Gandhinagar, Sep 18 (PTI) Gujarat Urja Vikas Nigam Ltd (GUVNL) has announced a green financing fund at the 4th Global Renewable Energy Investors Meet and Expo (RE-INVEST).
The dedicated fund -- envisioned in partnership with sovereign wealth funds, green funds, and multilateral agencies -- will provide financial resource directly to the developers who win GUVNL's renewable energy (RE) bids.
This came as the concluding point of a crucial roundtable discussion on 'Climate Finance Opportunities for Gujarat', which was chaired by Kanubhai Desai, Minister of Finance, Energy and Petrochemicals for the state, GUVNL said in a statement.
Desai outlined Gujarat's priority of installing 100 GW of renewable energy by 2030, emphasising that the goal will require substantial financial support.
"A tripartite agreement between GUVNL, the fund, and project developers, structured around an escrow account, will ensure that funds for energy supplied to GUVNL flow into the escrow account. This arrangement will provide secure repayment of loans by developers, offering comfort to investors," GUVNL MD Jai Prakash Shivahare said.
This innovative approach aims to ultimately lift the state's position as a leader in India's renewable energy sector, the statement said.
REC Ltd, a Maharatna company under the Ministry of Power, has decided to anchor the fund.
REC Ltd CMD V K Dewangan said in the statement, "We are happy to be playing the role of the anchor financier for RE projects being developed in Gujarat under the holding company GUVNL."
This initiative comes at a time GUVNL is planning to add 44 GW of RE capacity and 11 GW/55 GWh of energy storage systems by 2030.