Now Reading: India faces $35 billion annual renewable financing gap: Knight Frank
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India faces $35 billion annual renewable financing gap: Knight Frank
India faces $35 billion annual renewable financing gap: Knight Frank
India could face an annual renewable energy financing gap of nearly $35 billion as it races to achieve a 500 GW non-fossil fuel capacity target by 2030, according to a Knight Frank…
The Story in Brief
India could face an annual renewable energy financing gap of nearly $35 billion as it races to achieve a 500 GW non-fossil fuel capacity target by 2030, according to a Knight Frank India report released Tuesday. The country’s non-fossil fuel capacity has risen fivefold to 300 GW as of July 2026, but it needs to add roughly 200 GW in four years, requiring annual investments of $48-54 billion against the current $13-18 billion.
Infrastructure Investment Trusts (InvITs) could help developers monetise operational assets and recycle capital into new projects. However, less than 2 per cent of India’s operational renewable capacity has been monetised through InvITs. Knight Frank estimates that utility-scale solar assets worth about Rs 3.1 lakh crore could be eligible for InvIT structures, offering yields of 10-10.5 per cent to institutional investors.
The Indian Opinion
The $35-billion gap narrative often paints India as falling behind on climate finance, but it overlooks an underused tool: InvITs. With less than 2 per cent of operational solar assets monetised through these trusts, the problem is not a lack of capital but a bottleneck in financial innovation. The test is whether the government and regulators will ease InvIT rules to attract pension and insurance funds, turning a gap into an opportunity.
Source: energy.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
