Investment in India's Renewable Energy Projects Surges by 63%: New Report

New Delhi, Dec 20 (NationPress) Financing for renewable energy projects experienced a significant 63% increase in 2023 compared to the previous year, reaching Rs 30,255 crore ($3.66 billion), according to a report by the Centre for Financial Accountability.

The report, titled 'Coal vs RE Investment in 2024', highlights that while there was a rise in project financing for renewable energy, new coal power projects saw no financing for the third consecutive year. However, corporate financing for coal power and mining companies amounted to $3 billion.

Solar power projects led the renewable energy investments in 2023, comprising 49% of the total, followed by hybrid projects at 46% and wind energy at 6%.

Joe Athialy, Executive Director of the Centre for Financial Accountability, stated, "We've consistently observed an uptick in project finance for solar and wind energy projects. This indicates strong investor confidence in renewable energy ventures."

In 2023, over 96% of financing for coal-linked companies in India was facilitated through underwriting by commercial banks, with loans representing only 4%.

US-based banks were the primary financiers for coal-linked companies, contributing 65% of the total.

By the end of 2023, India achieved 188 GW of non-fossil fuel capacity, as noted in the report.

Primary financing constituted 77% of project deals while refinancing represented the remaining 23%.

Commercial banks accounted for 68% of renewable energy loans, totaling Rs 20,625 crore ($2,497 million).

State-wise data showed that Gujarat received 25% of the financed capacity, amounting to Rs 9,857 crore ($1,193 million), followed by Karnataka with Rs 4,593 crore ($556 million).

India has added nearly 15 GW of renewable energy capacity between April and November in the current financial year, nearly double the 7.54 GW added in the same period last year, as mentioned by Union Minister Pralhad Joshi earlier this week.

During his address at the CII International Energy Conference and Exhibition (IECE), the Minister for Renewable Energy announced that India's total installed capacity in the non-fossil fuel energy sector reached 214 GW, marking an increase of over 14% compared to the same period last year.

He also highlighted that 2.3 GW of new capacity was added in November 2024 alone, which is a four-fold increase from the 566 MW added in November 2023.

Minister Joshi reaffirmed the government's commitment to achieving 500 GW of non-fossil fuel-based capacity by 2030.