RE-INVEST 2024: CEO Roundtable delved into ‘Exploring Climate Finance Opportunities for Gujarat’
Govt officials and industry experts discussed the pathways to mobilize funds for Gujarat’s renewable energy expansion
Gandhinagar, 18 September, 2024: A top-level CEO Roundtable on Exploring Climate Finance Opportunities for Gujarat held on 17 September 2024 at 4 PM at the Mahatma Mandir Convention and Exhibition Centre, Gandhinagar, Gujarat. Organized by Government of Gujarat, this CEO Roundtable was part of the 4th edition of the Global Renewable Energy Investors' Meet and Expo (RE-INVEST 2024) that was organized by Ministry of New and Renewable Energy, Government of India, from 16th to 18th September 2024 at Gandhinagar. This pivotal event had gathered senior financial stakeholders to discuss strategies for mobilizing the capital needed to support Gujarat's future energy demand and how these financial needs can be met through various financial instruments and investment strategies.
The roundtable saw participation from senior officials of state and central government bodies, international and domestic financing institutions, bank representatives, academia, and secretaries from various states.
The session opened with special addresses from officers of Government of Gujarat Shri Rajeev Topno, IAS, Chief Commissioner of State Tax, and Dr. T. Natrajan, IAS, Principal Secretary, Finance Department. The session was graced by the presence of senior officers from Government of India and other state governments like Shri Baldeo Purushartha, IAS, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Shri K.R. Jyothilal, IAS, Additional Chief Secretary, General Administration Department, Government of Kerala and Shri Vivek Kumar Dewangan, Chairman and Managing Director, Rural Electrification Corporation Limited.
The session was chaired by Shri Kanubhai Desai, Hon’ble Minister of Finance, Energy and Petrochemicals and moderated by Mr. Kavin Kumar Kandasamy, CEO, ProClime.
Commenting on this Roundtable, Shri Dr. T. Natarajan, IAS, Principal Secretary, Finance Department, Government of Gujarat said, “Gujarat’s renewable energy installed capacity is expected to grow to 100 GW by 2030, requiring substantial investment in wind, solar, and hybrid energy projects. The roundtable was aimed to facilitate discussions on how Gujarat can secure the necessary Rs. 2.4 trillion ($30.6 billion) for renewable energy projects, Rs. 1 trillion ($12 billion) for energy storage systems (ESS) and Rs. 550 billion ($6.6 billion) for transmission infrastructure.” The session had focused on how these financial needs can be met through various financial instruments and investment strategies involving a diverse group of financial stakeholders.
The session explored key renewable energy initiatives such as Green Hydrogen, Energy Storage Solutions, and Offshore Wind, with a specific focus on the financing mechanisms critical to driving these projects. Topics of discussion included green bonds, sustainability loans, domestic finance options, and carbon credits as means to facilitate climate finance.
Gujarat was highlighted as a leader in climate finance initiatives, with organizations such as IFC, PFC, REC, and HUDCO expressing interest in supporting decarbonization efforts through strategic capital investments. With Gujarat targeting 100 GW of non-fossil fuel capacity by 2030, the state is positioned to leverage various financing avenues to meet these ambitious goals.
Opening remarks emphasized that Gujarat’s state power utility has achieved the highest profit margins in the country, placing it at the forefront of power utility ratings. The state’s rapid project turnaround times, favourable ‘Ease of Doing Business’ environment, advanced technological infrastructure, development of thematic bonds and substantial market potential were underscored as key factors making Gujarat a prime destination for green project financing.
Discussions also touched on the need for small and medium-sized developers to access finance for green project development, with attention drawn to the challenges of early-mover disadvantages, such as investment risk and return uncertainties. REC signalled its readiness to act as a financing anchor for upcoming projects in the state with a target energy portfolio of Rs. 3 lakh crores before 2030. They expressed that the development of GIFT city in Gujarat will play a significant role in enabling this.
The session also noted that a significant portion of climate finance is directed toward infrastructure development, and suggestions were made to create a risk index based on geographic indicators for more efficient fund allocation. Some of the key risk reducing factors suggested during the Roundtable included analysing market signals, market making and development by offtake and envisioning long term strategies based on current market signals.
In conclusion, the Roundtable provided a valuable platform for stakeholders across the renewable energy ecosystem to convene and address the pivotal role of finance in driving renewable energy projects forward in Gujarat.
