One of India’s leading private sector banks has pledged to mobilize a large volume of funds to finance large-scale solar power projects in India by 2030. The announcement was made at the International Solar Alliance conference recently held in Abu Dhabi.
Yes Bank has pledged to mobilize $5 billion to fund solar power projects in India by 2030. The plans include a 2023 milestone to mobilize $1 billion. The bank has signed agreements with five different project developers to provide $1 billion in funding by 2023. These include Hero Future Energy (up to 1.5 GW capacity), Greenko Group (up to 10 GW capacity), Amplus Solar (up to 1 GW capacity), Jakson Group (up to 1 GW capacity), and Tata Power Delhi Distribution Limited (up to 10 MW capacity).
The bank notes that this commitment will act as a ‘precursor’ to the impending RE-INVEST 2018 investors summit to be organized by the Government of India in April 2018. During RE-INVEST 2015, the bank had pledged to fund 5 gigawatts worth of solar power capacity. No update and progress has so far been reported with respect to that pledge.
Yes Bank remains one of the most active banks in India in terms of green energy funding. It was the first entity (public or private) to have issued a green bond in India. Since February 2015, the bank has raised nearly $260 million by issuing three rupee-denominated green bonds.
Recently, Yes Bank signed an agreement with the European Investment Bank to co-finance renewable energy projects in India. The two banks will provide $400 million to solar and wind energy projects spread across four states. The finance would be sufficient to support the development of approximately 500-600 megawatts of solar and wind energy capacity.
This also marks the first funding commitment for the International Solar Alliance. The agency, founded by France and India, plans to mobilize $1 trillion in funding to set up 1,000 gigawatts of solar power capacity across the world through innovative solutions, like offering $1 billion bank guarantees to reduce investment cost.