Renewable energy gets Rs 1,400 cr funding

Renewable energy gets Rs 1,400 cr funding

A slew of investors comprising private equity firms, public and private sector banks are set to invest about Rs 1,400 crore in existing and upcoming wind and solar energy projects in Madhya Pradesh, Tamil Nadu, Maharashtra and Gujarat, according to a Pricewaterhouse Coopers (PwC) source.

"The financial closure is expected by October this year; the power to be generated from these projects will be about 225 mega watt. The amount will be a combination of debt and equity," said the source on condition of anonymity.

The indicative return on investments would be about 15 per cent; the investment pipeline for such projects continues to be good, he added.

The concept of renewable energy certificates (RECs) that can be sold or traded through India Energy Exchange, the electricity trading platform is a big incentive to attract investments in this area.

These RECs can also be used by the respective entities to comply with regulatory requirement, such as renewable purchase obligations. One REC represents that 1MWh of energy is generated from renewable sources.