Sandeep BadadAIR 82 · CSE 2025 · 134 wordsTheir whole copy
Opening · a date or context
The Budget 2025 pushed for green infrastructure through tariff reforms, incentives and Viability gap funding.
Body · points
VGF refers to monetary gap in form of assistance needed to make an enterprise economically viable.
Renewable energy projects have constraints that make their viability challenging:
- Large investment cost eg wind turbine & nucleus modules.
- Long gestation in case of hydroprojects.
- Uncertainty of financing and recovery of operational cost & capital.
④ Geopolitical uncertainties like – Critical minerals dependency ⑤ Climate change vagaries → destroy infra-structure
VGF role in promoting renewable projects
① Gives cushion to take risk ② Promotes innovation and upgradation ③ Incentivises scaling of the project Eg Pavagada solar park ④ Promotes research and development
Close · a framework
& final effluent solution
Renewable energy is crucial for Vision 2047 and fulfill commitment under SDG and Panchamrit