MNRE proposes REEFO for consistent RE funding

The Ministry of New and Renewable Energy (MNRE) has proposed a renewable energy financing obligation (REEFO) to ensure dedicated financial support for India’s renewable energy sector.

Similar to Renewable Purchase Obligations (RPOs) for discoms, REEFO would require financial institutions to allocate a portion of their lending to renewable energy projects. This initiative aims to secure consistent and affordable capital for solar, wind, and green hydrogen projects while de-risking investments in emerging clean energy technologies.

MNRE has also urged banks to simplify financing for rooftop solar and decentralised renewable energy projects and align lending policies with India’s clean energy strategy. The ministry emphasized the need for innovative financial instruments such as green bonds, concessional loans, and risk-mitigation mechanisms to accelerate renewable energy deployment.