# India saw record $10.3bn clean energy investment in 2011

- Link: https://greenlivingguy.com/2012/02/india-saw-record-10-3bn-clean-energy-investment-in-2011/
- Published: 2012-02-11T03:26:54-05:00
- Author: greenlivingguy

Investment in India out-paces the rest of the world, thanks to the improving cost-
competitiveness of wind and solar

New Delhi, London and New York, 2 February 2012 – Clean energy investments in India
reached $10.3bn in 2011, some 52% higher than the $6.8bn invested in 2010. This 
was the highest growth figure of any significant economy in the world. There is 
plenty of room for further expansion – in 2011, India accounted for 4% of global
investment in clean energy.

The large growth was driven by a seven-fold increase in funding for grid-connected
solar projects: from $0.6bn in 2010 to $4.2bn in 2011. Solar almost reached the 
same level of investments as wind, which totalled $4.6bn.

Ashish Sethia, head of India research at Bloomberg New Energy Finance, said: “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.”

Asset financing for utility-scale projects remains the main type of clean energy
investment in India, with $9.5bn 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 $
425m invested in 2011, more than four times the 2010 figure. Wind and solar project
developers such as Mytrah Energy India and Kiran Energy Solar Power succeeded in
doing deals. The only major type of investment that fell in 2011 was equity-raising
via the public markets. Only $201m was raised compared to a record $735m in 2010
when the Indian stock market was at its all-time high.

The wind sector added a record 2,827MW of capacity in 2011 compared with 2,140MW
in 2010. This kept India at the third rank globally in terms of new installations,
behind China and the US. Bloomberg New Energy Finance estimates that 2,500MW to 
3,200MW of wind capacity could be added in 2012. A substantial increase in grid-
connected solar capacity was also observed, up from 18MW in 2010 to an estimated
277MW by end of 2011. In 2012, another 500-750MW of solar projects could be added.

India’s 11th five-year plan, running from April 2007 to March 2012, targeted the
addition of 12.4GW of grid-connected renewable energy. According to Bloomberg New
Energy Finance, this target will be exceeded, with 14.2GW capacity installed during
the period.

Sethia commented: “The surge in installation of renewable energy shows that it is
becoming cost competitive and scalable, at a time when India is struggling to meet
its targets for conventional power capacity. To carry this momentum forward on renewables,
federal and state governments will have to ensure four things. First, that transmission
lines are available for projects; second, that the grid can handle an increased 
flow of renewable energy; third, that renewable purchase obligations are enforced;
and, fourth, that project developers are paid on time for the power they produce.”

Michael Liebreich, chief executive of Bloomberg New Energy Finance, said: “India’s
record performance in 2011, and the momentum it is carrying into 2012, is one of
the bright spots in the clean energy firmament. With support mechanisms falling 
away in the US, the ongoing financial crisis in Europe, and China already going 
flat out, it is gratifying to see some of the world’s other major potential markets
coming alive. India is firmly in the lead group and we are seeing interest around
the world in being part of what is unfolding there.”

**_[Source: Bloomberg New Energy Finance](https://web.archive.org/web/20141229115537/https://www.bnef.com/PressReleases/view/186)_**

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 greenlivingguy

 The Green Living Guy, Seth Leitman is an independent power producer, a green living
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