wind, hydro, and bio-energy projects.
• Support emerging green technologies such as electric mobility, energy storage, and energy efficiency solutions.
• Ensure uninterrupted financial backing for government-led clean energy programs.

After securing approvals from shareholders and regulatory bodies, the QIP issuance will be carried out in multiple tranches. Notably, the Government of India’s stake in IREDA will remain intact, with only a 7% dilution in post-issue equity.

Strengthening India’s Green Financing Ecosystem

This fundraising move aligns with India’s ambitious goal of achieving 500 GW renewable energy capacity by 2030. As one of the leading financial institutions dedicated to sustainable energy, IREDA is crucial in bridging investment gaps and ensuring the timely execution of clean energy projects.

The additional capital will allow IREDA to:

• Extend long-term financial support to developers and businesses venturing into green energy.
• Encourage private sector participation in renewable projects by providing financial confidence.
• Promote decentralized renewable solutions, making clean energy more accessible at the grassroots level.

Expanding Retail Operations for Broader Impact

Beyond institutional funding, IREDA has been actively working towards expanding its retail financing capabilities. In October 2024, the agency received in-principle approval from the Department of Investment and Public Asset Management (DIPAM) to set up a wholly-owned retail subsidiary.

This subsidiary will manage consumer-focused initiatives, including:

• PM-Surya Ghar: Muft Bijli Yojana – Enabling homeowners to install solar panels for free electricity.
• PM-KUSUM Scheme – Supporting farmers in adopting solar-powered irrigation systems.
• B2C Renewable Energy Financing – Facilitating loans for solar rooftops, energy-efficient appliances, and sustainable home solutions.
• Electric Vehicles & Energy Storage – Encouraging the adoption of EVs and battery storage systems to strengthen India’s green mobility.

By expanding its B2C reach, IREDA is financing large-scale projects and empowering individuals and small businesses to join the green energy movement.

India’s Renewable Energy Investment Outlook

India has emerged as a global leader in renewable energy, attracting record investments in recent years. According to industry estimates:

• $20 billion was invested in India’s clean energy sector in 2023, marking a 40% year-on-year increase.
• Solar energy capacity has grown nearly fivefold in the last decade, reaching over 80 GW.
• Wind energy projects continue to expand, with new hybrid solutions integrating solar and battery storage.

With strong policy support and financial backing from institutions like IREDA, the country is well-positioned to accelerate its green transition and reduce dependence on fossil fuels.

The Future of Green Energy Financing in India

IREDA’s move to raise ₹50 billion through QIP is a significant step towards ensuring a robust financial ecosystem for India’s clean energy transformation. This will catalyze investments in renewables, create thousands of green jobs, and drive economic growth.

With a clear commitment to sustainability, innovation, and accessibility, IREDA continues to take charge of making India’s renewable energy future brighter than ever.

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