Renewable energy generation is more expensive in India than in the US and Europe due to costly financing schemes, said a study. According to the Climate Policy Initiative and the Centre for Emerging Markets of the Indian School of Business, the high interest rates applied to relatively short-term loans for renewable projects in India add 24 to 32 per cent to its costs. These debt market issues, it said, may hinder India’s chances of reaching its target 4,000 to 10,000 MW of renewable energy by 2017. Reuben Abraham, executive director of the Centre for Emerging Markets, said India has enough wind and solar energy potential to reach its targets but the financing challenges may dampen these goals.
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