MUMBAI, INDIA:- The International Renewable Energy Agency (IRENA), in collaboration with India’s G20 Presidency, today released a comprehensive report on how low-cost finance can accelerate the energy transition. .with title low cost energy transition financeproduced in close collaboration with India’s Ministry of New and Renewable Energy (MNRE), the report provides a toolbox for increasing the availability of low-cost capital in G20 countries and beyond. .
The report was presented by Mr. Gauri Singh, Deputy Executive Director of IRENA, Mr. Bhupinder S. Bhara, Secretary of MNRE and Mr. Alok Kumar, Secretary of Power, India. The announcement was made at a side event co-organized by MNRE and the Renewable Energy Development Authority of India during the G20’s 3rd Energy Transition Working Group (ETWG) in Mumbai.
IRENA Executive Director Francesco La Camera said in a statement announcing the report: “The global energy transition requires a rapid expansion of renewable energy installations around the world, making access to low-cost financing of urgent importance. , is proud to provide valuable insights to assist the President of India in promoting access to affordable finance in developing and developed countries.”
According to IRENA A preview of the global energy transition outlookReaching the 1.5°C climate target would require an increase in the share of renewable energy in the primary energy mix by about three-quarters, requiring an average annual investment of over US$5 trillion by 2030. However, access to finance is difficult in many emerging and low-income countries. The economy is inadequate and often too costly to accelerate the energy transition at the rate required.
In this regard, country and policy risks are often identified as the main impediments to cross-border institutional capital flows, according to the report, although the situation varies from country to country.
Drawing on lessons learned from the rapid cost reductions seen in solar and wind power in recent years, the report seeks to reduce the transaction costs of technology transfer and promote foreign direct investment to accelerate the scale-up of hydrogen and offshore wind. It lists the frameworks that enable frameworks that can encourage investment. And battery storage – an essential technology for the next phase of the energy transition.
These innovation frameworks can drive improvements in enabling technologies, business models, market design, and system operations. According to the report, these include technology maturity, innovation, system integration, increased manufacturing capacity and reduced labor costs.
Low-cost financing has been identified as one of the six key priority areas set by India’s G20 presidency. IRENA is also working with the Office of the President on other priorities, such as resource efficiency and circular economy in the steel sector.