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Rom Werran Gayoo, PhD. Rom is an Adjunct Faculty at the University of Phoenix School of Business since 2008; he teaches Economics, Statistics, Strategy and Management Science courses to both MBA and Ba students on the Phoenix campus and on line. He is a manager and professional economist in the... More
My blog:
The Future of Renewable Energy
  • India's Leadership Role In Renewable Energy Finance 0 comments
    Apr 1, 2013 8:24 AM

    It is often the case when you put together the words "Renewable Energy" and "Finance" then the ending result is a horror movie. We are all familiar with the erratic behavior governments had in regards to RE finance since the start of the '08 economic crisis... elimination of subsidies, lack of funds to support new initiatives, etc. That is why the news from India are so dramatically different from the "norm". As it turns out Suzlon Energy (Bloomberg: SUEL IN, NSE SUZLON) an Indian wind turbine manufacturer announced it completed the sale of $647M in bonds. This is important for many reasons. First and foremost it demonstrates markets, when given a chance, will operate and use interest rate as a correction tool. Second the amount is not trivial by any stretch of the imagination... US$647M is a lot of money in the US and in any part of the world. Third and perhaps most important of all, the bond sale has the backing of the Bank of India. This is exactly where India is showing its leadership in the approach to do all it can in order to ensure an "orderly" transition into more RE sources. So unlike in the Western world where support for RE finance has been weak, here we have a country whose GDP is a fraction of the USA, but it appears they know their priorities right. This is a wonderful opportunity for us to share this piece of news with policymakers both in the US and in Europe, to use positive reinforcement in order to create broader support for RE finance.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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