India and renewable energy projects: Tata Power, Adani, SBI issue green bonds

As the world shifts its focus to renewable energy to meet growing power requirements, organizations across the globe are investing in greener projects. The State Bank of India has been doing its bit to propel clean energy projects upfront as India races to meet its COP21 commitments.

Green bonds and loans from the banking sector for renewable power projects have skyrocketed. For the first time since the Paris Agreement came into effect, investments in renewable projects have overshadowed traditional fuel-powered projects. Indian brands have been quick to catch on, with companies like ReNew Power, Adani, SBI and Continuum Green Energy issuing their respective green bonds.

SBI’s head of Corporate Banking and Global Markets, Ashwani Bhatia, said that the transition to solar power in India is taking place steadily and his bank is keen to invest in electric cars. SBI has also been active in backing solar projects. In FY21, India’s largest bank greenlit loans for solar projects three times more than thermal projects. In fact, loans for new thermal installations have been on the decline in the previous fiscal as renewable projects are being seen as much more profitable in the long run.

Companies like Adani Green Energy, Tata Power, ReNew Power, etc., have followed suit. Adani Green Energy commissioned a number of solar projects in the previous financial, acquiring assets worth 205MW in Punjab, Karnataka and Uttar Pradesh. It also commissioned a 100MWac, 150MW and 100MW solar plants at Khirsara, Kutchh and Uttar Pradesh respectively. The company aims to develop a renewable energy portfolio of 25GW by 2025 and become one of the largest players in the global market. Currently, it has 15,390MW worth of projects spread across 11 states, contributing about 4,373 million units in power generation.

Green bonds have also become quite popular as players like Adani, SBI and ReNew Power have demonstrated. In April, ReNew Power successfully raised $585 million in green bonds, due in 2028. Similarly, Adani Green has also made plans to issue green bonds worth $12 billion in the next five years.

As India heads towards the future, it will have to contend with rising energy requirements. Presently, a majority of its power generation lies in thermal plants. This will remain unchanged until renewable projects are versatile enough to handle its demands at the flick of a switch. The shift to green energy is definitely taking place, thanks to industry stalwarts like Tata Power, Adani, SBI and ReNew Power, which will cement India’s place in a greener tomorrow.