02 February 2012 - Bloomberg New Energy Finance (BNEF) has revealed that clean energy investments in India reached $10.3 billion in 2011, some 52% higher than the $6.8 billion invested in 2010. This was the highest growth figure of any significant economy in the world, and has been put down to improving cost-competitiveness of wind and solar.
“There is plenty of room for further expansion - in 2011, India accounted for 4% of global investment in clean energy”, says BNEF. The large growth was driven by a seven-fold increase in funding for grid-connected solar projects: from $0.6 billion in 2010 to $4.2 billion in 2011. Solar almost reached the same level of investments as wind, which totalled $4.6 billion.
“There was concern at the beginning of last year that increasing lending rates might hit investment. Policy measures like the Jawaharlal Nehru National Solar Mission, and renewable energy’s increasing cost competitiveness, have made this a record year,” explains Ashish Sethia, head of India research at Bloomberg New Energy Finance.
Asset financing for utility-scale projects remains the main type of clean energy investment in India, with $9.5 billion in 2011. This is significant as the higher lending rates observed over the past year could have negatively impacted asset finance. Venture capital and private equity investment also made a strong comeback with $425 million invested in 2011, more than four times the 2010 figure. read more>>>