Search Climate Insights Directory
1 result
DateDocumentOrganization and type
Reaching India’s Renewable Energy Targets Cost-Effectively: A Foreign Exchange Hedging Facility
The report argues that high currency hedging costs in India make foreign debt nearly as expensive as domestic debt, hindering renewable energy targets. It proposes a government-sponsored FX hedging facility that could reduce hedging costs by nearly 50% and government support costs by up to 54%. The analysis suggests that while the expected cost of such a facility is 3.5 percentage points per year, the government would need a capital buffer of approximately INR 14.26 million/MW over 10 years to maintain a BBB- sovereign rating.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Executive summary
Showing 1–1 of 1 document