Gujarat Urja Vikas Nigam Limited (GUNVL) announces a green financing fund at RE-INVEST 2024 to support renewable energy bid winners

Gujarat Urja Vikas Nigam Limited (GUVNL) officially announced a green financing fund to support its RE bid winners at the 4th Global Renewable Energy Investors Meet and Expo (RE-INVEST). This came as the concluding point of a crucial roundtable discussion on ‘Climate Finance Opportunities for Gujarat’ which was chaired by Shri Kanubhai Desai, Hon'ble Minister of Finance, Energy & Petrochemicals for the state.

In his opening remarks, Shri Kanubhai Desai outlined Gujarat’s priority of installing 100 GW of renewable energy by 2030, emphasizing that this ambitious goal would require substantial financial support. The panel included participation from government officials such as Mr. S. J. Haider, Additional Chief Secretary of the Energy and Petrochemicals Department of Gujarat, and Mr. Rajiv Topno, IAS, Chief Commissioner of Commercial Taxes, Government of Gujarat. Drawing from his experience with both the World Bank and the Government, Mr. Topno contributed to the discussion on just transition by presenting perspectives from both government and multilateral agencies. He emphasized the importance of bankable projects, thorough risk assessment and mitigation, and the need to mobilize capital for rapid growth by efficiently churning capital.

“Our vision is to alleviate a major challenge, that is access to affordable financing,” said Hon’ble Minister Shri Kanubhai Desai. “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,”  added Jai Prakash Shivahare, MD, GUVNL.

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The dedicated fund, envisioned in partnership with sovereign wealth funds, green funds, and multilateral agencies, would provide financial resource directly to the developers who win GUVNL’s RE bids. This innovative approach aims to ultimately  the state’s position as a leader in India’s renewable energy sector. In a prompt response, REC Ltd, a Maharatna company under the Ministry of Power, has decided to anchor the fund.

Talking about the development, Shri VK Dewangan, CMD, REC Ltd, said “We are happy to be playing the role of the anchor financier for RE projects being developed in Gujarat under the holding company GUVNL. It is pivotal to look at what we need to meet our net zero targets.”

The roundtable discussion saw participation from major stakeholders including officials from the centre and state governments, multilateral agencies, banks and financial institutions along side some key names from the industry working in climate and energy. Crucial points were made by members from ProClime, UNFCC, HUDCO and Auden.

India requires an investment of INR 30 Lac Crores to achieve its target of 500GW of non-fossil fuel installed capacity by 2030. Talking about decarbonization and India’s opportunity, Kavin Kumar Kandasamy, CEO, ProClime highlighted the power of carbon markets in supporting just transition. He said, “By incentivizing emission reductions and channelling investments into clean technologies, these markets can drive a transition that creates green jobs, improves air quality in urban centers, and empowers rural communities through renewable energy projects. Carbon markets offer India a unique opportunity to balance economic growth with environmental stewardship, ensuring no one is left behind in the shift to a low-carbon future.”

This strategic move also opens the door to substantial international investments in the country’s clean energy future. Highlighting this, Erik Solheim, Former Minister of Climate and the Environment of Norway said, “Gujarat’s vision plus its track record in renewable adoption and strong policy makes a strong case for investment viability. The state is a front runner for International Investments in the energy sector.”

This initiative comes at a crucial time, with GUVNL planning to add 44 GW of renewable energy (RE) capacity and 11 GW/55 GWh of energy storage systems (ESS) by 2030.

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