Global SWF’s Post

Foreign Direct investment (#FDI) in India’s #renewableenergy sector saw a rise of 50% year-over-year in FY 2023-24. FDI in renewables stood at $3.76 billion (₹315.84 billion) compared to $2.5 billion (₹206.5 billion) the previous financial year, according to Ministry of Commerce and Industry, Government of India. https://lnkd.in/gD8Nswx7

MET Group Achieves Second Highest Profitability in 2023, Expands Global Renewable Energy Footprint In 2023, Swiss-based MET Group recorded its second-highest financial results in company history, demonstrating robust performance in a less volatile market environment. The company achieved a consolidated revenue of EUR 24.5 billion, a decrease from the previous year’s EUR 41.5 billion, attributed to a lower price environment. MET Group capitalized on its integrated business model to sustain profitability and expand its financial capabilities, including launching a new EUR 1.33 billion Borrowing Base Facility along with several bilateral arrangements. This move underscores the confidence of its financial partners in MET’s business strategies and risk management. In line with its commitment to […] Read the full story here: https://lnkd.in/gDxuey42 #solarenergy #alternativeenergy #solarpv #pvsolar #photovoltaic #cleanenergy #cleantech #climatechange #middleeast #africa #india #asiapacific #asia #europe #financialresult #metgroup #renewableenergy #solarenergy #switzerland

The positive investment case for renewable energy. In this article in Daily Maverick, Neesa Moodley looks at the role the private sector can play in alleviating the energy crisis. Quoting Mergence Investment Managers Chief Investment Officer Brad Preston, she also looks at the potential contribution by Eskom and Transnet, emphasising that the performance of both utilities remains critical to South Africa’s economy, its listed companies, and the bond market. Given this importance, Brad put together a dashboard of eight high-frequency metrics to objectively track operational performance at the two utilities and attempted to project what this means for the country and its growth. Read the full analysis here: https://lnkd.in/dbpyKzb4 #MergenceInvestmentManagers #RenewableEnergy #Investment #EnergyCrisis #Eskom #Transnet #SouthAfrica #Economy #SustainableInvesting

MIGA (Multilateral Investment Guarantee Agency), part of the World Bank Group, plays a key role in cross-border trade in the power sector by providing risk mitigation instruments and concessional financing, which lower project costs and improve bankability. Through the MIGA-ISA Solar Facility, MIGA helps attract private investment into solar and distributed energy projects in developing countries, especially in Sub-Saharan Africa. By offering guarantees and reinsurance, it reduces the financial risks for investors in cross-border solar projects, promoting the expansion of clean, reliable energy access while facilitating international trade and development in renewable energy sectors. In the context of the Indian subcontinent, MIGA's collaboration with the International Solar Alliance (ISA) through the MIGA-ISA Solar Facility enhances India's leadership in promoting global renewable energy. Initiated by the Indian government, the facility leverages India's expertise in solar technology and concessional financing to support the expansion of clean energy across borders. By providing risk mitigation tools, the facility encourages private investment in solar projects, helping countries in the Indian subcontinent access affordable, sustainable energy, while boosting cross-border energy trade and regional energy security. This aligns with India's broader vision of fostering energy transitions across developing nations.

ADNOC has signed a $3bn green financing facility with Japan Bank for International Cooperation (JBIC). This agreement underscores the growing commercial ties between the UAE and Japan and marks a pivotal step in ADNOC's decarbonisation and energy transition efforts. The funding will support ADNOC's ambitious goals to reduce carbon intensity by 25% by 2030 and achieve Net Zero by 2045. This includes investments in hydrogen, geothermal, renewables, and carbon capture technologies. Additionally, ADNOC's recent delivery of low-carbon ammonia to Japan highlights its commitment to clean energy solutions - https://lnkd.in/dYZVCF-J #renewables #energy #lowcarbon #vision #sustainability #middleeast

#India's #CleanEnergy sector is finally making significant strides, with substantial increases in #solar and #wind installations. The country is on track to meet its ambitious #RenewableEnergy targets, potentially reducing its #CarbonFootprint ahead of schedule and setting a model for #sustainable development for other emerging economies. https://lnkd.in/gfWV-sTg

