GREEN WINDOW FOR GREEN ENERGY FINANCE
12, Dec 2019
Prelims level : Environmental Impact Assessment Mains level : GS-III Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment
Why in News?
- The Indian Renewable Energy Development Agency (IREDA) is planning to set up a dedicated “Green Window to serve the unserved segments of Renewable Energy.”
- The IREDA Green Window would provide a significant boost to the Renewable Energy Market.
- This is a new financing approach to boost investment in clean energy.
- The Indian Renewable Energy Development Agency (IREDA), the country’s premier public finance institution, is considering an allocation of $20 million in seed funding to set up its pioneering “Green Window” aimed toward catalysing private investment and expanding the Indian clean energy market.
- A green window is a financing approach designed to leverage limited government funds to attract private capital to achieve climate and clean energy goals. The IREDA Green Window builds on the globally successful green bank model.
- Green windows, like green banks, are public entities created to work with the private sector to increase investment in green energy and bring clean energy financing into the mainstream.
- They are innovative and new tools that have been successful in the United Kingdom, Australia, Japan, Malaysia and the United States.
- India is one of the top three nations leading global renewable energy growth.
- As of October 2019, India’s installed renewable capacity has already met about half of its 2022 target of 175 GW. Achieving the 175 GW goal would increase green energy access for millions of Indians and, additionally, could create up to 1 million job opportunities for over 300,000 workers in the country by 2022.
- IREDA is India’s leading financial institution dedicated to clean energy expansion.
- Since its founding under the Ministry of New and Renewable Energy in 1987, IREDA has financed the largest share of renewable energy projects in India.
- It is a Mini-Ratna (Category 1) enterprise.
- It was established as a non-banking financial institution engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.
- Its motto is: “Energy for Ever”.