The Ministry of New and Renewable Energy (MNRE) has proposed the introduction of a renewable energy financing obligation (REEFO) to secure dedicated financial support for India’s renewable energy sector.
REEFO aims to mandate financial institutions to allocate a portion of their lending portfolio to renewable energy projects. MNRE has urged banks to simplify financing processes, particularly for rooftop solar and decentralised renewable energy projects, and to align their lending policies with India’s clean energy growth strategy. The need for innovative financial instruments, including green bonds, concessional loans, and risk-mitigation mechanisms, to accelerate renewable energy deployment was also highlighted.