Recent reports regarding allegations against the Adani Group and their impact on stock performance have understandably raised concerns. As stakeholders, it’s crucial to approach such developments with a balanced view, focusing on facts and long-term trends. 1. Adani Group’s Resilience: The Adani Group has a history of managing challenges effectively and emerging stronger. Their diverse portfolio in critical sectors like renewable energy, ports, and logistics provides a solid foundation. 2. Global Leadership in Renewables: Despite the allegations, Adani Green Energy Ltd remains one of the largest renewable energy players globally. The company’s commitment to green energy aligns with India’s ambitious sustainability goals, making it a long-term growth story. 3. Legal and Regulatory Confidence: Adani has consistently worked within global regulatory frameworks. While investigations may create temporary uncertainty, the company’s transparency and legal compliance history suggest they will address the matter effectively. 4. Market Sentiment vs. Fundamentals: Short-term market reactions often amplify fears, but the Adani Group’s fundamentals remain robust. Investors should focus on long-term value rather than immediate fluctuations. 5. Evidence of Growth: Adani’s continued expansion in critical sectors, including energy transition and infrastructure, reflects its strong strategic vision and execution capabilities. While current events may seem challenging, the bigger picture reveals an organization that has consistently delivered value and demonstrated resilience in the face of adversity. A long-term investment strategy is key during such times.

In India, the #renewableenergy sector has experienced a significant increase in tendering activities, highlighted by a notable rise in allocated tenders from 4.2GW in Q3 2023 to 19.7GW in Q1 2024, underscoring strong sector momentum. This surge includes a shift towards complex tenders such as #FDRE, aimed at overcoming intermittency challenges in traditional solar and wind projects through advanced technologies ensuring continuous electricity supply. The next critical phase for India's renewable energy capacity hinges on strengthening its financing infrastructure. Initiatives include facilitating longer-term loans through domestic banks, capitalising on the sector's low risk profile compared to other infrastructure sectors. Issuing infrastructure bonds can attract sustained investment, while offering long-term INR foreign exchange hedging for offshore bond issuances can enhance access to global markets and mitigate currency risks. Simultaneously, tapping into the substantial pool of domestic institutional investor capital presents a significant opportunity to accelerate funding for renewable energy projects. By implementing these medium-term solutions, India can create a robust financing landscape that supports the expansion of renewable energy capacity, reinforcing its commitment to #sustainabledevelopment and #energysecurity. Sharing an op-ed co-authored along with Shantanu Srivastava, CFA and published in Asian Power Magazine.

𝐈𝐑𝐄𝐃𝐀 𝐛𝐨𝐧𝐝𝐬 𝐰𝐨𝐫𝐭𝐡 𝐑𝐬. 𝟏,𝟓𝟎𝟎 𝐜𝐫𝐨𝐫𝐞, 𝐨𝐯𝐞𝐫𝐬𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞𝐝 𝐛𝐲 𝟐.𝟔𝟓 𝐭𝐢𝐦𝐞𝐬 Indian Renewable Energy Development Agency (IREDA) successfully raised Rs. 1500 crore today through issuance of bonds. The bond issuance consisted of base issue of Rs. 500 crore and Green shoe option of Rs. 1,000 crore, received an overwhelming response from investors, being oversubscribed 2.65 times. The funds have been raised at an annual interest rate of 7.44% for a tenure of 10 years and 2 months. Commenting on the successful bond issuance, Shri Pradip Kumar Das, Chairman & Managing Director, said: “We are happy with the overwhelming response to our bond issuance. The oversubscription by 2.65 times underscores the trust and confidence that investors have in IREDA’s vision and its crucial role in driving the renewable energy growth in the country. This successful capital raising will enable us to further strengthen our efforts in financing green energy projects, contributing to India’s goal of achieving 500 GW non-fossil fuel installed capacity target by 2030.” #IREDA #Bonds #renewableenergy Ministry of New and Renewable Energy (MNRE)

Highlighting government support and eco-friendly policies as key enablers for #renewableenergyinvestments can significantly boost #investor interest and confidence.