India’s ambitions of increasing its non-fossil fuel based energy capacity to 500 GW by 2030 are formidable and present a unique set of opportunities and execution challenges. The debt requirement for an additional 340 GW Renewable Energy (RE) target works out to ~ Rs. 14 Lakh Cr over a period of 9 years. A large amount of direct and indirect public monies will be involved in the future in the RE finance pie, and hence we felt the need for critical discourse on specific nuances of credit risk for RE debt as well as the current policy responses to RE finance. As part of multiple initiatives to attract debt towards the Indian RE sector, SEBI has introduced the Expected Loss (EL) Ratings Scale which includes scenario-based recoverability of the underlying project’s economic value post any debt servicing default. The EL Ratings Scale’s attempt to shift the focus from single rupee single day default to a more relaxed stance on default tolerance becoming part of the investment thesis for capital market participants (especially for public insurance companies and pension companies) is an area which needs to be handled with great care and regulatory forethought. Investors, policy formulators, institutional investment decision makers, researchers and journalists interested in the dynamic Indian RE space, come join us for a webinar on the financing risk nuances for the Indian RE story. This webinar discussed the findings and recommendations of our reports, ‘Financing the Indian green energy dream: Scale, Risk Nuances and Policy Response’ and ‘Expected Loss Ratings Scale: Unexpected outcomes’.
Date and time: Wednesday, 22 June 2022 | 3 to 4 PM
Speaker: Sonali Gokhale
Host: Shantanu Dixit
The presentation made at the webinar and its full recording can be accessed below.