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Financing India’s energy transition: IEEFA Report
India Finance
A new study by the Institute for Energy Economics and Financial Analysis, titled “Financing the energy transition: A credit perspective on India’s power sector”, finds that credit markets are already structurally differentiating between renewable and thermal assets, with renewables delivering stronger margins and better access to capital. India is targeting 500 GW of renewables, and 60% non-fossil fuel energy in its overall mix by 2035, with financing its next big hurdle. Meeting the country’s revised Nationally Determined Contributions will depend as much on structure of debt finance as on technology or policy. Financing needs are anticipated to rise to USD 145 billion annually by 2035 for renewables, making debt markets, rather than just technology or policy, central to the energy transition. India’s dependence on imported fossil fuels, for crude oil and liquefied natural gas (LNG) for power, leaves its economy acutely exposed to geopolitical
shocks and supply disruptions, reinforcing the urgent need to accelerate transition. Key takeaways: ● Annual investments in renewables, storage and transmission are estimated to surge from USD68 billion (INR6.18 trillion) by 2032 to as much as USD145 billion (INR13.19 trillion) by 2035.
● Credit markets are already structurally differentiating between clean and thermal assets: Renewable platforms deliver stronger margins, lower variable costs, and broader access to capital than their thermal peers. With a sovereign-aligned credit rating and a planned capex of INR7 trillion (USD 80 billion) through to financial year 2032, NTPC Ltd, India’s largest state-owned power utility, is uniquely placed to anchor large-scale, low-cost transition financing and catalyse broader capital flows across the sector.
● India’s corporate bond market remains structurally underdeveloped, with loans
the dominant funding channel across the economy. Over-reliance on more mobile international capital flows also exposes the energy transition to sudden foreign capital repatriation.
The report finds that not all players will face transition risks equally. Financially constrained players will face a dual challenge: limited balance sheet flexibility to adapt decarbonisation strategies, alongside increasingly restricted access to the funding sources that remain available to higher- quality credits. State-owned enterprises like NTPC and SJVN benefit from implicit government backing that provides refinancing flexibility unavailable to private issuers. Among the utilities, NTPC is central to unlocking transition finance. It is India’s largest integrated power utility accounting for around 17% of installed capacity, with 51.1% government ownership and a credit rating aligned with sovereign debt.
Masdar and TotalEnergies sign $2.2bn RE venture
Abu Dhabi Renewable energy Masdar and TotalEnergies have entered into a binding agreement to create a $2.2bn joint venture (JV) that will combine their onshore renewable energy activities in nine Asian countries under a 50/50 ownership structure. As electricity demand rises in Asia, the two companies plan to combine funding and technical capabilities through the new partnership to expand renewable generation. After the deal closes, the JV will serve as the sole platform for both firms to develop, construct, own and operate onshore solar, wind and battery storage projects.
The projects will be located in Azerbaijan,
Kazakhstan, Malaysia, Indonesia, Japan, the Philippines, South Korea, Singapore, and Uzbekistan. Masdar CEO Mohamed Jameel Al Ramahi said: “This joint venture reinforces Abu Dhabi’s status as a global centre for energy leadership, combining the expertise of Masdar and TotalEnergies to drive renewable energy deployment across Asia.
“For Masdar, this JV strengthens and diversifies our portfolio, unlocking new opportunities in attractive, high-growth markets, while bringing in a like-minded partner to accelerate growth and deliver additional value in our existing markets.” The venture’s portfolio will include 3 GW of operating assets and a further 6 GW of projects
in advanced development, which the partners intend to bring into operation by 2030. TotalEnergies and Masdar will each contribute assets of similar value to the new entity which will be headquartered in Abu Dhabi Global Market. The JV remains subject to regulatory approvals and other closing conditions. TotalEnergies chairman and CEO Patrick Pouyanné said: “This agreement with Masdar brings together two major renewable players to build a renewable champion in Asia. “It will allow us to combine the strengths of our two companies to secure significant positions in these markets and create more value than if we were acting alone.”
Zambia launches 300 MW solar PV tender Zambia Solar energy
Zambia has opened a call for proposals for solar photovoltaic projects with a combined capacity of up to 300 MW, as part of the Carbon Feed-In Premium (CFIP) programme. The ministry of Green Economy and Environment and the Ministry of Energy jointly announced the tender, which targets solar PV projects equipped with battery storage, Renewables Now has reported.
The authorities are inviting applications from local and international independent power producers, national utility ZESCO and its subsidiaries, and other eligible stakeholders. The current window focuses exclusively on
6 | April 2026 |
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solar PV with storage and forms the initial technology phase of the CFIP mechanism. Project developers have up to two months to prepare and submit their proposals, with the deadline for applications set at 31 May 2026. The ministries will apply the CFIP eligibility criteria, set out in Annex 1 of the programme documents, to assess submissions. Each project must have a planned installed capacity between 30 MWac and 100 MWac and include an on-site battery energy storage system (BESS) with a minimum duration of 30 minutes. At least half of the electricity generated must be sold to ZESCO or its subsidiaries under the conditions of the call. A CFIP Steering Committee will evaluate
project submissions against the programme’s eligibility requirements and core principles. Projects that pass this initial screening will move to a further stage of analysis and consideration to confirm compliance with all CFIP conditions and requirements. All shortlisted projects must also complete the NACA Fund due diligence process. Projects that successfully pass due diligence will receive an offer of a standardised CFIP renewable energy project contract from ZANACO, which acts as CFIP Fund Manager. This contract will set out the CFIP price and payment terms for transfers from ZANACO to the renewable energy project proponent.
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