Renewable energy sector gets $100 bn investment in 2015

Several renewable energy agreements were signed between state-owned enterprises, Indian power companies, and global renewable energy firms The Dollar Business Bureau

India is executing one of the most radical energy sector transformations ever undertaken, and this year (2015) has shown that the flow of finance is matching the ambition

India’s renewable energy sector has undergone a paradigm shift as a result of investments worth more than $100 billion over the last eight months in 2015, according to a report released by the Institute for Energy Economics and Financial Analysis (IEEFA). The report titled “India’s Electricity Sector Transformation” says there has been an influx of global capitals into India as the country moves toward its goal of installing 175 gigawatts of renewable energy by 2022. “In early 2015, global financial markets were skeptical about whether good intentions and big promises could be turned into concrete actions. In India’s so-called ‘seven horses of energy’ electricity sector transformation, renewable energy is ahead of the pack and rapidly gathering pace,” said Tim Buckley, director of energy finance studies at IEEFA. The agreements were signed between state-owned enterprises, Indian power companies, many Indian billionaires who are new to the power sector and leading global renewable energy firms. The renewable-energy sector attracted more than a dozen major deals in October alone last year. China-based Sany Group announced an investment worth $3 billion by 2020, another Chinese company Chint Group announced plans to invest $2 billion by 2020, while the German government pledged to invest €1.5 billion over a period of five years through a German-Indian solar partnership. Earlier, India’s Energy Minister Piyush Goyal had also asserted that the country’s reliance on thermal coal imports is not sustainable. He had emphasised the need to bolster renewable energy sector through more foreign investments. Four of the world’s largest solar manufacturers companies—Trina Solar, JA Solar, Hanwha Q CELLS and LONGi— have also advanced plans to build solar manufacturing capacity in India. Several leading Asian innovators and utility companies such as Foxconn of Taiwan, SoftBank of Japan, Sembcorp of Singapore and CLP Group of Hong Kong have also targeted Indian renewable sector for their big term investments. India’s leading power companies like Adani Power, Tata Power and Reliance Power have already initiated investments in the country’s renewable sector. “Smart money is backing renewable energy. India is executing one of the most radical energy sector transformations ever undertaken, and this year (2015) has shown that the flow of finance is matching the ambition,” Buckley said.

January 04, 2016 | 06:00pm IST

Related Topics:

The Dollar Business Bureau - Jan 04, 2016 12:24 IST

Renewable energy sector gets $100 bn investment in 2015

We like you just the way you are.