Bhutan-India Renewable Energy Roundtable: IREDA chairman advocates debt financing over grants
Thimphu: Competitive debt financing is more advantageous than grants and is a strategic tool for advancing renewable energy projects, according to Chairman and Managing Director of Indian Renewable Energy Development Agency Limited (IREDA) Pradip Kumar Das.
Speaking at the Bhutan-India Renewable Energy Roundtable in Thimphu, Das explained how this type of financing could accelerate the region's transition to clean energy, reported ET Energy.
The event, co-organized by the Indian and Bhutanese governments, focused on strengthening renewable energy cooperation.
Das expressed IREDA’s readiness to support Bhutan’s renewable initiatives, operating within the regulatory framework of the Reserve Bank of India (RBI) and the Ministry of New and Renewable Energy (MNRE).
He assured that IREDA would take a comprehensive approach to project evaluation, promoting funding options designed for sustainable, long-term growth.
“IREDA’s experience in the sector allows us to offer competitive interest rates and long-term loan tenures, which can significantly drive Bhutan’s renewable energy growth trajectory,” he said.
He also encouraged Bhutan to consider rooftop solar installations to complement its existing hydropower resources.
“Rooftop solar could be a key area of development that complements Bhutan’s renewable resources. With large hydro power now classified as renewable energy, IREDA can also support financing for such projects, reinforcing our commitment to decarbonisation and clean energy initiatives,” Das added.
In a related session titled “Role of Solar Energy in Energy Mix,” IREDA General Manager (Projects) S.K. Dey highlighted the benefits of blended financing models for developing solar projects in Bhutan.
He underscored that combining funding sources such as equity, loans, and grants could be an effective approach to driving sector growth.
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