The Reserve Bank of India’s (RBI) 25-basis-point increase in the repo rate to 5.5% could raise borrowing costs for renewable energy developers and manufacturers, potentially affecting project returns, financing decisions, and capacity expansion plans.Industry stakeholders expect the overall impact to remain manageable, supported by sustained demand for renewable energy. However, the extent of the increase in financing costs will depend on how quickly and to what degree lenders pass on the higher policy rate.
