India clean energy investment smashes $7.2 billion, despite Europe turmoil
- 28 October 2011
NEW DELHI: Renewable energy project investment in India has topped $7.2 billion in the first three quarters of 2011 regardless of Europe’s debt crisis, according to Bloomberg New Energy Finance (BNEF).
Built from project finance, public markets and new investment, in just nine months this impressive figure has already beaten 2010’s total of $5.7 billion.
"The major difference this year is the contribution from the solar sector,'' said Ashish Sethia, India country manager, BNEF. ``We've seen a four-fold rise in investment driven by federal and state-level policies.''
The Indian renewables markets remain strong despite Europe’s turmoil, owing to surging clean technologies like solar and various Government initiatives. One of these initiatives was Government permits to form 1,100 megawatts of solar capacity by 2012 - a bold target which Bloomberg says exceeds all 2010 installations in non-European countries.
The largest portion of the investment, $3.7 billion, went to wind energy which reflects the fact that India is third in the world for new wind capacity, with companies like Suzlon Energy and Vestas leading the way.
The $7.2 billion does not include investments through equity buyouts, research and development, or mergers and acquisitions.
Aditi Dass, Director of Programmes in India, The Climate Group says, “With favorable policy initiatives such as tax holidays, duty rebates, improvement in infrastructural facilities and so on, a rise in clean energy investment was always waiting to come home. In the light of the global economic scenario, the clean investment figures in India might be little surprising, but we feel that this has happened naturally and things should only get better in times to come. The multidimensional approach adopted by the Ministry of New and Renewable Energy has started paying dividends and this indeed is an exciting time for a country like India that has hit the right note in balancing a pro planet growth trajectory.”