Swedish-based impact investment platform Trine today announces their new partnership with Distributed Energy, an Indian-based solar energy provider. The new venture, totalling $5 million across multiple tranches, is set to advance investments in renewable energy across India – a new market for Trine’s investors.
India's growth in renewable energy, particularly in the solar sector, has been astonishing over the past decade. Favourable economic policies have boosted energy demand and consequently increased the demand for renewable energy.
“While India's commendable progress in the renewable energy sector is undeniable, there are several challenges that need to be addressed. One of the key challenges is the improvement of grid infrastructure to effectively manage the increasing influx of renewable energy. Another key is to ensure adequate financing for solar installations, particularly for small and medium-sized enterprises, which is crucial. ” says Ruchir Punjabi, co-founder and CEO at Distributed Energy.
The new partnership will enable investors at Trine to invest in solar energy in India, a new market for the platform. End customers that are on the receiving end of the solar energy include hospitals, manufacturing units, commercial buildings, industries, and educational institutions across the country.
“Despite the presence of numerous banks and financial institutions to provide support for funding, the immense demand outweighs the limited supply, leading to a significant attraction of foreign investors. This is where institutions like Trine can play a significant role and can bridge the financing gap and contribute to the development of renewable energy in the country.”, said Mohit Soni, Head of Investments at Trine.
